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Home My WebLink AboutROY L. STINNETT - R.B. Watkins - George C. Atha - 1952-01-15 J )" CITY OF HUNTINGTON BEACH INTER-CEPARTMENT COMMUNICA-10N 11iYTIKC,TgN f..AGIi - Orazder D. Castle To Assistant Admin rrtrator From Herb Day Paul C. Jones Oil Field Supe3iuteudent ®� City Clerk Subject Sale of Oil Well "CHB11 rl Date May 10, 1972 Located on City Property by R. B. Watkins, et of This office bas be-,n notified (a copy is attached) that the above subject well located on City pr p the Edison p1t has been sold by R. 3. Watkins, et al t R y L. Stinnet 45 Pacific Coast According to my irate,/pretat{on of paragraph 11 of the erigi pal lease,, made to Ceorgoi Atha in January 1952, gives the lessee the right to transfer or convey without the permission of the ,lessor. On the surface this appears to be another instance of a "Suede Shoe' boy r.,oming to town fog^ t3 a nuinance value involved, but it also sinears that the; City will have no recourse. If, you wish to peruse the ail and gas lease on the subject F City property', you will. .find it in the City Clerk's oUice filed unde N R,. Watkins, Operations., 1� AL H. �. bay BEd c"rat c 5..,d'Al a � � 2863 WALNUT AVENUE y LoNo $EACH, CALIVOR 1IA-90806 MAY 10 197Z FSON E8: 427-893 t NEw,vs, 6-4579 May 4, 1972. City of Hunti.Ciguan Beach Oil DiV.LSiOn, City Hall Huntington Beach, California. Re: C.HY d. Lease Gentlemen: !Tease be advised that on tre �� day of April, 1972 the Estate of F. E.-Fairfreid, B. Watkins, Atlantic Oil -Company, J. W."Vuod, Les-Cal Company and Les-Ca3 Trust operating a,> t L. B. Watkins Gpe7ation-"' assigned all thei-r right, -"title and interest to Roy Stinnett it) that. certain Oil and Gas Lease dated January 15, 1952, by and betw en City of Huntington Beach as Lessor and George C. Atha as Lessee, recorded in Book 2294, Page 58, , Official. Records of Orange County. Yours truly, R. B. WATh i OPERATIONS C. D. Horne. CDH/j POFFICE MEMORANDA Doyle Miller, City Administrator To Attention; Bud Belcito Bate March 4, 1969 From Lou Ann Marshall in Re R. B. Watkins Assistant City Attorney Oil and Gas Lease The original oil and gas lease was entered on January 15, 1952. Such lease was exter..ded in 1953 anc� in 1954, and was amended in 1956, at w- ich time the city and lessees acknowledged that the wells had been drilled as required by the lease. All the amendments to the lease recite that all the terms and conditions of the original lease shall apply to the lease as amended. This would of course include the provision that the lease is operative and effective so long as oil or gas or casinghead gas or other hydrocarbon substances, or either or any of them, is produced from the land. Unless it can be shown that none of the above substances is being produced from the land, or tha'; some other term of the lease is being breached by the lessees, such as nonpayment of royalty, failure to drill additional yells under specified circumstances, failure to produce legs on demand of city,, or failure to pay the monthly payments if any of the provisions of the lease have been suspended, or failure to pay taxes ,?,s agreed by the lease, the city would have no basis for terminating this lease. To determine whether any of the above conditions have been breached, we would of course require additional information_. LAM:mw 1�� 1/t/U r t!j 5 1 &ax x To CITY OF HUNTINGTON BEACH P. 0. BOX 190,, HUNT1 WTON BEACH, CAL I T ORN I A j We, the undersigned, hereby certify that the following described insuronce is in force at this date issued for EMPLOYERS' SURPLUS LINES INSURAN,E CO. a Name of Assured: R'iSSELL B., bVATKINS DBA PACIFIC DRILLING COMPANY j Address of Assured:2863 ViALNUT AVE., LONG BEACH, CALIFORNIA j� Location of Risk: STATE OF CALIFORNIA Kind of Insurance: BODILY INJURY AND PROPERTY DAJ'AAGE Policy or Certificate No. E-512803 i.. Period TP,REE YEARS from 4-30-67 to 4-30-70 i' Limits of Liability Bodily injury ) COMBINED SIINGLF LIMIT OF l Property Damage ) $5009000.00 This document is furnished to you as a matter of information only. The issuance of ! this document does not make the person or organization to whom it is issued an ad- ditional assured, nor does it modify in any manner the cuntractof insurance behveen the Assured and the Underwriters,Anv a;sendment, change or extension of such can- tract can only be effected by specific endorsement attached thereto, For particulars concerning the limitations, conditions and terms of the coverage youj are referred to the original Policy or Policies in the possession of the Assured The undersigned will have no responsibility to give notice of car:.e{lation of this insurance except to the extent specifically provided herein, nor are we Iniurers, F' however Insurance has been effected by the Signer Corporation. Dated �t LOS ANGELES. CAL 1 FORf<d l A _ APR.I L 27 19 67 W. B. 6-RANDT & CO., INC., SA & TOSO, INC. By _ _ 1 * C I TY OF WANTI I TON BEACH ADDED AS ADD I OVAL I NSUROD __"_ SAN FRANCISCO, CALIFORNIA DENVERi COLORAOO LOS ANGELES. CALIFORNIA CHICAGO. 11.LINOIS SEATTLE, WASHINGTON KANSAS CITY, MISSOURt PORTLAND, OREGON NEW YORK, NEW YORK 1 W. E. TESCHI cOaAespoNDENT, HousTON, TEXAS. _ 3 l_. FORM S26-0 (7-61y i tlj ,��z►Nur®� CITY OF HUNTINGTON BEACH WL ENGINEERING DEPARTMENT Huntington Beach, California November l',, 1062 Honorable Mayor and City Council City o" Huntington ?RPach Gentlemen We have made an inspection of the location of R. B. Watkins Operations well City c-' Huntington Beach #3, located 1120 ft. East and 760 feet South from intersecting center line of Ratrdlton and Newland 'Streets, and found they have complied with the cles-u up ordinance, The Travelers Indemnity Company Bond No. 1043363 should be termi- nated in accordance with Section 2448.1 of the Ordinance Code. Attached is a sub-surface survey of the above named well in accordance with Section 2427.3 of the Ordinance Code and a request for termination of the drilling bond, if approved, this Travelers Indemnity Company bond: No. 'iO43364 should also be terminated and the owners notified. Very truly yours, ` ,'James R. Wheel er .-' City Engineer JRW:a Att. EDISON BUILDING • P.0,BOX 351 LOS ANGELES 53, CALIFORNIA RIGHT Of' WAY AND LAND DEPT. P.B.PEECOOK MANAO.R G.L.HARVEY A ssSh?IT SANAGER August 7, 1962 City of Huntington Beach Huntington '`leach, California Attention: Mr. Doyle Miller City Manager Subject: .Amendment to Oil and Gas Least Edison Acc:,ui.sition from City of Huntington ;each et &I Dear Doyle. Enclosed are the original of the "Amendment to Oil and Gas Lease" and Consents by surface Lessee's concerning our 1961 acquisition of the 1.99 acres of City property :Lying east of our Huntington Beach Steam Station. I believe these originals should be a par;; of your archives as they affect property rights still owned by the City. Cordial 3 y, on Senlor iiif�ht Of way Agent WCR,kb bclosure Lean +�rzrlar:s 1ZZ1'Z Z ;L�� _A,,1 J) 111B 3EZ�T JAMES H.MYTCHELL MAURICE E.HISeFRT 333 ROOSEVELT BUILDING J.H MITCHELL.JR. 727 WEST SEVENTH STREET LOS S.XOE LI:S 17,CALIFOWNIA. MADISON 1371 - July 11, 1952 Mr. C. A. Bauer, City Attorney Cit of Huntington Beach 1121 Main Street Huntington Beach, California Dear Mr. Bauer: This refers to our conversation of July 8 regard- ing the oil and Gas ,Lease dated January 15, 1952 between City of Huntington Beach, as lessor, and George C. Atha., as lessee, covering the S2 of the AVi,, of the SE! and a portion of the SW4 of the SE of Section 13, Township 6 South, Range 11 West. An Assignment was executed on March 7, 1952 by George C. Atha and Gladys Atha, as assignors, in favor of Glen Dial and George C. Atha, as assignees, covering the entire lessee's interest, which Assignment was recorded June 24, 1952 as Instrument 31.834 in Book 2347, Page 316, official Records, Orange County. Linder this Assignment, Glen Dial acouired an undivided 75% and George C. Atha an undivided 25� of the lesasee's interest, subject to an over- riding royalty of 6-1/6% reserved to George C. Atha. A further Assignment was executed on Lune 2, 1952 by Glen Dial, Edna Dial, George C. Atha and Gladys Atha, as assignors, in favor of Pacific Supply Cooperative and George C. Atha., as assignees, which Assignment was recorded on June 24, 1952 as Instrument 31835 in Book 2347, ;Page 319, Official Records, Grange County, Under this Assignment, Pacific Supply acquired an undivided 75% interest and George C. Atha: an undivided 25% of the lessee's interest, subject to 22-% overriding royalty reserved to Glen Dial and further subject to the 6-1/6% overriding royalty previously reserved to George C. Atha.. The lessee's interest is ;;ow held by pacific Supply- Cooperative, as to an undiv�.ded 75%,and George C, Atha, as to an iznd*.vided 25%, subject to overriding.., roy- alties of 2 reserved to Glen Dial and 6-116% rest-rued to George C. Atha. Mr. C. A. Bauer July 11, 1952 Page Two. I thought that I had extra copies of these two Assignments in my file which I could send you, but I fi...d that such is not the case. I will make copies and send them to you upon your eequest, if the foregoing in- formation is not deemed sufficient. Yours very truly, MAURICE E. HIBBERT d„ March 2, 1956 Russell B. ffatkfns 1502 L. Burnett St Long Begoh 6, Cal-if, Dear Sir, At an adjourned meeting of the Gf�r Council hold at late: o'clock P.M. Thursday, EarcPh 1, 1956, the follwing x6tion was made and carried. "On Ywtion by B#rtlett seconded by Lockett notion be giver to Russell. B. Atkins an Associates that the City Counoll extends until Apra. I, 1956 the pariad to cure the default tinder the gas ArAd oil lease with tho City; to co menco drilling the seeond Kell." Very truly yours. J. I.. �tanr3.acserto lty ^lark JLH3bd i Y 4 Ask November 14, 1955 Hus'qe11. B. Watkins • 1502 2, Burnett Street Res Oil and Gas Lease I.org Beach, California dated 1-15-52, betwn Cit:' of liuntin%;toa Beach 8- Goo. C. Atha. Jaear° Mro Watkins, At a regular meet held can November 7. 1955, the. City Council directed that you b,6 given a 9O dwy notice to comply with the provisions of the above subject lease that has beep assigr*d to you. The drilling provisions call for one well to be drilled each 90 days after the first won has, been plstce0on production, The lease calls for a minimbm of orte vre1l for each ton acres of the lease. This letter constitutes the 90 dW notice are directed 17 the City* CounciI. Very truly your$. J, L. Henricksen. Adrdnistmtiv* Of-ricer JLHabci / OIL 01Vl:3{CIN uea {}sf .gyp t PAC:IF1C SUPPLY COOPERATIVE -` enuC 714 WEST OLYMPIC SoULEVARQ. PRODUCF.R9 SUITG 317•319'.PETROLEUM HUILOIIiG AND -Los A13GEL,ES.iARKETERS .$, CALIFORNIACAL{FORNtA- GENERAL OFFICER WALLA WALLA,WASHINGTON � - RICilMON0:7.0291 January !t z95kt t. x City of Huntington Beach City Clerk Huntington Beach; California Dear Sir: We are enclosing our check # 3931 in the amount of 220#00 to cover the first monthis renewal rental under the terms of the att ,ched extention. f lie note that the exten'tion was not notar�.Aed on page 2 and �1 L,�ould appreciate It if -you have this done am: return same r to us for filing in the er hosed self-addressed stamped nvelope. 'Yours very truly,, PACIFIC UPPLY C Office Manager MAURICE E. HIBBERT ATTORNEY AT LAW 935 1 N.VAN NUYS BUiLWNG 21O WESr SEVENTH STREET LOS ANGELES 14 MICHIGAN 93Ok March 10, 1952 City Clerk City of Huntingtor Beach Huntington Beach, Calif. Dear .Sir: I enclose herewith Check No. 521 of George C. Atha., dated March 10, 1.952, drawn on Ambassador Branch of Security-First National Bank of Los Angers, payable to City Clerk. City of Huntington Beach, in the amount of $220,00. This check is to be applied to the payment of the rentals due March 15, 1952 under the provisions of the Oil. and Gas Lease dated January 15, 1952 between City of Huntington Beach, lessor, and George C. Atha, lessee. This rental is computed. at .$5.00 per acre for the 44 acres covered by the lease. Yours very truly, Tf1AURICE E. HIBBERT H.S Enc. cc: George C. Atha Glen Di- ,. � ,, _ .v� x N.' ""`��'.?rtt, ,��,. Y °""•r��"*'.�La'rcf'e s off'Fiti,S#'tx�°�'ia7flt•'�5��'�' e. r"`"`�, a+ �' .�� fr��z• 'C� � � "t� xa�i�'.��"AAt� r-uX^� � '' r.�:�t a,k�••r^•,.'�t. €,,lac r��}Sr`. ,�� ,� _:t ='�a4 � �'� y _: { a f w v w � S v� d.<r3 rt}.r ar CFb �:`"i 1` :I.t,a m x.• . (. 3 Via. ;3 n .. .{_x r• ~� ..y tht NAAW r 4e, v... .. ... #-;. .t t.. ..;.f;r...f •�xw c:.�..t - .� n 3 ''4?A ? �"' ,. s �'t,.' -. •Eg €?•-:. Ern 4 r3 k, t . .n $ T s 'rovilzt t vtl oil it d Aodf to A*fmFe.,*tz 4 f«.-0, i at»:�5�,,'a�1�*zkit5.?r. ,5- .�3� si .ra ye .:s,'��d�?xa y� ,w: » Y1Yli�'4 T•,i'nn 1 } �� t .Ar�S t T t �- RUFAM r - c,4 17 zlel,,12 71 f AL , j I A � 7 t r' t'��9'"l"T 'iF�Y7z�� TIL N4�Y a?.:J 3�'it. &•� iz n G�x cad . rtrm re araa rsn�a r• r �x 4'6wc" t 14 be"Imydw 60 ` ^Z girt,etif 1rY AMY o'd�W4 A ,P� �'R�"R :n'b'.Haty.,:+Eat$;ptdlS�sY�Y.xF`+S+R3E✓_ - �.. k>le 10 t d , y:~�, L:A7 .°)i.a ss.x, y.• !. ..M Yak +,M y s� M "e: .J P W.S:. 4 r n ..,a,�y.-� W NR SN:.. Nf •N .+1 Mi 4+ iw�acR ryi`,4. cti 53 .F• �.n�a .. -"e tuN'n" up #.. it y�aMTFk�n``, . Ym Y,p� #j-T<'i+ 5 5 S6K^ e is F +alpp 3 Ki+!n6M;+aihv-,NX1�+`dtt0.'aT}9riRYlKrtP'M?.��5'X'` 3'Md�i C't'�'+:'YRA�Lk}W'.rb?H�*C4� +- kieayY ie?}RiY`fft�ab$24'/9k'.'iK`.-� ypy� u 2 �t r og�f n� $ k'k Eot ',�M OIL AND GAS LEASE '.L"MIS AGREEMENT,made and entered into thisl.51t.Lday of __ZanUary--- 19-52____, by and between ----------- -CITY. -------- party of the first part,herein styled "Lessor," and-----. ...0 party of"ie second part,herein styled "Lessee." WITT-TESSETH:That for and:n consideration of_$22.0,_W_____._______DoIIars lawful money f the United States of America,to the Lessor paid,and of other valuable considerations,the receipt of all of which is hereby acknowledged, and in consideration of the covenants 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 Lpssee, its grantees,successors and assigns,the land and premises hereinafter described, with the sole and exclusive right to tile Lessee to drill for,pr duce,extract,take and remove ad,gas,asphaltum and other hydrocarbons (and water without cost for its operations) Eom, and to store the same upon, said land during the term hereinafter provided, with the right of entry thereon at all times for said purposes, and to construct, use, maintain, erect, repair and replace thereon and to remove therefrom all pipe lines, telephone and telegraph lines, tanks,machinery,buildings and other structures which the Lessee may desire in carrying on its business and operations on .,aid land, or adjoining or neighboring premises operated by Lessee, with the further right to fie Lessee or 2-iy of its subsidiaries to erect,maintain,operate and remove a plant with_-'I necessary appurtenances.for I ie 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 pur- poses.'the possession by the Lessee of said land shall be sole and exclusive, excepting only that the Lessor reserves the right to occupy said land or to lease the same for agricultural,horticultural,or grazing,uses,which uses shall be carried 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 State of California and is described as follows,to-wit: The S* of the W* of the 8B-,,3V and all that portion of the S14 of the SEi of Section 13, Twirnship 6 South, Range 11 West, S,B.B,& M., lying, north of t''ie southerly line of the land conveyed by 145110W Land Co. to A. C. Thorpe by deed recorded June 133, 19179 in Book 302, page 69, of Deeds Records of Orange County California; SUBvECT TO easelgient for road purposes of records and SUBJECT TP *the Surface lease bet-Ween Lessor and Georgiana W. Garrish, and contains----- --acres, more or less. TO HAVE AND TO HOT the same for a term yea/s from and after the date hereof and so long thereafter as oil or gas,or casinghead gas,or other hydrocarbons substances, or either or any of them, is produced therefrom. I consideration of iie yremises it is hereby utually agreed as follows: Exce as provide n Darayrapn P?Lessee shall pay Lessor a yon oil f-tietqual--..--One---eieh-th--W-8) -_part of the proceeds of all oil produced,saved and sold from the leased premises,after making the customary deductions for temper- ature,water and b.a.ai the posted availatble market price in the district in which the premises are located for oil of like gravity the day the oil is ran into purchaser's pipe line or storage tank, and settlement shill be made by Lessee on or before the 25th day of each month for accrued royalties for the preceding calendar month. At Lessor's option exercised not oftener than once in any one calendar year upon.__.Si_XtY______00___) days'previous written notice,Lessee shall deliver into Lessor's tanks on the leased premises,or at mouth of well to pipe line designated by Lessor free of cost, Lessor's royalty oil,provided that Lessee may at any time purchase and take Lessor's royalty oil at said posted available market price.No royalty shall be due to the Lessor for or on account of oil lost through evaporation,leakage or otherwise prior to the marketing of the same or delivery to Lessor if royalty oil is being taken in kind. 2. For all gas produced,saved and sold from said land by Lessee,the Lessee shall pay as royalty the._V_8__ part of the net proceeds from the sale of such gas,but nothing herein contained shall be deemed to obligate the' -ee to produce,save,sell or otherwise alispose of gas from said land.. For the purpose of having gasoline extracted frost, ,pro- duced 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 gas from other properties. Lessee shall meter such gas so transported a,-.1 such meter readings,together with the results of content tests by recognized methods made at approximately regular intervals,at least once every month,shall furnish the basis for computation of the amounts Of gal3oline and residue gas to be credited to this lease.Gas used or consumed,or lost in the operation.s of any such plant,shall br,free of charge,and Lessee shall not be held accountable to the Lessor for the same or for anyroya'ty thereon. Lessee shall not be required to pay royalty for or on account of any gas used for repressuring any oil-bearing formation which is being produced from by a well or wells on the leased premises,even though such repressuring is dune by injecting such gas into wells not situated on the leased premises.The Lessor shall be entitled to gas free of charge from any gas wel'. on the leased premises for all stovas and inside lights in the principal dwelling houses on said land by making his own con- rections at a point designated big Lessee, the taking and use of said gas to be at the Lessor's sole risk and exlwme at all times. 3. Any casinghead gasoline extracted from gas produced from said land shall,at the option of the lessee, be retuxned to the oil produced therefrom.and shall be treated as a part thereof;otherwise the Lessee shall pay to the Lessor as rf,,yalty for such extracted gasoline the equal_ 1/8 --part of the net proceeds of the sale thereof after detiucting transportation and extraction cost,or of the Lessee's T ssees portion fhereof if extracted on a royalty basis. If therc shall be no available market and/or no public or open market price for the gasoline at the place of extraction,then the Lessee shall be entitled to sell and/or dispose of all the gasoline for the best price and on the best terms obtainable,but in no case shall settlement of royalty be at a less pzice than that obtained by the Lessee for its portion of the gasoline, 4. The Lessee shall not be required to account to the Lessor for,or pay royalty on,oil, gas or water produced by the Lessee from said land and used by it in Its operations hereunder,but it may use such oil,gas and water free of charge. 5. Commencing with thel y n Ir in -of, if the Lessee has not theretofore com- menced drilling operationmLs on said Iand or terminated this lease as herein provided,the Lessee shall pay or tender to the NINE or so much of said land as may then still be held under this lease,until drilling operatiow are coanmenced or this lease terminated as herein provided. 6 The Le-, ee agrees to commence drilling operations on said land within 1.2 months from the date here- of (unless the Lessee has sooner commenced the drilling of an oiTset well on said lane as herein provided) and to prosecute the same with reasonable diligence until oil or gas is found, in paying quantities, or to a depth at which further drilling would,in the judgment of the Lessee,be unprofitable;or it may at any time within said period terminate this lease and surrender said land as hereinafter provided.No implied covenant shall be read into this lease requiring the Lessee to drill or to continue drilling on said land,or fixing the measure of diligence tberefor.The Lessee may elect not to commence or prosecute the drilling of a well on said land as above provided,and thereupon this lease shall terminate. 7. If the Lessee shall elect to drill on said land,as aforesaid,and oil or gas shall not be obtained in paying quantities in first we11 drilled, the Lessee shall,tivithui_.__ 4__t `,1..._�..(.._ )Y,=Uft after the completion or abandonment of the first well,commence on said land drilling operations for a second well,and.shall prosecute the same with reasonable dili- gence until oil or gas is found in paying quantities,ar until the well is drilled.to a depth at which further drilling would,in the judgment of the Lessee,be unprofitable;and the Lessee shall in like manner continue its operations until,oi� or gas in paying quantities is found,but subject always to the terms and conditions hereof and with the rights and privilege,to the Lessee herein given, 8. If oil or gas is found in paying quantities in any well so drilled by the Lessee on said lard,the Lessee,subject to the provisions hereof and to the suspension privileges hereinafter set forth,shall continue to drill additional wells on said land as rapidly as one string of tools working with reasonable diligence can complete the same,until there shall have':,ctr, completed on said land as man; wells as shall equal the total acreage then held under this lease divided by_10—;where- upon the Lessee shall hold all of the land free of further Arilling obligations;provided,that the Lessee may defer the com- mencement of drilling operations for the second or any subsequent well for a period not to months from the date of completion of the well last preceding A.Except as herein otherwise provided,it is agreed that the Lesse-_shall drill such wells and operate each completed oil well with reasonable diligence and in accordance with good oil field practice so long as such wells 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 reasonable conservation or curtailment pro- gram affecting the drilling of wells or the production of all oil and/or gas from said lapel, which the Lessee may either voluntarily or by order of any authorized governmental agency subscribe to or be subject to. Drilling and producing operations hereunder may also be suspended while the price offered generally to producers 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 the well. 9. If the Lessee shall complete a well or wells on said land which shall fail to produce oil in paying quantities but which produces gas in paying quantities,the Lessee,shall either sell so much of said gas as it may be able to find a market for,and pay the Lessor the royalty provided herein on the volume of gas so sold,or Lessee may,if it so elects,suspend the operation of such gas cell or wells from time to time and during the period of such suspension pay or tender to the Lessor as rental.. _-.-_.._..__.. t? )? _ ^ui advance, a sum equal to F_i r,e} Dollars per acre for so much of the acreage then field under this lease,such rental to continue until producing operations are re- sumed and royalties are paid to the Lessor for gas sold as above provided.It is 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 paying quan- tities,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. 111. If it should hereafter appear that the Lessor at the time of making this lease owns a less interest in the leased land than the fee simple estate or the entire interest in the 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 gas. ' 11. There is here,y expressly reserved to the Lessor,and as well to the Lessee,the right and privilege to convey,trans- fer or assign in whole or in part its interest in this lease or in the leased premises or in the oil and/or gas therein or pro- duced therefrom,but if the Lessor shall sell or transfer any part or parts of the leased premises or any interest in the oil and/or gas under any part or parts thereof the Lessee's drilling obligations shall not thereby be altered, increased or en- larged,but the Lessee may continue to operate the leased premises 10,Pay �d settle rents and royalties as an entirety. 12. In the event a well is drilled on adjoining property within.}a=__J_- 3__..( Ut ) feet of the exterior limits of any land at the time embraced in this lease and oil or gas is produced therefrom in paying quantities and the drilling require- ments as specified in paragraph 8 hereof are not 'uIly complied with,and the owner of such well shall operate the same and market the oil or gas produced therefrom then the Lessee agrees to offset such well by the commencement of drilling operations within ninety days after it is ascer,wined that the production of oil or gas from such well is in paying quanti- ties and that the operator thereof is then producing and marketing oil or gas therefrom.For the purpose of satisfying obli- gations hereunder such offset well or wells shall be considered as other wells required to be drilled hereunder. 13. The obligations of the Lessee hereunder shall be suspended while the Lessee is prevented from complying there- with,in whole or in part,by strikes,lockouts,actions of the elements,accidents,rules and regulations of any Federal,State, Mundcipal or other governmental agency,or other matters or conditions beyond the control of the Lessee,whether similar to the matters or conditions herein specifically enumerated or not. 14, The Lessee shall pay all taxes on its improvements and all taxes on its oil stored on the leased premises on the first Monday of March in each year,and..._...._ .____..........of the taxes levied and assessed against the petroleum mineral rights.Lessor agrees to pay all taxes levied and assessed against the land as such and of the taxes levied and assessed against the petroleum mineral rights.In the event the State,United States or any muni- cipality levies a license,severance,production or other tax on the oil produced hereunder,or on the Lessee's right to oper- ate, then and in that event the Lessee shall pay_. said tax and Lessor shall pay .of said tax. it 15. The Lessee agrees not to drill any well on said land withim_ 01?e'_Y? dr d f _._.(15Q feet of the now existing building thereon without the written consent of the Lessor. The Lessee agrees to pay all damages directly oc- casioned by its operations to crops on said land. 13. The Lessor may at all reasonable times examine said land,the work done and in progress thereon,and the produc- tion therefrom,rind may inspect the books kept by the Lessee in relation to the production from said land,to ascertain the production and the amount saved and sold therefrom.The Lessee agrees,on written request,to fiu-nish to the Lessor copies of logs of all wells drilled by the Lessee on said land. 17. All the labor to wa performed and material to be furnished in the operations of the Lessee hereunder shall be at the cost and expense of the Lessee, aafthe Lessor shall rtot be chargeable with 'able for,any part thereof; and the Lessee shall protect said land against: of every character arising from its opeWons thereon. t `� . •31. a�,essee aga/ees to abide by, be controYied by, and conform to the provisions of paragraph 11 of the surface lease between the Lessor and l Ge�rgiana W. Garrish$ dated January 1, 1946 which paragraph reads as follows: "That the right of entry upon said premises for purposes of prospecting and drilling for cil gasp asphaltum naptha, and all other minerals, together with reasonable right of way for road-nays over which supplies may be hauled to or products from any and all wells that may be operated as well as the right to lay and maintain any and all necessary pipe lines in$ on or over said premises is hereby reserved to the City. Provided, howsever$ that no derrick shall be erected more than 100 feet south of the north line$ or 100 feet north of the south line of said property herein demised without written consent of Lessee first had and obtained and provided that the City or ,Lessee in any oil and gas lease shall agree to ,remove any oil well derrick within ninety days after said well is on settled production, provided the roaduray's shall not cross runways, and pipe lines shall not cross runways unless other arrangement is impractical.to 32. Kotwithstandii7g any other terms and conditions of this lease, the royalties provided for herein shall be based on the average daily produc- tion of each well duri;ag the month. The royalty payable on each well producing 50 bbls4 or less shall be I/S. The royalty payable on each well producing at least 51 bbls. but not more than 200 'bbls. shall be 1/6. In ti:e event the average daily production shall be 201 bbls. or more, the royalty shall. be 1/ . In the event that Lessee shall not ex- ercise his option to return to the oil produced and treated as a part thereof the casinghead gasoline extracted from the gas produced$ as l provided in paragraph 3, then the royalty on said casnghead gasoline shall be the applicable part as above set forth. 1 w l wssee shall have the right at any time to remove from said land all machinery,rigs,piping„ 4':t i'tR;. pumlxng4 v ( her property and improvements belonging to or furnished by the Lessee, provided that such removal shall N, (• !ii 'eted within a reasonable time after the ter nation of this leW sr� Lessee agr es after err ination of this lease to 9 �' Plt3 e ail cone e e %'�5 e 118r zI3 a't �tl" P14-Ws `L c� r' Pt at "� `� t'SW.d �aRIN -n as gooN �©1�d� oh � en Uss .-1 20. If royalty oil is payable in cash,Lessee may deduct therefrom a propa,tionate part of the cost of treating unraerch- antable oil produced from said premises to render same merchantable. In the event such oil is not treated on the leased premises,Lessor's cash royalty shall also bear a corresponding proportionate part of the cost of transporting the oil to the treating plant.Nothing herein contained shall be construed as obligating Lessee to treat oil produced from the herein des- cribed premises. If Lessor shall elect to receive royalty oil in kind,such royalty oil shall be of the same quality as that removed from the leased premises for:Lessee's own account,and if Lessee's own oil shall be treated before such removal, Lessor's oil will be treated therewith before delivery to Lessor and Lessor in such event will pay a proportionate part of the ft cost of treatment. 21. Upon the violation of any of the terms or conditions of this lease by the Lessee and the failure to begin to rem ,r; 0 days.edy the same within_,S ._.__ .__.___.after written notice from the Lessor so to do,then, at the option of the Lessor, this lease shall forthwith cease an(!terminate,and all rights of the Lessee in and to said land be at an end,save and excepting two _. .. ( 2_) acres surrounding each well producing or being drilled and in respect to which Lessee shall not be in default,and saving and excepting rights-of-vvay necessary fou Lessee's operation:.,provided,however,that the Lessee may at any time after such default,and upon payment of the sum of _ Ten�y_.'w....".- "'._"...� (10.) Dollars to the Lessor as and for fixed and liquidated damages quitclaim to the Lessor all of the right,title and interest of Lessee in and to the leased lands in respect to which it has made default, and thereupon all rights and obligations of the parties hereto one to the other shall thereupon cease and terminate as to the premises quitclaimed. 22. All royalties and rents payable in money hereunder may be paid to the Lessor by mailing or delivering a check therefor to City Glee Huntington Beach, California__ _..__Bank at—� 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 ownership of the land or minerals covered by this lease,and no assignment of rents or royalties shall be binding on the Lessee until it has been furnished with satisfactory written evidence thereof. 23. Lessor hereby warrants and agrees to defend title to the land herein described,and agrees that the Lessee,at its option,may pay and discharge any taxes,mortgages,or other liens existing,levied or assessed on or against the above des- cribed Iand; and,in the event it exercises such option,it shall be subrogated to the rights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other lien, any royalty or rentals accruing hereunder. 24. If and when any oil produced from the demised premises shall for any reason be unmarketable at the well at the price mentioned in paragraph 8 hereof,the Lessor agrees ha such case to take and receive his 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 Iess than the price r which the Lessee may be receiving for its own oil of the same auality. 25. The words"drilling operations"as used herein shall be held to mean any work or actual operations undertaken 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 other necessary structures for the driL'ing Ut an oil or gas well,and by the actual operation of drilling in the ground. 26. On the expiration or sootier termination of this lease,Lessee shall quietly and peaceably surrender possession of the premises to Lessor and deliver to him a good and sufficient quitclaim deed, and so far as practicable cover all sump holes and excavations made by Lessee.Befor. removing the casing from any abandoned well Lessee shall notify Lessor of the intention so to do, and if Lessor within..-..!'�ft-�22-(11) days thereafter shall inform Lessee in writing of Les- sor's desire to convert such well into a water well,and for that purpose to retain and purcbPse casing therein,Lessee will leave therein such amount of casing as L�:ssor may require for said purpose,provided such procedure is lawful'and will not violate any rule or order of any official,commission or authority then having jurisdiction in such matters, and provided further that Lessor pay to U. ssee_fifty.___. (_0) per cent of`he original cost of the casing on the ground- 27. Lessee may at any time quitclaim this lease in its entirety or as to part of the acreage covered thereby, with the privilege of retaining _ t-Wo __.__(.2.) acres surrounding each producing or drilling well,and thereupon Lessee shall be released from all further obligation`and duties as to the area so quitclaimed,and all rentals and drilling require- ments shall be red aced pro rata.All Lands quitclaimed shall remain subject to the easements and rights-of-way herein- above provided for.Except as so provided,full right to the land so quitclaimed sliall revest in Lessor,free and clear of all claims of Lessee,except that Lessor,his successors or assigns, shall not drill any well on the land quitclaimed within one Aundred fifty �0 feet of any producing or drilling well retained by Lessee. 28. If this lease shall be assigned as to a particular part or as to particular parts of the leased premises,such division or severance of the r,aase shall constitute and create separate and distinct holdings under the lease of and according to the several portions of the leased premises as thus divide7i,and the holder or owner of each such portion of the leased prem- ises shall be required to comply with and perform the Lessee's obligations uuder this lease for,and only to the extent of, his portion of the leased area,provided that nothing herein shall be construed to enlarge or multiply the drilling or rental. obligatiorLs, and provided further that the commencement of the drilling operations and the prosecution thereof,as pro- vided ir.paragraph six hereof,either by the Lessee or any assignee hereunder,shall protect the lease as a whole. 29. T11is lease and all its terms,conditions and stipulations shall extend to and be binding upon the heirs, executors, administ_ .tors,grantees,successors and assigns of the parties hereto. 30. Any no4ice from the Lessor to the Lc- e must be given by sending the same by registered mail addressed to the Lessee at 60 . S. Hill Ste I3. * ,and any notice from the Lessee to the Lessor must be Elie ? :,y sending the same by registered mail,addressed to the Lessor at 010 Cit t°leY . $idT2UA91 t?Tl_A !t&C 1 'C .� f a•�. , IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed as of the date first hereinabove written. LESSOR LESSEZE `* �IT'Y OF fi N-41N9"Xd._f3�Cl�._.... ., .:.-..... t .... _.._ _ a........ ty el On thisru day _.._._..._., in the year nineteen hundred and a before me, � fit". z� . 'wS ._. _._. a Notary Public in and for the County of l` t'-.?� '_. .._. _.._. .,State of California,residing therein,duly commissioned and sworn, personally appeared known to me to be the person--._..,,whose name_-'-'--_.____ subscribed to the within instrument,,ant acknowl- edged to me that.._- _IIQ ......,__....executed the same. IN EWI'l Iti'ESS WHEREOF,I have hPxeunto set my hand and affixed m official seal.th a=and�rst above writtem Notary Publio in and for the =y of _Ct f?ag._ State of California Mr C12 M►fmni-kF i::`.s'Pr`41�73#.r1.Y'7.xVAS STATE ss. County of On this.__-_--_-_ day o __ _ _-___ ... in the year nineteen hundred before me,__ _____ „_. .._...__ »_ ,a Notary Public in and.for the County of___ _ ,State of California,residing therein,duly commissio r" ned and sworn, personally appeared _. Imown to me to be the person._..—whose name.___ -..-,.-,,subscribed to the within nstriunent,and acknow:- edged to me that._ ._—executed the same. IN WITNESS WHE,REOF,I have hereunto set my hand and affixed my official seal the day and year first above written. Notary Public in and for the County State of California i pp O61 i ! ?1 am M t'° 0 R, f o +a ? a O Ertl q A R t I 1 p 0 . STATE ss. County of.____._ } On th,s _ _. _-_day af. ._ �..�.... _.;.. .... ,.. �._ _: ,A.D.,19 -,., before me, _. �, _..� - ri. ,., _ .d ___ ,a Notary Public in and for the County ofr ri State of California,-residing therein,di fly commissioned and sworn., known to me to be the.—.... ._ .; _.w . . ..... .,, :.r... _ . ... ....,. ._ of the - the__._ executed the within instrument, known to me to be the persons who executed the within insfxu- ment on behalf of the.,...,.....,-�. ....._-.thereIn named,and acknowledged to me that such..,,......... .........»,_..<,,,....executed the sue. IN WYTT1Vl♦.SS WEMML71<`, bave hereunto set.bny hit2id and affixed my ai}sczal se the day and year liirst above written, Notary_i'ublze%n;,,nd for said County and State.: e Fit ,RW#; on, tho I:stb day Uf 440u&r�"y 57 s ,a O�Vto, coil and U'A as .S md° ard an pr .Into -and UOWAW , , and George 0 o f I� ov6`ti ho lands s,#Uat the comma cat Oram stato Or tatitorniat 40va"aid 40 :C01101 -`he -Ir t f t o I, .;f tho sue: .awl all that, portion SLWJ eat the s of Geottion 13 Towwohir 6' r� Wi IWa wlosi * � Q . eft now off` A OULvay Rai �� Will : a 33 it Book a, 50ods UM easq%sht fto roandpole ,0_ rodar asid, MY.Wr4c to 'the,surtaeo loase botvoen Lossor itd te argSLe said leaso h vtug UOU rocorded on F e y 201, 9% In 1�00k' 22 ko at page ' a? of ot:Ctdial Dsoo 4 . O "OrAnze 00uOr - A :eornUt an ry 4 -tho - ogt unaer al: ea e has lmri abalga6d U Vaeifia -Supper cc eta ties an Cyr#60A 0 *0 atiop$ and t 0400 OAd all,righto th r md Os'T UoWnt thereto are gow ut ,,d by sm d a�.�U, � � C�,gp*x4 :iva �aud, mm .w an4 -1� i .40 the 4004.ro Or the ca o Oxt . mild Faso for .a dditura2 po i#d or Au the tom 0110"01 to . la loaso. WartAIZ OuVfOd eagameas . "otes o4 -4 :6 teas � :' HUMUnstOn mar TARTOOISt it tt =filly a eO py .0 tw im the uplmv . ��' :Of HXZg 6020h . a wwl dipa .. � i-II)bta` iorl and the 4�-6 0-1 10 &A4 WAOt. :0,the 0 00 ut t Vatif I& supply Oooper tive 1. try "44id lob z' 6 .. 6a is C :. tended to a hua%7 iW �* Aoju— aid 1660010, here640b Ordi xated 4rid b 0040 ' 0 pis&aow for Swop' a Ott aab 'c + a dam " RW . � ` 4 is $ Of . sue II West it kAL w 'w ° fit • p s .: � 90 Z&Ot iWOMOtt TOV ivOV; .P*0s s .bed feed € of �116 611voina sc:c d YA line:of th* p u . " . in page ' s IT r>L ''Me t XM*1 - A�M tauxt, Saidproperty jftlso SO-91briin at a pdiAt 1077 feet $O#Oh- or the 06#t'O at sarca on .04 - goxb . a s T 01W to said link ss � pca , 4r$IWF> of " Asd t mth ijp �i> . .` . . r hi t � 210 Tb-;O.t oartala.=Ta f�a ' ago 120twooll ttxe c � lilmbinatOn : 0 10b 444,004tUVOSt Sandbl6atitg Compsq6voring Blogipuling at m rjoint 885 foot o ut u t'40"'poutor sad 4 poUxt eln o he -uorta aid wat ova? ,�—SaW M-u ' t k -14 h addticni 13° oo- easy. .� g6et .O a � . c aid pd .t per the t�rt6 Po��- ` bey a 4afovo yq yoA-L& Umo 74 ah 3wr+•4 Jbe - . Jon ,p 6 ald li to tie AwnLo ' bat $a a, 1. %" O ll.pia . subordinate 4ja4 r ., BeaCh to O tr of o � Of � s into, ea In �= proploylty hev ttqrl eapri,ea,) :-Tel i!m ZLq l vigeta, aww-L p. god pnalke U wow � S A IM & a thtuaW, gteV Fig �qd 254, 4, Z,. '0 a 'aj �. BAD a or wo w tit MhUh, ta true polint or UOSimilla t fro% k.' SA Yl - N` ` "S 4F S'�tJtirt ,. F ift.zr•�Wing of '89140: +` 1 . � ` fir. .rash t; � ' line Ulf N•Lw l4v 06tt u.y aet The z -rg � dOvxo o o �o Oi 21 + wa NW, T- cr : or 4 , k460 -tio 't6l_ - off` h . � a� a '� ' io kolt e � . t .953 ot r h � � .. �-mf# "' � �` x 3, „ r z NE RS,3.% . n a g . . .ide a Ill'' Oil acid Gao 10a,ze vas tirade: aj.d, t ntered into and bc•�VOO City of Et ntingtarl Beach,. a. vmnidip4l.aorpsrationv. as Iez0or j_ and George a# Uhal as 3.e,t*.a (twrorthgg the lands situata in, the Oomty of Ovano :S ter r lif.0 au describe€ a vhe S4 of the. Wa4 of the BE+ ,and all thp, ortion of the ST Est of s5ee�i�tx S � .� . e ` be s tath rly line of tha Chu vp F4 by 3 1 r Lard do to Rio 0', Tha:�pa by deed vec;�rded.. -,,in Book gage 9 a Bcid.s eonr€ s,, 4anect tii� x= a a O x to the surface lease. between, Leastr and Geergiana 'rish said I to v;ng'..bee .Veaorderd oil ,F6t - 28 1 .i�` t� 9 a Pa gs. `Le.ialeac�rd ae Cca�tx � a W esaee i iterest Under sA Ila.lease haa been assigned .ter.Pab�Aad. Supply Gaerpe at�ve, ax pregeti do:rp raw atien.q. ana-- sai4 .1-e6se u-nd all right thereto are, a co ed by Said. IIaeifia; Supply 'gpaper#iveg' And mrrnthe and it .aww ; xe desire or a .tt h =so; e: tsr said lease, for ark d ea : Period of, and to _14e0' v :. the, torts -t oecf to A*abOTd .A tO 'sa c 1eas tip'-aertat,4 s e as etnera s$ . ass d ' a tancs cede d 'the 1 r u ig s Beach, € T °€3 s ztaaa. aLree.d a bee the IVl7TiAY+ V '9i.dd4.tIn .•IJLitRj, '4i anti`�3h se az . Qr ► ese teat supply coopevg$uiv*i that said lea a shall I)e wad,is 46rolay extended to ordinaUd, and--MdO :,S0 - � a x' t o-V wewet Nine purposes-�. sad -easement be-iis desetlbod as 90116vtm. Co enci4g rt a point U41ch. is thelcomm �Orcev < eetivr_s l and etsalp +� "ch . ai 11, Ve at and seetiona 18 ar�d �� :��il p I,� uth�. ae. hest a$� 4t ccist ' t I� Wv 1 2454 fee 1-0 - hei.-Ob. pr�rceedi the Vestwrly� boundary off'.the Zaa H f. cif t . 6f ect can ?3 Township6 0ou h.,_Ran,e 11. West aB ac gigC:h 45 the. tue Point of I b e gunizlg . p0 f6ct easement for I�sWOT� purposd's- bed 103 -feet on either SiO of the lallowi . .ssctibed 0e)Iter1.ine: la the true poi nt .of be innil mays ar leas n; tea the i tetaeeti.nn with tho south prpt # neA proprt �armat . Sanitatlot District No., 11 .dersdr bed • the dead to that Dizttiat. Vgdoj aet M"3 �A Beak ,..$ pass � 3f Veen . the above 'd�sctibed property contains or$68 IT, I FA R MTUALILY AGRM-D thAt said Ief, c a jl be subo-rdInat arid' aub j ct to certain sul-i`aco Idases ds cr°bed as f ollOWS"I 1. That: certain,s faea ease I)et'Veell tee City o Hmtija ton B,.ma ate. Tph 01%ti h.a-ad D%ri Cavrisb, ovet property des63?Jbe da- fa1j--PVSS Be,ltn:tng at..a poligt IM fmAl St th df the: entv . cad sect xa 1,3 TQ'MS;h�.-P 6 SLOUthl anp I M0$t S« aBr s6II �. pbii t eing, can tho, �c�; t,�Z :aO hu'��i ua e, of said seat on 13 i, toe said line tO a pa n t � cl"PO fjhe tjue .Pcrt Of ba,inhirz, 0' iJ� ri3.d� Th udd V-- t. 2401 t et a.i ang the last af ore said, ,ling :to.a pciut:-- thence -S6Vth 126 lost: 1hh xs'; pend ,a '. 13ne to-t_ a�`� s� d pcat tc mt ei� ankh plsrpe�xcgi u `to the t aCaa .tl :1 ,.t :.the t- }j 4 That certait. urfaoe lease betwesn the GIA7 -of Huntington zelabh and Southwest, Sandblasting Companyvovering property descrl, ed: i.s ollows! tog ning .at a point 885 reet Sauth tho center of . ectozl, 130 ;Scutt:, age . West j S.B said point being on the n arth ond south qua- ter-,eetioa line of said Seetl on 13, thence east 5�5 :eet on e. lints thioh ' perpend�.eul.a. ` o said q rtav-seetton. jine to a ant said p6iiit being the true point'..of be« gindizag or this & scriptloh. Thence G et 00. 4 et along the p-volongetion of this last afcaresaad line to paint thence soub)a 100 Toot can a line perpendicular to :the. last aforesaid line t point thence test 100 feet on a line Uhich is perped&WuUr to :the last a.roresaid lane to a point's thence -north. 100',feet.. on a line whiob. is perpandfcdUx to thw last- zrosa 1e to" the erne point of,bogtnnUig. IT IS ZiMaR M UALLY AGMD. that said, leazo thin. be' -' su'bordina to and wobSect to a conveyance by the. city'Of vont ngto Beau. to Cau4ty Sanitation District No, 1.1 qr, its interest in- the pr l)"arty hereinafter described, with res,er- vatioja tf mineral ri ghts to the 03 tr.'but without right of zur.�ace 6mtr ,` The property 00 conveyed is desevibed as f ol3.ovs$ 00_mnnaing at a point why oh Is, the ce.Ater of 'Section 13,t Township 15 13cu . Range 11 !West I, �eB a�.t� X nO'de'd .g ` southeriy.S, 0 � 0 SO a distance cif' .WA 5_ Ji6et.� thence prooeeding Eatterly 11. 831 0 eetq tc a,print .can axe e 1y RA-1 ne t eet a .ch 1:s the true point or beginningx from this'' paint of'bejimninogj Procoadin . Easterly 5 , r � E 50 f at° 'the110e .PrtaOJOOin4l j5outhe'rIY "4 � f 0Fa1' S�,a# `! ' '" E" .`} Zr:i kG" ter . , 51 €# kY A) 150 r eet to the Ee s iy tune thencs .p eacee -trig o f eri along this RAT "an , d . ' Of re �.� . aC e t true Pout of bea of A v . . The abova described property contains 0,21 aeres s TO. cr_less cept :herea.' proviaecls, said 10ase and all t tee cone- tit rip and agroe ion-ts 't oreih contai e hall �c tl,PX Full f ore"O ande t +:RA3��(j7� Sr b .L TE W T.b ' BT STATE C` alwata.gdouzatyl,of ,a )341 SEABRID0341 khown to; - tip e the Iftygt and; TOIW known to me to be the taity CMi , or hIO mUl-if�i��l executers the t� �u�� a��zzaOwle .ger� � �.� � Op o �: titan ezewatad tho , Ow PAMI OU bim#9s3an Eknt�e .3vt{e:d;19r5`, SWE Off` Ir t . . .. < - ,. ear 0i Y a n r a S t 4kU : vie `. ' .t sae t � �� OT13bw kz€ 5, zz a:`�� td" et itsOf dV.,Igdgod to, die ,t).6 11'.6 OX Ot But) -arid Stato V � • XTENSION• OF OIL AND CAS LEAM sfiE , Sri �tne 1G5th`,day, of aiy, -1§52, a eertain tail and Oa'a Lease was Made and: entered into by and between City or Ft rating on Beach, a municipal corporation, as lessor aad Cleorge.`0. Atha as lessee,; covering$ the land.$ situated in the County of Orange, _State of California, descril�ed,as f'ollmaj to Wit.- The Sii of the Id4-f.• ref the SEA and all that portion of the $141 of the -SE� of` .Section 13, Township 6 lUth ,Range 11 ��a st, S.B.B. & ti. ,; lying north or the: southerly 11.ne of the land conveyed by Willow ,hand Go. to A C. TI.,orpe by deed recorded June• s3, 1917, iij Boo? 30�, page 69 of Deed�x Records of` orange C=Iaty, California, SUBJEGT, To easement for road purposes of records and SUBJECT TO the surface leasa between Lessor and GeorKlaria �T. ��:rrisht said lease having been recorded on February 281 1952 in Boo 2294, at Page 587 of Cf fic l al rxeeordz of Orange County, Ca lip forma,, and, TMREAS, the lesae,e t e interest under said lease has been assigned to Faa f'io SupnlY Cooperative, an Oregon -carper- a.tion., and Laid-lease and: all ri&IztI5 thereunder or inoidenv thereto are now o iliod sby said Paoifio Sipp1y CooperatIve, and �fi1H�IMS, t1je tem of said leave is :one dear from the 15th day, bf January, 1952 and the parties hgreto do- noit- desire to axtetd, said tens. NIIOWJ 'i'IMIWO Es it is mutually agrreed by and between the jesaor, City of )4v_t rgton Beach, and the assignee a;Id Miner of- the lessee-ts interest, Pacific.,o. Supply Cooperative., that said ?ease shall be and hereby, �.s extended for the' additional term. 6.P s .x {6) months from the 15th day af' ianuai'y, 1953.= Seve- and except- as herein provided said lease -and al-I yhe terms, conditions and agreements therein oontained shall pant nuze i)a full fordo and Offect + -DATED, Jaw-iary. 8, 1953. CITY OF; 1MT1NGT6X-.J3,WAj A miniciVal` Corporation, ATTEST: Ey LESSOR " C�.ty C irk PACIFIC, L=y coqpRATIVE $y 'ley Its ,Attorney -in Pac A,SSI�RM OV LESSM , L w 5 V s STAFF O"Iq CALMMILTA CQURY OF Oii this a of aanuaq 1 53 01 W4 I c y ub lax 4 1 ors �� .. ¢. ,z " knr�urn ttr � `be the C�t� ��e�� a �� c��4l,. 1 Orrp � tioj .jj 0.0k.00 lodged to W413h 100TVIDTOLVL Oni- r-Ocuted the. sa e* MS 'w hand aid t� `��dial $60..1, A4�+t`orasitTs;��ar<>=x�ir�s JLne I,Z��, S &T +trsa t �, reC :fir of ` 3un,,� 19531p, berore !uo a. x•€�a�i it an ��c �ts�a�� rid ¢ate�, ra��s� � ai c i ; pe tOLhvi thia I se.r snt As Ottaix W act a c c Supply ��ccp6�a+.ive j a c o is r z awl d c c ' loll. Pho tv Ouaty 4d w � � �� Y�nc�misstcri;xpirns,JuSt"�i�9�5 k AIL EXTBNTT04N OF OIL :AND GAS IXAS Vd3 MASg on the I$th days of January, 19520 a certain Oil and {lags lease was made and entered into by and between City of Huntington Beach, a. municipal corporation$ as lessor;, and George C. Atha, as lessee, covering the=lands situsted in the County of Orange, State of California, Described as follow: The SW of the of the SEj and all that portion of the t71� of the lil, of Section 13 Toimshi.p 6 Southp Range 11 'dlest, S.B.B.& M*a lying north of the southerly 11mes of the lard coa2veye d by 1113-low Land Co. to k, C. Thom by read recorded June 13, 1917, �n Book 302, pale 69s of Deed s, Records of Orange County, California; SUBJECT to easement for road purposes of record,, and SUBJECT to surfece leases and reservations of records aaid lease having been recorded on February 26, 1952 in Book 2294, Page 587 of Official Records of Orange County, California, and WHIMASs, the lessee's interest under said lease has been assigned: to Pacific Supply Cooperative, an Oregon Corporation,, and said lease and all rights thereunder or incident thereto are now craned by said Pacific i c Supp3.y Cooperative, and WHME.AS, acid lease was extended to January 150 15541 and it is now the desire of the parties thereto to extend said leasd for an additional period of six months. NOW `f MMFOR a it is mutually agreed by and between the lessor# City of 3iuntington Beach, a municipal corporation, and the assig_tiaee and owner of the lessee 's interest., Pacific Supply Cooperative, that said lease shall be and is hereby extended to July 15p 1954. 19.1 to DATEDs CITY OF FItM°lINOTON BEACH a municipal corporation O ATTEST: JMMr City- Clerk PACIFIC SUPPLY C.0(�P3�ftA , an Ore corpasation/11 r Its At raeey 'n Fact AS"SIGMM OF IS9S E R STATE OF CAI. mm'Ma s1 COUM OF ORANGE On this — day of 195 before me= a Kota Public in and for said County and State, personally appeared known to me to be the Mayor,, and known to me to be the City Clark, of the municipal corporation that executed the vithi n inatrsmsent, and aci.n vledged that such corporations executed sue. RotaryPublic in and or sal County and State STATE OF CA r )RNIA ) tr o a as. CO On this mot° f%day of f g 195 A. before , a Notary Public in and for said County and Strut, Personally- appeared GLEN DIAL„ known to me to be Us person whose name is subscribed to the within; instrmant so Attorney in Fact of Pacific Supply Cooperative , an Oregon corporation, end acknowledged to me that he exeduted the sasses on behalf of said corporation as such attorney in fact. ...r F; akd for said County anti State Pety CC�_;:rJsr'�r�Cx�c4s!aner„y 7.�if 1955 z; Lim r SANDBLAST & METALLIZING t s Li �cr�=irs�tEan f3*°acSz, i'ah�c:rr�� December 13, 1960 s 4:5qr Mavcr �,rnast H. OiPler Ref Leese of Land toi City Council Donald H. dampton DBA City Ha.l Sandblast And Xets,llizing Co. HL.ntington Beach, Calif. Edison Avenue Dear Sires: V,Y Present five year lease with tho City of Suntington Beach exlliret on June 1, 1961. 1 w.auld like to request that my lease be renewed for another period of five years an substantially the s&ne basis. I understand that the. parcel of land lying next to and east of my lease is designated as a -:rifling island. I further realize that a sizable partion of this drilling island has been lost clue to the County Flood Control ditch c-.tting across the corner. (Please see attached aketch) I believe that the remaining area of this island is still amply IFrge for -whatever drilling might be planned. During the latter part of October, 1060, T heard ru rs tt+ai my least wAs in Jeopardy due to sale of certain lands on the east side of the Edison l-tnt to the vAison Crt.. Bscauge of these rumors, I :gent to Mr. Doyle Miller, idrinistrn}nr,, t-i inquire 3?,out the future of my lease. Ms. Mil or confirme that the sale of I". d had been mare to the Edison 8n, ' at since the area of the drilling Msnd had been reduced by the. Flood ^..nntr-,l ditch, he would have to consult with Mr. 1�russ Watkins regarding the ;!-.'ling rights. YL-. Yi1!atr sent a letter tr Mr. *'a3tkins (copy enclosed) to arrange a, meeting "with Attorney Bauer, Engineer Whueler, Mr. Rampton imd myself in an attempt to determine whether or not it will be advisable to renew this lease." ,. . �, ., �- �,.,,,F, yf .. ..F y, >�?",- .. .. :'f •}'.,•- Ti.3ff ',r:P i'r.;,,,tve r,�.a -:.ti'=".�-'„v'}i'?2":.9: NO oL + , • t ,":l" �..� ;. 1,.-':n r' .. ;F.,-1 *i-;» r... ."'..I.te[Sr ol .- .. _ -e five .ne - iiTa.,. rY ..p a _,ry .x ', 'invxxc-tmeA..t.. .,�•� x' ,, , .:�<rP r .. . i� L PPi'P1t x-^Y bi v ?:' f .^.:? Nz.']�: !:ausr` grit y ,q t 1 { iA a.. 1. ^a C f, .x d T N A t 1.4 3 � o if,1 C u"i j4a% `..h- I.I i^z''iTd,rry�.e••��Ip:7rypy!}«,L$;,1' i.Fa•�'- ' 'ice 4i .1 CC'€�.�-' ��:. .ih, �� .'�iii `f�'; •,:T CetlaC:�fL 1.S.S3'� pE.anfe, q Ctn Y'4 QF=; t� '3 �. 1F)a il-' �;th +?'a it"R;,4 p. : ' 4 ��t rS`ii�x"lI . I 9u:. ltq. , inn n t t r 'n t: lag t, :.m-w r.T°..°1.� t.f^.tf? .�,.naie). `.'Ctl: '?I:� lace "x 13 1 1Ar r a 'i t,�_T-r. e.tttTi:i.on,, "-e' t-Ir In an !1 !em')C to e _, a -s; )r 'it SuJt i :'isable i,n —e-i .his on P'C'L2r ilf"f t, F,w P • `3:^I� y .f'H • t�v ,._�..i.^:,'Y Q'€ifr u;�.nv 'S'9:i.GSYb'aaYlSd�w(`ie"s L+" i - ...'"�:A;i..+�:.w3firN'+r.•«?r' 2 4 � & '� 10 �pi : r =. 0 OILWITS t. dn at U n -page 12 1941 . ,E 10, u i4ft, �4t . 15 . a" off Zhu i 18, 19 57 o b f_ 4- 2 . . 22 bps . AO 14 ,24 25 ` 2s b n w-A IRS ou pa '. � 25- a � � 'Plyq 4_ � • z 01 AV TO, hr to IA Z :City O w -p4tlU04-oh sit �� mo 10 a 4 a ` � to'W PYS 9t4;l 'A�'... WW' '*ro- vo W� to Nl " ""J.S4S.K •', ' $ � O .: ' - m doad AV-4 Otb=l 1Q `SY bb ik r rY U o"a"44 cm S � �+a> +�St i�` saTefi?Fa tj 13, 'U. siltm to ? o'ev. ft If 14 . . 1504 1s ^` 20 21 'Xs X02- fi 24 � ` 25 20 27 8 � , .o t k Awmeg qw . to oil 4.4as oompo Z. a � • � f vs li�3 g. 10 mix 12 13 �14 ! 15' 18 �' 22 2�. 24 x 28 �s. City of Ih4o*t;Ln4woI Deach STATZ 'ry Or IWE b r , oxoi ,. a- 4-i Paul G. Junes. ..�: . 6 � fix .. . .� Ut Boo-ch who tit t,W. withir) and 7 €M d d i e o W � -}gets ? � �� *C, 0 a -Cit IWO t 110 Wdg sty; 9 Mrxso, wiy n And 10 �- #iTs s a 12 a4s v�D) fir xs�Ear ina E'a��+a ps`t7rs:lac Suite sz�Cabfnrnitl 59Ez- 13 sS t + `' �3 Gtr Hu}i.flunficxta 9 a,3=,fiali, x 14 Conn or:LSO. ANGEIES 15 t, i£) 1Ltt 44y .0 8eptembo sap' : . 3 17 MCM g ds h 5 V � 19 ' 20 y 'Fablio QV 21 ` Jt9rta [ ' 22 STATEOF-CALIMVIA gad � . 25 x x ` its 26 � that , an 28 f r 29 30 w. 31 32 �. RT TS4 OjV . you% . , Woo c gip, .ta-b '",Vgbol 7 gV I C1N. Pry; i ILIPT ciEtfankspiroa mite 4010,j 11 M 12 a 7 Vie 41 ,�� 'Ar 13 14 oil. the p ati that,, ox outs t Wi ado � I � to, e .ba ;the perg, .o v" oxoO od tho. r . a a tv t 15 M. behd{ 1 y f �ty'x ti �i��sa�* �`yf.�yy��##�a qq�.��1. ��yya� 7,e�»o��3+�f�g��rt me.- �5 }�. '4P�l+y� ,S..6u3LGS:.'4t '+aaF�e. , F.s.7'n4FX.L+ L4Y '+' 16 `�`-W '.or _�� s�� c� tad its1. S. id oi VIM - my hard 18 1940 20 5. ' 4f� Commission expires 0anw* 21 F 4V ?VA 22 23 Id ' . . : * , . 24 41ter, Cal � -tot3 � Ew o moor.x 2s Sack 2s Taw 27 28 30 31 '�'�',t'Gamca�aY2a��ire,a?iFg�.stit jt?49� endmeut try Oil and OU Lass City of Hunti B acb STATZ OF CAL NIA 2 � t V. sp a O 'County. and .,V_ 'Pe.rsanal UM a pu Cogs =del>Ube''_ � s � � . t a 5 t �S 114, . in sue a t un vy, 4ordat b '-Said` M x i 6 Offioo of, die sma h�S'g 0 Ito-`Sobs P = s a s �� . 9 $iuth.F�bSd'bi�r4.�1. - 10 R.T. 04 vy 12 Tub 10 Jai nt mod.. ,ftiato 13ilIl,a leyf 14 ia2xoaueui.tiaui xp.rrs tlyp c5i1fl6 15 16 17 18 1S 20 21 22 23 24 25 26 27 28 29 30 31 32 ��t COWENT TO tb . :� bF, ,fie 5 c •P'bg 't 7 c . aid ar,' � €� t tQ ,ny�q�. pima 13�Giq.'M.'t+r W^a4 +9`+��"7' +'�F�^w A*1.�$m67MF,"hAA� 60G.&.itpi4 3 10 an � r� .'t U - Y as �s o AA 12 cs� i y aaxacaz 13 15 fib# - 0 OCtGber 16 ` 17 uat 19 STRI% tv, � OR 20 also 21 .t 0�t4ber . .. 22 44, 23a + erg ac $ �a gg 24 25 r ` 'ho� gktx ed the'S � 26 27 sa xid4WYBNi '. 30 •i�a� sKtr rs �.ta'au3.Jx dtl�is;;ijt nC�ra7a`.4��.Uir�h�'�"Fi>."rrcYq # , � 1 `.djj'�C::Lnn�SSuan h'cY+'sieb 711T•r 3�, f 4 3 S 3ty liaC[.�3tnrn3oa$su� z�ii{.t rz 2. ME MWEIT. IL AND kA L GAS t -dota bus e as at SAVIDBL;At Ai4D 1, ALLIz:rNG COMPAWI_ as the ovaer of leasehold inter-gists in and to the situated to the County of Orangot State of California,$ affected., by that certain Amen iaent to Oil and Oaa Laaza entored into -b� and between Cit., - of fi;wntingtoxi geaeb,, Lessor�, and rnreemazt 4. Fairfield sit all Les,ees,j reobrdeccl R06k page of Official Racor cis i in. t)).e office the County Recorder of said County does hereby consent 'try said Amendment and agrees to subordi;iate. his interest tlYerato wid to observe the rastr�ctions thersin. contained, The herei abovi referred to leasehbld interests of ,�U Gage sfere acquired under and by virtue of an unr000rded Leaso Mated July Ist q i0;61 from the City -or Huntington Reach., legsorj to Loyd Gage, deem business as 8=dblast and Metallizi1 Company, Lessee, IN UrTIMSS WMM. a this instrument '!a s been exeel�tod t'hi s 50 day of October -4:1, D GAGZ STATE CP GAbIPQR'NI.A. s COUNTY CEO' ORANGE. � On this ...:�W-day .oi K2 ,. rz l961s before men a �ota'ry Public In. and for sad � ezd State, personally appeared, ,LOY 7 CAGE doing, busl;ne�s as andb Pk a Total 3 ng CompaIV� 3r o4sra =to ihe tax .0a the person *erase na �g su�r�*ox�bed tti� t��a fax��: going instrumazit and Ackricnulodged that hi executed the i�amo�_ . y ,rsTt+ia�'��7�tzc w�,•'�3`^Y.�f3t�tk��7- " ,gGaltFnmia la'4'�C-UA* of C7sasc4 State ,.ly t;ua4atis7%icn T`.tp+*G'jana 26.J965 iu1`,Null 1TukstinSaav}1eac .Jul i OIL Ai'ID GAS LEASE THIS AGREEMENT, made and entered into this day of jANJARY, 1955, in the City of Huntington Beach, County of Orange, State of California,, BY AND BETWEEN CITY OF HUNTIINGTON BEACII, a municipal corporation, as Lesser, AND FREEMAN E. FAIRFIELD, RUSSELL B. WATKINS, and 3OSEPH A, BALL, as Lessee. WITNESSETH; That for and in consideration of the sum of Ten Dollars ($10.00) lawful money of "he United States of America, in hand paid. by Lesiae,= to Lessor, and other valuable consideration, the receipt and adequacy of all of ;which is hereby acknowledged., and in consideration of the covenants and agreements hereinafter contained to be kept and performed, Lessor hereby grants, leases, lens, and demises, and by these presents does gran., lease, let, and demise to Lessee, its grantees, heirs, successors, or assigns, the sole and exclusive right to drill wells for oil, gas, or other hydrocarbon substances under the demised premises and the sole 1, 9 Alk Act, and exclusive right to produce, extract, take, and remove oil, gas, and other hydrocarbon substances under the demised premises and the sole and exclusive right to produce, extract, take, and remove oil, gas, and other hydrocarbon substances from the demised prsmises suchh rights may be exercised only by means of wells drilled from the surface of a "drilling island". which is described by metes { and bounds in .Exhibit "A" which is attached hereto and made a part r hereof. The Lessee may construct, use and maintain tanks and machinery used in carrying on its operations on said land only upond I the "drilling island" The real property which is the subject of this lease, sometimes herein referred to for convenience as the "demised premises", is situated in the County of Orange, Stare of California, and is described in .Exhibit "A" which is attached hereto and made a part hereof., TO HAVE AID TO HOLD the same for a term of une (1) year from and after the date hereof and so long thereafter as ail, gas, casinghead gas, or other hydrocarbon substances, or either or any of them, is produced therefrom or drilling operations are being conducted thereon, In consideration of the premises and of the mutual covenants and agreements of the parties hereto -to be hereinafter kept and performed, it is hereby, mutually agreed as follows RMUL 1. loyalty: (a) Lessee shall pay Lessor as royalty on oil forty-seven and one-half percent (47.516) of the proceeds of all oil produced, saved and sold from the leased premises after making the customary deductions for temperature, water and b,.s. at the posted available market price in the district in which the premises are located for oil of like gravity the day the oil is run into purchaser's: pipe line or storage tank, and settlement shall be made by Lessee on cr before the 25th day of each month for accrued royalties for the preceding calendar month. At Lessor's option exercised not oftener than once in any one calendar year upon thirty (30) days' previous written notice, Lessee shall deliver into LessorTs tanks on the leased premises, or at mouth of well to pipe line designated by Lessor free of cost, Lessor's royalty oil, provided that Lessee may at any time purchase and take LessorTs royalty oil at said posted available market price. No royalty shall be due to the Lessor for or on account of oil lost through evaportation, leakage or otherwise prior to the marketing of the same or delivery to Lessor if royalty oil is being taken in kind, (b) For all gas produced, saver and sold from said land by Lessee, the Lessee shall pay as royalty forty-seven and one-half percent (47.516) of the net proceeds from the sale of such: gas, but nothing herein contained shall be deemed to obligate the Lessee to produce, save, sell:or otherwise dispose of gas from said hand. For the purpose of having gasoline extracted from gas produced from said land, the Lessee may transport, or cause to be transported, to a gasoline extractiDn plant located either on, said land or on other lands, 3. all or any portion of such: gas where it may be commingled with gas from.other properties. Lessee shall.meter such gas so transported and such meter readings, together with the results of content tests by recognized methods made at approxix;.rately regular intervals, at least once every month, shall furnish the basis for computation of the aniounts of gasoline and residue gas to be credited to this. lease. Gas used or consumed, or lost in the operations of any such plant, shall,be free of charge, and Lessee shall not be held accountable to the Lessor for the same or for any royalty thereon. Lessee shall not be required to pay royalty for or on account of any gas used for represssring any oil-bearing formation which is being produced from by a: well or wells on the leased premises, even though such repressurng is done by injecting such gas into wells not situated on the leased premises. (c) Any casinghead gasoline extracted from gas produced from said land shall, at the option of the Lessee, be returned to the -oil produced therefrom and shall be treated as a part thereof; otherwise the Lessee shall,pay to the: Lessor as: royalty for such extracted gasoline forty-seven and one-half percent (47,50116) of the net proceeds of the.sale thereof after deducting transportation and extraction costs, or of the Lessee's portion thereof if extracted on a royalty basis, 4, If there shall be no available market and/or no public or open market price for the gasoline at the place of extraction, then the Lessee shall be entitled to sell and,/or dispose of all the gasoline; for the best price, and on the best terms obtainable, but'in no case shall settlement of royalty be at a less price than that obtained by the Lessee for its portion of the gasoline, (d) The Lessee shall not be required to account to the Lessor for, or pay royalty on, oil, gas, or water produced by the Lessee from said land and..used by it in its operations hereunder, but it may use such oil, gas, and water free of charge, (e) All royalties and rents payable in money hereunder may be paid to the Lessor by mailing or delivering a check therefor to the City Clerk, Huntington Beach, California. No change in the ownership of the Tand or minerals covered by this lease, and no assignment of s entc or royalties shall be binding on the Lessee until it has been furnished with satisfactory written evidence thereof. (f) If and when any oil produced from the demised premises shall for any reason be unmarketable at the well, the Lessor agrees in such case to take and receive its royalty in kind, and should. it 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 qual ty. 5. f 2. Drilling Obligations: (a) On or before thirty (30) days from the date hereof, Lessee agrees to commence operations for the drilling of a well for oil or gas, (the surface location of which shall be on the "drilling island" and the producing interval of which shall be bottomed under any part of the demised premises) and prosecute the drilling thereof with reasonable diligence and dispatch until oil or gas is found in paying quantities, or to a depth at which further drilling would, in the judgment of the Lessee, be unprofitable,_ impossible, or impractical; or Lessee may at any time within said period terminate this lease and surrender the demised premises as hereinafter provided. No implied covenant shall be read into this Iease requiring the Lessee to drill or to continue drilling on said d emised premises or fix the measure of diligence therefor. (b) If oil or gas shall not be obtained in paying quantities in th- first well drilled, the Lessee shall, within sixty (60) days after the completion or abandonment of the first well, commence on said land drilling operations for a second well, and shall prosecute the same with reasonable diligence until oil or gas is found in paying quantities, or until the well is drilled to a depth at which further drilling would, in the judgment of the Lessee, be unprofitable; and the Lessee shall in like manner continue its operations until oil or gas in paying quantities is found,, but subject always to the terms axid conditions hereof and with the rights and: privileges to the Lessee herein given, 6. r (c) if oil or gas is found in paying quantities in any well so drilled by the Lessee on said land, the Lessee, subject to the provisions hereof and to the suspension privileges hereinafter sell forth, shall continue to drill additional wells on said land as rapidly as one string of tools working,with reasonable diligeu--e can complete the s ame, until there shall. have been completed on said land as many wells as shall equal the total acreage then held under this lease divided by five (5). The total acreage covered by this lease shall be computed by actual survey. (d)- The Lessee may defer the commencement of drilling operations for the second or any subsequent well .for a period not to exceed sixty (60) days from the date of completion of the well last preceding it. Except as herein otherwise provided, it is agreed that the Lessee shall drill such wells and operate each .completed oil well with reasonable diligence and in accordance with good oil field practice so long as such wells 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 sttuated,- but in conformity with any, reasonable curtailment program affecting the drilling of wells or the production of all oil and/or gas from said land, which the Lessee may either voluntarily or by order of any authorized governmental agency subscribe to or be subject to. (e) The words "drilling operations" as used herein shall be held to mean:any work or actual operations undertaken or 7. Q 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 other necessary structures for the drilling of an oil or gas well, and by the actual operation of drilling in the ground. 3. Offset Obligation; In the event a well is drilled on adjoining property within one hundred fifty (150) feet of the exterior limits of any land at the time embraced in this lease and oil or gas is produced therefrom in paying quantities and the drilling requirements as specified in paragraph 2 hereof are not fully complied with, and the owner of such well shall operate the same and market the oil or gas produced therefrom, then the Lessee agrees to offset such well by the commencement of drilling operations within ninety (90) days after it is ascertained that the production of oil or gas from such well is in paying quantities and that the operator thereof is then producing and marketing oil or gas therefrom. For the purpose of satisfying obligations hereunder such offset well or wells shall be considered as other wells required to be drilled hereunder. 4. Excuse from Performance; The obligations of the Lessee hereunder shall be .suspended while the Lessee is prevented from complying therewith, in whole or in part, by strikes, lockouts, actions 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, whether similar to the 8, 6 matters or conditions :herein specifically enumerated or not. Drilling and producing operations hereunder may be suspended while the price offered generally to producers in the same vicinity for oil of the quality produced.from said land is seventy-five cents (.75�) or less per barrel at the well, or when thez-e is no available market for the sake at the well. 5. Taxes; The Lessee shall pay all taxes on its improvements and all taxes on its oil stored on the leased premises on the first Monday of March in each year, and fifty-two and one-half percent (52. 516) of the taxes levied and assessed against the petroleum mineral rights. If taxes are levied and assessed against the interest of the Lessor, its successors or assigns, in the real property or against the petroleum mineral rights, the Lessor agrees to pay such taxes as are levied and assessed against the land as such and,forty-seven and one-half percent (47. 516) of the taxes assessed against the petroleum mineral rights. In the event the State, United. States, or any municipality levies a license, severance, production or other tax on the oil produced hereunder, or on the Lessee's right to operates then and in that event the Lessee shall pay fifty-two and one-half percent (52.51o) of said tax and Lessor, its successors or assigns, shall pay forty-seven and one-half percent (47. 5%) of said tax. 6. Lessor Reserves Right to Use of Surface: (a) Notlhig in this lease shall be construed to give Lessee any right to use the surface of the demised premises for any purpose whatsoever, except that portion 9e AIL of the demised premises .herein designated, referred to and described F as the "drilling island", and Lessor hereby specifically reserves the right to use and occupy the surface of the demised premises (except the "drilling island"') for any purpose which is not inconsistent with the rights herein granted. (b) The Lessor did heretofore convey real property by deed recorded September 4, 1952, in Book 2379, Page 30, Official Records of Orange County, California. The description of said parcel of land is hereby incorporated herein by deed reference. The Lessor expressly reserves the right to locate a well on the surface of the demised premises, including the surface of the "drilling island", and the right to drill such a well into the parcel of the deeded lard described in this subdivision, and the right to produce oil and gas from said parcel of deeded land t1wough such a well. The rights so reserved may be assigned, set over, conveyed or exercised by any lessee or assignee of the Lessor. 7. Lessee Shall Protect the Land from Liens: All the labor to be performed and material to be furnished in the operations of the Lessee hereunder shall be at the cost and expense of the Lessee, and the Lessor shall not be chargeable with, or liable for, any part thereof; and the Lessee shall pr ;cect said land against liens of every character arising from its operations thereon. 8. Right of Inspection: The Lessor may at all reasonable times examine said land, the work done and,in progress thereon, and the production therefrom, and may inspect the books kept by the ,Lessee in 10, relation to the production from said land, to ascertain the production and the amount saved and sold therefrom, The Lessee agrees, on written, request, to furnish to the Lessor copies of logs of all wells drilled by the Lessee on said land. 9, Lessee Shall Indemnify Lessor; Les:ee hereby agrees to inderinify Lessor against and to hold Lessor free and harmless from any and all liability loss, public liability, property damage, litigation, attorneyst fee, and all costs of every kind and nature arising out of any action brought against the Lessor„ either jointly or alone, regardless of the outcome of such suit incurred by reason of Lessee's operations hereunder. 10. Landscaping of Drilling Island: Lessee agrees that no derrick shall remain standing on the "drilling island" aftea drilling operations are completed, and that all surface structures which r i t are essential to the production of oil or gas from the wells herein r- provided for which are located on the "drilling island" shall 'be adequately landscaped in accordance with a plan of landscaping io be submitted by Lessee and approved by Lessor., 11. Removal of Machinery: The Lessee shall have the right at any time to remove from said land all machinery, 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 a.fier the termination of 11,• this lease. Lessee agrees after termination of this lease to fill all sump holes and other excavations made by it. 12. Dehydration Charges: If royalty oil is payable in cash, Lessee may deduct therefrom a proportionate part of the cost of treating unmerchantable oil produced from said premises to r ender same merchantable. In the event such oil is not treated on the leased premises, Lessons cash royalty shall also bear a corresponding proportionate pabt of the cost of transporting the oil to the treating plan'". Nothing herein contained shall be construed as obligating Lessee to treat oil produced from the herein described premises. If Lessor shall elect to receive royalty oil jai kind, such royalty oil shall be of the same quality as that removed from the leased premises for Lessee's own account, and if Lessee's own oil shall be treated before such removal, Lessor's oil will be treated therewith before delivery to Lessor and. Lessor in such event will pay a proportionate part of the cost of treatment. 13. Default Notice: Upon the violation of any of the terms or conditions of this lease by the Lessee and the failure to begin to remedy the same within.thirty (30) days :.after written notice from the Lessor so to do, then, at the option of the Lessor, this lease shall forthwith cease and terminate, and all rights of the Lessee in and to said land be at an end, save and excepting five (5) acres surrounding each well producing or being drilled and in respect to which Lessee shall not be in default, and saving and excepting rights of way necessary for Lessee's operations; provided, however, that the Lessee may, at any time after such default, and upon payment of the sum of Ten Dollars 12 ($10.00) to the Lessor -s and for fixed and liquidated damage;, quitclaim to the Lessor all of the right, title and interest of Lessee in. and to the teased lands in respect Lo which it has made default, and thereupon all rights and obligations of trz parries hereto one to the other shall thereupon cease and terminate as to the pre niises quitclaimed. 14. Quitclaim Upon Termination of Lease: On the expiration or sooner termination. of this lease, Lessee snail quietly and peaceably surrender possession nf the prendses to Lessor and deliver to him a good and sufficient quitclaim- deed, and so far as practicable cover all sump holes and excavations made by Lessee. 15. Right of Quitclaim: Lessee may at any time quitclaim this lease in its entirety or as to part of the acreage covered thereby, with the privilege of retaining five (5) acres surrounding each prod3-icing or drilling well, and thereupon Lessee shall be released from all further oJoligations anal duties as to the area so quitclaimed, and all rentals and drilling requirements shall be reduced prorata. All lands quitclaimed s-.al? remain subject to the easements and rig' is of way hereinabove provided for. E;..eept as so provides?, full right to the land so quitclaimed shall revert in Lessor, free and clear of all claims of Lessee, except that Lessor, its successors or assigns, 6hall not establish a producing interval in any well on the land quitclaimed within one hundred fifty (150) feet of the producing interval of any well retained by the Lessee, 1.3, own ago=; 1.6. Subsurface YJ ..t of Way: (a) The Lessor grants to the x.,essee, its successors, assigns, licensees or permitees., a right of way through the subsurface of the demised r 'emises for wells which are surfaced upon lands outside the boundaries of the demised premises and are drilled into and through the demised premises so as to produce oil and gas from lands lying outside the vertical boundaries of the dt.mised premises, (whether said lands from which oil and gas is being produced are u_'ands or lands beneath the marginal sea), (b) The term of any easement established as herein provided shall be for the term of this lease or for so long as oil, gas or other hydrocarbon substances are produced from and,+'arough any well using said subsurface right of way, whichever is the longer. (c) The Lessee, its successors, assigns, licensees or permitees, shall pay to the Lessor two percent (216) of a l oil and two percent (216) of the proceeds received for gas, gasoline and other hydrocarbon substar..ces produced, saved or sold from any well using said subsurface right of way. Said royalty shall be computed and paid as provided above in paragraph I. 17. of the S`�rface for Drilling Wells Into Other Lands, (a) The Lessor grants and conveys to the Lessee thL .right to drill wells from the surface of the "drilling island", which is descrir)ed in Exhibit T A r s.ttached hereto, into lands rather than the demised premises so as to produce, a ;, gas and other hydrocarbon 14. substances from lands lying outside the vertical boundaries of the demised premises; together with the right to construct, use and maintain on the surface of the "drilling island" tanks, machinery and other structures which are required to produce oil, gas and other hydrocarbon substances from lards lying outside the vertical boundaries of the demised premises, (whether said lands from which oil and gas is being produced axe uplands or lands beneath the marginal sea), (b) The above described right to surface wells on the "drilling island"`, which produce oil, gas and ether hydrocarbon substances from lands lying outside the vertical boundaries of the " dexrdsed premises, shall continue for the term of this lease or fcr so long a time as oil, gas or other hydrocarbon substances are being produced, saved or sold through wells so drilled, whichever term;is the longer. (c) The Lessee shall pay to the Lessor a royalty of six percent (616) of all oil and six percent (516) of the proceeds received for gas, gasoline and other hydrocarbon substances produc�:-U, saved or sold from any well drilled and maintained:with its surface location on the demised premises and its producing interval beneath hands lying outside of the vertical boundaries of the demised premises, (whether said lands from which oii and gas is being produced are uplands or lands beneath the marginal:sea), Said royalty shall be comp ad and paid as provided:alcove in paragraph 1, 18. Para raph Headings; Vie headings of the paragraphs of this agreement are inserted for convenience only and are not to be considered in construing this agreement. 19. Restriction cn UnitiLation: The Lessee shall not pool the demised premises with other lands for operation under a c ommunity lease or unit agreement., unless compelled to do sc by governmental authority, without the written consent of the Lessor. 20. Cov:nants are Continous: This lease and ali its terms, conditions and stipulations shall extend to and be binding upon the heirs, executors, administrators, grantees, successors and assigns of the parties hereto. 21. Notice: Any notice from the Lessor to the Lessee must be given by sending the same by registered mail addre--sed to the Lessee, c/o Russell B. Watkins, 1502 E. Burnet Street, Long Beach. 6, California, and any notice from the Lessee to the Lessor must be given by sending the same by registered mail addressed to the Lessor, c/o City Clerk, Huntington Beach, California. IN WITNESS WHEREOF", the parties hereto have cnw'ted this agreement to be duly executed as of the date first hereinahove written. LESSOR LESSEE 16. 4 MIN STATE OF CALIFORNIA, � SS: COUNTY OF LOS ANGELES. On this 24th day of JANUARY, 1955, before me, GLADYS GUEST, a Notary Public in and for said County and State, residing therein, duly commi:ssed and sworn, personally appeared FREEMAN E. FAIRVIEIX, RUSSELL B. WATKINS and JOSEPH A. BALL, know-, to me to be the persons'whose names are subscribed to the within instrument, and acknowledged to me that they execute3 the same. WITNESS my hand and official. seal. Notary tic in and for aid Cota ty I'd State. My Commission Expires I ay 21, 1955; STATE OF CALIFORNIA, SS: COUNTY" OF GRANGE. ) On this day of JANUARY, 1955, before me,. a Notary Public in and for said County and State, residing therein, duly commissioned and. sworn, personally appeared knotun to me to be the and. , known. to me to be the of the City of F'untington Beach, the municipal corporation that executed thy: 'writhin instrument, known to me to be the persons who executed the within instrument on behalf of the corporation therein named, and acknowledged to me that such corporation executed the same. WITNESS my hand and. off Dal seal:. Notary Publif, try and for said County and. State, My Comm-Uss on Expires: 1. EXHIBIT "A" That portion of the South Half of the Northeast Quarter, of Section 14, Township 6 South, Range 11 West, S.B.B. & M., described as follow3: PARCEL I: Beginning at a point in the Northeasterly line of the right of way of the Southern Pacific Railroad Company as granted by deed recorded December 20, 1905, in Book 123, Page 96 ox Deeds, which point is 20 chains South of the North line of Section Fourteen, Township Six South, Range Eleven West, S.B.B. & M. ; theice East along a line that intersects the East line of said Section. Fourteen at a point 20 chains South of the Northeast corner tb^~eof, 2426.53 e feet to the East line of said Section Fourteen; thence South . ,�g the East line of said Section Fourteen to a point in the Northeasterly line of said right of way of tLz Southern Pacific Railroad Company; thence Northwesterly along said Northeasterly line of said right of way to the point of beginning. Excepting therefrom that portion described es follows: Beginning at a point at the East line of said Section Fourteen, 1056. 69 feet Soutl. of the Southeast corner of the Northeast quarter of the Northeast quarter of said Section Fourteen; thence South 890 16= West 100 feet, more or less, to a point in a line parallel with and 100 feet West of the East line of said Section Fourteen and being the true point of beginning of this description; thence continuing South 890 16T West 347. 14 EXHIBIT "A"-L feet; thence South 360 54e West 347. 14 feet to a paint North 360 54t Bast 40 feet from the Northeasterly line of the 60 foot .highway conveyed to the City of Huntington Beach by deed recorded February 16, 1931, i i Book 455, Page 400 of Official Records; thence South 530 06' East, along a line parallel to and. distant 40 feet Northeasterly from said Northeasterly line, and along a line parallel to and distant 50 feet from the Northeasterly line of Parcel 2 as described in the deed to the State of California, recorded June 11, 1936, in Book 826, Page 379 of Official Records, 604.31 feet to the beginning of a curve concave to the Northwest having a radius of 50 feet and a central angle of 1270 381; thence Northeasterly along said curve 111. 38 feet to a point in a tangent, which is parallel to and 50 feet Westerly of the Westerly line of Parcel 1, as described in the deed to the State of California; recorded June 11, 1936, in Book 826, Page 379 of Official Records; thence North 00 441 West along said parallel line and along a. line parallel to and 50 feet Westerly from the Westerly line of the parcel of land described as Parcel 1 in the deed to the State of California, recorded June 3, 1936, in Book 825, Page 475 of Official Records, 604. 31 feet to the 4rue point of beginning. Said land is shown on a .Map filed in Book 17, Page 35 of Record of Surveys in the office of the County Recorder of Orange County, California. SUBJECT TO: 1. The easement for roads, aqueducts, ditches, pipe lines or other conduits of water over a strip of land 20 feet wide alone, adjoining EXHIBIT srA"-2. AL each side of the Section and Quarter Section lines. 2. The easement for street purposes over that portion of said land included in Hampshire Avenue 60 feet wide on the East. 3. The right of way and incidents thereto for State Highway purposes over a strip of land 20 feet ride, being adjacent to and contiguous with the West line of Hampshire avenue, 60 feet wider and over a strip of land 90 feet wide adjoining and northeasterly of said right of way of the Southern Pacific Railroad Company; a,s conveyed to the State of California by deed recorded June 3, 1936, in Book 825, Page 475 of'Official Records, and by deed recorded June 11, 1936, n Book 826, Page 379 of Official Records. 4. The right of way and easement for construction and maintenance of a drainage district pipe lint as conveyed by deed :from. City of Huntington Beach, a municipal corporation, to Talbert Drainage District, recorded October 13, 1950, in Book 2087, Page 385 of Official Records. Said easement being 20 feet wide, t;ie center line of which is descriued as follows: Beginning at a point in the East line of the Northeast Quarter of Section Fourteen, TownQhip Six South, Range Eleven West, S.B.B. & M., said point being located 1986.00 ;feet South of the Northeast corner of said Section Fourteen running thence vest 945.00 feet along a line parallel to EXHYB1T "A.',4. the North line of said Section Fourteen; thence North 666 feet, more or less, along a line parallel to the said East line of Section Fourteen to a point in the North line of the Southeast Quarter of the Northeast Quarter of said Section Fourteen, the side lines of said strip being prolonged andjor s hortened try make a full 20.00 foot wide easement. 5. The right of way and incidents thereto for State Highway purposes as conveyed to the State of California by deed recorded July 1, 1952, in Book 2351, Page 5 of Official Records, Said easement is located within the following described parcel: Beginning at the intersection of the Northeasterly line of State Road VII-Ora-60-HtnB., 90.00 feet wide, with the West line of Hampshire Avenue, 100. 00 feet wide, said West line being 50.00 feet Westerly from the East line of said Section; thence along said West lime, North 00 40' 00" West, 45.00 feet; ¢.hence South 740 381 34" 'West 45.03 feet to said Northeasterly line; thence along,said Northeasterly line, South 530 OV 30" East, 55.00 feet to the point of beginning. Drilling Island: 'THAT PORTION OF THE SURFACE OF PARCEL 1, which is referred to in this lease as a "drilling island", is described as follows: Beginning at a point on the East line of said Section 14, ! said point being the Southeast Corner of the Northeast Quarter of the Northeast Quarter of said Section 14; EX£IBIT "A"»4. thence Westerly on a line which has a courst of S. 890 431 W. 480.00 feet to a point; thence Sou'Unerly on a lane which has a course of S. 0o 44T E. 30.00 feet to the true point of beginning of this description thence Southerly on a line which has a course of S. 00 44' E. 250.00 feet to a point; thence Westerly on a line which has a course of S. 890 43T W. 803. 84 feet to a point; thence Northerly on a line which has a course of N. 00 441 W 250.00 feet to a point; thence Easterly on a line which has a course of N. 890 43' E. 803. 84 feet to the true point of beginning, PARCEL 11: All right, title and interest which the City of Huntington Beach may have in that portion of State Highway 101 beginning at its intersection with First Street: in the City of Huntington Beach; thence Southeasterly along the course of said State F...ighway 101 to the Northerly boundary of PARCEL 1. PARCEL HE All right, title and interest which the City of Huntis-igton Beach may have in the right of way of the Southern Pacific Railroad Company lying Southerly from PARCEL I, beginning with the Easterly boundary of Section 14, Township 6 South, Range 11 West; thence Northwesterly along the course of said Southern Pacific Railroad Company rig:.,, of way to the Northerly boundary of PARCEL I. i EXHIBIT "A"-5. PARCEL lV;, Beach frontage lying adjacent to ar,,d. Southerly of a part of the Southern Pacific Railroad Company right of moray which was acquired by the City of Huntington Beach by deed from Mills Land and Water Company, a:s grantor, recorded in Book 945, Page 577, Official Records of Orange County, California. EXHIBIT "A"-6. z aVISSM14 S. vsT OV Zoa L9.51. : .nook u"940 rNP SST, oulo 0'as of oramo co * s softg mna an wick•por0og 0 V44 !Au AKb'.-d"'' the ar y liol Of the luua Zooms 3.044 Page 6% of Omu t' S'V9.T.:CT V1, pacomort goy° vml a "'HY=XNr hlm otwticv'lo''wao 7x ii,' yt3A 'ilt 1p f444 rr lin tW awy �a drolod m 'FOU on The rodwiag ou AU4 gas* 04 4 Porto ala. t � - WO-I WO-IM4 oAd Oil wid G Lowse iss a .th.0,dolly. . Para AN a &44 1 4r: ao y to The leas leasto haii as ti t �M a a Ott 040 ILVO-404 (b) tho It'some abonno roe therm o wenouthe prpmiopor VIA vent �+ r f Of wm � �€8 , 6 O of the prvml000v or-w* M fob, so%ho -of tU �8m#h bo,,mdavr ot t4o pram" .11 4404 you Or woos$d; alft W, #, 4 go Ao. PrO Us. to*.10MAMW 4 e logoo 4goolwa to 09.oat podh. wo . iolosclo# ��. I . . s: Ask ?OK4Ali4 a era �r�a �,jEM!�,-d w#M5 W�14�•40wt WYi�S W�1X. 4; 59tu ' by ma u a kwavi-ju uwgsoos br saes in, 404= t 3a vastovl the z o= v of tbv -a0zMA,004 'fir,,tho 4varm Zaazor te,not amiafipA 0- last Urx v ad faylaxoolaqo the p s V4 X:t. "Warts , 'OtUaa 4a � r;..°#, L�� ° :� �$�L� S�E�� $RANI:"t ws�•".Y4✓h 'w 'a9:V W rs.. t!�#t�,�d-s t W.-O f"vO'o aud 44 Kd+ i.qiF Ri4F.+'i.+4F�a'i rl" i4 04o4 ia oo*r aad tho S a o M#ploy I -Olutow � omk sxxaar # : - �;F'w'.v y�$t4Ym'F✓�4`e,I�R �y11'dfXW V�G lai�k'$V� M35i? I4�v$'$.s�b.R.. {��VF3 40 Ur"Our to SUO lapl A at-arface ot orauge, state lot c if4rala, harotorolto uquired UYI*hoau U#40r � the Oil od Gas Lt uo# Amed JQnmry I # rofovrA4 too tompUl a Sowh uu Am torthwoot rt *t to tdot# . a &. M. :w out, t a utymogt04- 404,q North of tho south*VI7 Hue of tluolo . " 13. 19 '" in Book 41 'ti4t xov*:zeta to at tt:Pav Undo a dozoitwd. 1 y r uta- t I? pt k a} and 410a4luatio a,Wd 00 0 : o$ 4atoa 4wm=7iM-$ We Aroftdrma W OU-a os Librioa to be duly,a cu .ot the day 'a'V 0-fat above witton. CITE * NTIVII'Ma gz-4rm arauq yMe- " _,I ........... ATLAIRM"vC,Jun, c-ozmpmm taflm' * a _ f Ads hoot obroftsott 444 441Y00 too, r �knd Cod im 4otora$oita Al=u�nfO--A A � Loud wv4wroa W L"�! � icier tiP lfisA F'Ai°�}heW 4 ..tie5u i"*1pI4 al+t now wy4f�fflos 'C ar x - V44 or a fi 'remit kUbV4 W=01 to 140 the c 0;1 ° lallou tuw psi' x , ruwmt.rum 0a 1i ` Ids um ". _ € ,A .e . 'Rp rA4PL,4jQn f:xp"eras mama 10,z?5g STAT4 Or tIALMMMA, COUNTS M , ay 1 � ' e . uto wt to�4 �county agd swe". J�wlgo,!,Aa)�Aop�kurod PASUBMAN rAIRIP Oad RUM TAMSt . � �rx m. an STA Tit OV CALWIMNO-Aw po #• � a � t ta,x4i to'bra the tvza# 4400 amok Arm es+ th wlelwmmt Oia �044 Vh t 0A the moo... ,J h e &TAME, OFF CALM-MUM, r t�� 1.9 Im m a w tha itaw-y-Ac ct*;4-0 am#.: t o g z � balarn me, tu vZ'�"�'Au. #z of', a'44�1'07 $a 0ty to be the "y ou;ida t,* and 't),5 t�.q � � jib,A to .'kr. -b44&i s� � �. i0�+�. t e a:& � ,�^�ia.4��h E'!✓ #Rii�+' �,r#•„N r�!ulY '�:k�,d.� k �i�iA��L"T1.�'R��+' 'rF,��M�`,. .: that 4 o-�'r6 tot *. 'idi;Ziu it%'? wumd- ' t'v wo%Y o 6-UP ilm who ox*cuter. wM Ar;t$u=2o% f aclmovAvA4pd to mo that v. 1 a ox 'a-d th6 ma. ara a«I s� l a, °s I µy Jew/.g tvmr taz',..ax , .�-w' #.si., wr 4.�.'�Sk a`.a a. ! STATE OF COVXTY OF' L00 1111tr `L F parson zhoo d tho lviwa us "'Z Q t.AM- tlmt hr, ageoutod the sp-ma. ; NZ � STAB '= 91 xUrmim�"t a,OUR Ir or 1.1.0%Oro= : MO MAO `GP��g''...siC �aC Wr taly lx.4 i" OU4.-c *oat. r t - 10894 AMENDMENT TO OIL AND GAS LEASE 1 TUIS AMENDMENT TO OIL AND GAS LEASE is made and 2 entered into this ^_ day of OetEr�he�* , 1961_Qt , 3 by and between CITY OF HUNTINGTON BEACH, a. municipal corporation, r 4 as Lessor, and FREEMAN E, FAIRFIELD and RUTH FAIRFIELD, husband x 5 and wife; RUSSEL7 B. WATKINS and DELORES WATKINS, husband and 6 wife; J. W. WOOD, a single man; ATLANTIC OIL COMPANY, a corpor- 7 ation; LES-CAL CO., a co-partnership; and LESTER CALIAHAN and 8 RUBY CALLAHAN, as Trustees under the provisions of that certain 9 Declaration of Trust dated July 17, 1941, recorded Narch 14, 10 1956, in Boole 3437, page. 3 of Official. Records, as emended b•r 11 Amendment No. 1 to Lester Callahan Trust, dated December: 29, 12 1941, recorded March 14, 1956, in Book 3437, page 21 of official � 13 Records, both in the office of the County Recorder, County of � 14 Orange, State of California, as Lessees by Assignment in 15 Possession. 16 WHEREAS, on January 15, 1952, the City of Huntington, 17 Beach, a municipal corporation, as Lessor, and. George C.. Atha, ' is as Lessee, did enter, into an Oil and Gas Lease which was recorded ).; 15 on February 28, 1952, in Book 2294, page 587 of Official 'Recozas 20 in the office of the County Recorder, County of Grange, State of 21 California, and, 22 WHEREAS, Lessees by assignment, individually and 23 collectively, represent and warrant that they own all of Lessee's 24 interest in said leasehold estate, subject only to certain .out- 25 standing overriding royalties of record, and, s 26 WHEREAS, by an rsstruuent dated July 27, 1953, recorded 27 April 14, 1954, in Book 2709, page 459 of Official Records in :•. 28 office of the County Recorder of said Orange County, execute;; oy 29 '' tLe City of Huntingtotn Beach and Pacific Supply Cooperative, said 30 Oil and Gas pease:vas modified and extended, and, � 31 W M$- by an Agreement dated December 21, 1953, 32 ' recorded April'.. 14 19541 in Book.,2709`, Page 463, of said Official Amendment to Oil and. Gas Lease City of Huntington Beach �C�� ;�<c�'� Freeman E. Fairfield, et al.; bmJ __ 9 ._ Y 1 Records, said Oil and Gas Lease was extended, and, 2 WHEREAS, by Amendment to Oil and Gas Lease dated 3 March 21, 1956, recorded March 6, 1957, in Book 3827, page 265 4 of said Official Records, executed by the City of Huntington i 5 Beach, as Lessor, and Freeman E. Fairfield, et al., as Lessees, 3 } a said Lessees dial release and quitclaim to Lessor all surface 7 rights, together with all subsurface rights to a depth of 500 � . t 8 feet below the present surface of the real property hereinafter 1 9 described and designated as Parcel. 1, a-rid other lands, whi.caa 10 said Parcel 1 is more particularly described as follows 11 The West 200 feet of the East 500 feet of tht � North 200 feet of the South half of the Northwest � 12 quarter of the Southeast quarter of Section 13, ` Township 6 South, Range ll West, in the Rancho "Las 13 Bolsas, as shown on a map recorded in Book 51, page 14 of Miscellaneous Maps in the office of the 1.4 County Recorder of said Orange County. 15 NOW THEREFORE, it is mutually agreed by an4 between � 16 's the, parties hereto that the rights released and quitclaimed under 17 Paragraph 2 of said last mentioned amendment are hereby restored 18 to the Lessees insofar and only insofar as said rights apply to � ! 19 the real property hereinabove described and designated as I 20 Parcel 1. 21 Except as herein provided, all the terms, covenants i 22 and conditions of said Oil ,and Gas Lease, dated January 15, 1952, 23 as the same has been amended and extended, shall remain in full f 24 i force and effect. 25 ! IN WITNESS t�''FiER:EOE, the parties hereto have caused a 26 th.+:s Amendment to Oil and Gas Lease to be duly executed as of 1 27 the day and year first above written 28 i' 6 CITY ju HUNT ON EAC I� ! C + f 29 ,� '_ By MAyor 30'• 'TES��`� t 31 ii•' �t er 32 ! LESSOR Jb a 4 Amendment to Oil and Gas Lease ti� � � ,•'. �'��?. City of Huntington Beach ul3.59 15 Freeman E. Fairfield, et al. , !: t fir 2 7Feeman h Hairlie 3 } u 31r `.�,eT 5 'ku�s e. >a t 1 .n�sue/:/pyf L 1 Y• at 7 ' 8 Wood ;. 9 a4 ATLANTIC OIL COMPANY, a corporatioif .' 10 y 11 i; B be s er n Fr�--UdTefit 12 Ey ,' 3 1S'�axlt r .t.�• , 1.3 i. Secretary 14 LES- C , a -o_partrship 15 16 i� ster, a" Zp " the Jr 17 iJfe e ' Cal a han J:r, co rtner { 18 19 a an, rustee 20 J Mn l.rustee 21 , LESSEES 22 # x A. 24 �{ 25 ' 28 27 Y 28 t f� 29 30 I � a� f 31 32 i Amendment to Oil and Gas Lease l; City of Huntington Beach S iS Prot 573 Freeman E. Fairfield, et al. is 1 STATE OF CALIFORNIA } 2 COUNTY OF ORANGE r 3 n this 100 day of October , 1.960 } before ace, the un ect sagn� a Notary is �n an nx said 4 County and State, personally appeared Ernest H. Gisler i k ioFwn to me to be the yor o the City � 5 } o untiaagtoa""" eac ^=nuz� cipal corporation of the State of California, and. Paul C. Jones 6 known to me to ne t e ity Clerk of said City 0' uiatir g an Beach," the City that executed the within and foregoing instxu r 7 it meat, and known to me to, be the persons who executed the within t } instrument on behalf of said City of Huntington Beach, and ` 8 acknpiledged to me that the City executed the same, 9 , WITNESS my hand and official. seal... 10 Notary Pub is in and for said County and State 12 � ' +'• T, .ii .. Y r.'vz rc a w-7rnt..kr,.Eetc n.L.a}s:orxf`sa Iti G aadxes:a •2e, 190 13 �� S�;tSiTE OF CALIFORNIA � Lnimsr 14 COUNTY OF LOS ANGELES � s 15 On this 11,tb day of SEPTE11MR 1961, � before me, aTotaxPublic in an tor said autaty azt Late, 16, - personally app�axed Freeman ar/d Ruth Fairfield, mown to me to � be the persons whose names are subscribed to the within instxuw 17 ment, and acknowledged to me that they executed the same. WITNESS my hand and official. seal. � 20` �—Notary- is an or alci E County and Mate 21 ff err 1--bliq 22 fi STATE OF CALIFORNIA ss' y 23 COUNTY OF 24 Op this day of 1961, before- me, d,,,Notar c i,n an or say County an State 1 25 personally, agpcared Russell B. and Veronica Watkins) known to me � to be the persons whose names are subscribed tp the within instru-1 26 ment, and acknowledged to me that they exec\te'�d the same, 27 � WITNESS my',hand and official sell2s1J () ataxy 1c gin';and tor Sal County and State 32 'j a Amendment to Oil and Gas Lease v ' City of Huntington Beach Freeman E. Fairfield, et al., 340K 94,5 P(F z s x STATE OF CALIFORNIA � { ss. 2r COUNTY OFxr} r t. z a 3 #: On this :t day of 1961,1 before me, a Notar ubli in and. or say ' 'ounty an tate, 4 personally appearedy J. W. Wood, known to rue to be the person q whose name. is subscribed to the within: instrument, and ack-now t -b— 'ledged to me that he executed the same. y 6 ' WITNESS my hand and official seal. of ty Puslic. in and tor said' County and 'State 10 STATE OF 'CALIFORPIr;A 11 f! COUNTY OF ss,v4 f I 12 i On this ,� day o1_0v_ f .. 196ij before me, a Notazyy c in an or' s i aunty an State, 13 Personally appeav east Fps Dopey, known to me to be the President, and ,fAssistant Secretary of Atlantic 14 11 Oil Canpany, the corporation that executed the within instrument, i known to me to be the persons who executed the within instrument 15 on behalf of the corporation herrsi.n named, and"acknowledged to me that such corporation executed the same, pursuant to its E 16 jf by-laws or a: resolution by. its Board of Directors. j 17 1F 1 i WITNESS my hand and official seal. 19 o y Public an tar Sa 4 County and State, I , 20 ,fib S. 1a�' 0owWssion Expires Jrsivary ,'4 ,;1,i 3 21 STATE C CALHORNIA 22 COUNIY 01—Zl i 1 � x ✓` 1961 `23 . �� th1.s,�:� - da y of � a a 24 � before me, a Notary Pudic in an or sa> aunty an fate, personal 3y appeared 'ester Calla ian and Lester Callahan, Jr., I 13 known to me to be the co-partners of 'Les-CalCo. , the co-partner- 25 ship that executed the withi.i instrument, and acknowledged tome 1 that, such co-partnership executed the same, i 26 i �I `WITNESS my hand and official. seal. 27 .r ire r otary u) i c In and IM ua .F Y�29 County and Sate 30 " p +aattxasnirrsat ,: j' Amendment to Oil and Gas Lease x. ;i City of Huntington Beach r g Freeman E d Fairfield, at al , 6nB�J��J P,'•`t"�575 j P ii STATE OF CALIFORNIA 3 �. 2 COUNT Y �}r/4.7" . f' r y: SS 1 h 3 on thi ` day of `' _ ' 1961, I' before me, the un e--Signed,.,a Notary , xc in and for said 4 ii County and State, personally appeared LESTER CALLA:AN and RUBY CALIAIL4.142 as Trustees under the provisions of that Certain P Declaration ;of Trust da_ed July 17, 1941, and recorded March 14, 1956, in Boom 3437, page 3 of Official Records in the office of � a ;, the County Recorder of said County, as amended by Amendment. No 1 1f to Lester Callahan Trust dated December 29, 1941, and recorded 7 March 14, 1956, in Book 3437, page 21 of Official Records in the office of the County Recorder of said County, known to me to be 1 8 the persons whose names are subscribed to the: foregoing instru- ji ment, and acknowledged to me that they executed the same as such 9 trustees. 4 � WITNESS my hand and official. seal. 12 biozary u 1c- J an or Said County and State 13 t 14 i Kz'Catuxezy:loaapi;eaNfYz8aSs6�€ i 15 1 is 16 ;, 71 17 '.' STATE OF CALIFORNIA ss. 18 COUNTY OF 19 j On this day - 196 before me, a Notary Public in and for sa3--d Couniy an fate, � 20 j ppersonally appeared Russell B. Watkins and Delores Watkins, i known to me to be,t'qe persons whose names are subscribed to the 21 ! within instrument, and aclaiawledged to me that they executed the same. 22 � g ' WITNESS my hand and official seal. 23 24 {; o, N�otary' Public,pan,"an or said 25 sy MARJORIE K.TAGGART County and State � i s . I t -tommisslon Expires Fob,24,194 26 t a , 4'.. r 2 �+ - , T.... RF-coRMfl AT RfEG2tSEST OF !� ORANGE Gt?UN sY i!fLE co 28 f 10 OPFICIAL i?tco>aas O ig ORANGE; COUNT4; CALIF 29 ="dT5� ?I. t R i3G 1S 11 34 �Y cfAl,lA tD,Cau+itg PWMder 31 1 s j 9 P 32 f° f w CONSENT TO VENDMENT OF OIL AND GAS LEASE 1 GEORGE W. SUTTON, ,as the owner of leasehold interests in 2 ;' and to the land situated in the County of Orange, State of Calif- ! 3 ,. ornia, affected by that certain Amendment to Oil and Gas Lease { 4 _ entered into by and between City of Huntington Beach Lessor and 5 Freeman E. Fairf eld et al, lessees, recorded December ' 6 ; in Book 5945 page 570 c�f Official Records, in the 7 office of the County Recorder of sat; County, does hereby consent� to said Amendment and agrees to subordinate his interest thereto g and to observe the restrictions therein contained. ' 10 ! The hereinabove referred: to leasehold interests of George W,o 11 i Sutton were acquired under and by virtue of an unrecorded Lease 12 dated December 22, 1959 from City of Huntington Beach, Lessor to iy George W. Sutton, Lessee. 14 IN WITNESS WHEREOF, this instrument has been executed this 15 691 day of ggtgbp�' , 19 . 8 �• � 7 r 17 George Sutton 18 t 19 STATE OF CALIFORNIA 20 ss. COUNTY OF Orange 21 On this 6th day of October , 1961 22 1 before rye, a Notary Public in and for said County and State, 25 personally appeared George W. Sutton, known to me to be the 24 1 person whose name is subscribed to the foregoing instrument, and 25 't S acknowledged to me that he executed the same. 26 L3lTNESS my hand and official seal. 27 28 tyt e". 3 rC `x.r.ta 4 „. . J T C In and tQ37 755 RECORDED AT RfEQUEST'OF County and State. GS { ORANGE COUNTY TFl i!-' CO, IN OF`Fbr IAL ReCO ej:� F t s*} 3� } Ort+0.NGE COUF Ty7 CAL F� #iheS"7 'd pd tAF`C*• 4#TAFdsl P[F3ttC i�31 9,01 AM 3�C .t AL:X�Z:.xSt#17Jr,un�ei s�t4r uJ�';qaiY kpraiia ; + i. ter kFaU-F1tiFUnrtr n�2^..h,c.eT..'' �. 32 � _Retll-rn to SOUTHERN CALIFORN!A,Dl;o%l cotopA,#iy - Lt-)S ANGEL_LS 53, CA11F, 10896 AlIENTtoN—•R/W&LAND VUL CONSENT. TO AMEND14ONT OF OIL AND GAS LEASE LOYD GAGE, doing business as SANDBLAST AND I�it'"TALLIZIIvG COI-TANY, as the owner of leasehold interests in and to the land situated in the County of Grange, State of California, affected by that certain Amendment to Oil and Gas Lease entered into by and between City of Huntington Beach, Lessor, and freeman E. Fairfield, et al, Lessees, recorded December 15, 1961 in Book 1 5945 , page 570 of Official Records, in the office of the County Recorder of said County, does hereby consent to said " Amendment and agrees to subord_n.ate his interest therato and to ;,bserve the restrictions therein contained. The hereinabove referred to leasehold interests of Loyd Gage were acquired under and by virtue of an unrecorded Lease da% :d July 1st, 1961 from the City of Huntington Beach, Lessor, to Loyd Gage, doing business as Sandblast and Metallizing Company, Lessee. IN WITNESS WBERECF , this instrument has been executed this 50 day of October s 1961. Z YD GAGE STATE CF CALIFORNIA } a ss COUNTY OF ORANGE On this S day of 1961, before me, a Notary Public in and for said County and State, personally appeared LOYD GAGE, doing business as Sandblast and Metalling Company, known to me to be the person whose name is subscribed to the fOxG- going instrument and acknowledged that he executed the same. RECORDED AT REQUEST'OF ORANGE COUNTY v 1TLE- Co, - r � �f 7z�., Lt•� .� Gt i IN OFFICIAL RECORDS OF ORANGE COUNTY, CALIF. E NESTCNA D!PAU:O-NOTARY PUBLIC .end for tLe cconty of Orange,State of C;aaia,gip,`. 9:01 Ate t3EC 1.5 1961 I�co>n>nigsi�n s sir t acne 2G,tess {atJ!'Ia1L;�iwlkinBtaW-Btacli,CaGE. r $2.00 RJRy mcFAtANC,Coupty Record r