I- -l : , . I96A) ( i . « r . , « . ! » » UNITF.D STATES

DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT

OIL AND GAS LEASE OF SUBMERGED LANDS UNDER T H E O U T E R C O N T I N E N T A L S H E L F LANDS A C T

Office ;{ou Drloooo* Lit.

Serial Number 00S«>0 1893

Cash Bonus 32Ql,fcOO.OO

Rental Rate^lO.OO JOT

Rate ' imy Rau

This indenture of lease enteied into and effective as of March L , 19^9 , bv and between the U .ited States of America, hereinafter called the Lessor, by the Director, Bureau of Land Managemen' H

CltlM s«rfio« ou oo aoor 25*

Joatloantal Oil Joupcay

Oetty Oil Goqxmy

MXUnUe MahfUlrt 00*009

hereinafter called the Lessee, under, pursuant, and subject to the terms and provisions of the Outer Continental Shelf Lands Actof August 7, 1953 (67 Stat. 462; 43 U.S.C, Sec. 1331, el seq.}, hereinafter referred to as the Act, and to all lawful and reasonable regulations of the Secretary of the Interioi (hereinafter referred to as the Secretary) when not in­consistent with any express anti specific provisions herein, which are made a part hereof:

WITNESSETH:

i c r . 1. Rights of Lessee. That the Lessor, tn consideration of a cash bonus and of the rents and rovalties to be paid, ...id the conditions and covenants to be observed as herein set forth, does hereby grant and leaso to the Lessee the exclusive right and privilege to dr i l l for, mine, extract) remove and dispose of all oi l and gas deposits ex­cept helium gas in or under the following-described area of the Outer Continental Shelf (as that term is defined in the Act):

Blocic 2(6$ Sb SOflHW laland Araa, Off lo la l Laaaing Hop, Loolaiana Hap Ho. U

containing 2,500

acres, more or less (hereinafter referred to as the leased area), together with:

la) the nonexclusive right to conduct within the leased area geological and geophysical explorations which are not unduly harmful to aquatic l i fe ;

Ih l (he right to d r i l l water wells within the leased area and use free of cost, and to dispose of, water produced from such wells, and

Ic) thc right to construct or erect and to maintain within the leased nrea a l l art if icial islands, platforms, fixed or floating structures, sea walls, docks, dredged channels and spaces, buildings, plants, telegraph ur telephone lines and cables, pipelines, reservoirs, tanks, pumping stations, and other works and structures necessary or convenient to the fun enjoyment of the rights granted by this lease, for a period of S years and as long thereafter as oil or gas may be produced from the leased area in paying quantities, or dr i l l ing or well reworking operations, as approved by Ihe Secretary, are conducted thereon, subject to any unit­ization or pooling agreement heretofore or hereafter approved by the Secretary which affects the leased area or any part thereof, Ihe provisions of such agree­ments to govern the leased area or part thereof subject thereto where inconsistent with the terms of this lease.

Sec. 2. Obligations of Lessee In consideration of the foregoing, the Lessee agrees:

i i i i Renlnls o'ul royalties. (1) To pay rentals and royalties as follows:

Renlnls. To pay the Lessor on or before the first day of each lease year commencing prior to a dis­covery of o i l or gas on the leased area, a rental of

i0.yO per acre or fraction thereof.

MiniiRuifi royally. To pay the Lessor in lieu ol rental at the expiration of each lease year rom-nencing after discovery a minimum royally of per ecre or fraction thereof or, if there is production, the difference between the actual royalty paid during the vear and thc prescribed minimum rcyalty, if the actual royalty paid is less than the minimun- royalty.

Royally on produclion. To pay Ihe Lessor a royultyof percent inamount orvalue of production saved, removed, or sold from leased area. Gas of all kinds (excep* helium and gas used for purposes of pro­duction from and operations upon the leased area or un­avoidably lost) is subiect to royalty.

(2) It is expressly agreed that tho ..'ecretary may establish reasonable minimum values for purposes of computing royalty on products obtained from this lease, due consideration being given to the highest price paid for a part or for a majority of production of like quality in Ihe same field, or area, to Ihe price received bv the Lessee, to posted prices, and to other relevant matters. Each such determination shall be made only after due i|Sr WO. 2 Noted - CaimovK:h9 ^ f . p

notice to the Lessee and a reasonable opportunity has been afforded the Lessee to be heard.

(3) When paid in value, such royalties on production shall be due and payable monlhl'' on the last dav of the month next following the month in which the production is obtained. When paid in production, such royalties shall be delivered at pipelineconnections or intanks provided by the Lessee. Such deliveries shall be made at reasonable times and intervals and, at the Lessee's option, .hall be effected either ( i ) on or immediately adjacent to rhe leased urea, without cost to the Lessor, or ( i i ) at a more convenient point closer to shore or on shore, in which event the Lessee r.hall be entitled to reimbur.ement for the reasonable cost of transporting the royalty substance to suchdelivery point. The Lessee shall not be required f provide storage for royalty taken in kind in excess of

•ge reqjired when royally is paid in value. When pa>...ents are made in produclion the- Lessee shall not be held liable for the loss or destruction of royalty oil or other liquid products in storage from causes over which the Lessee has no control.

(4) Renlals or minimum royalties may be re­duced and royalties on the entire leasehold or any deposit, tract, or pcrlion thereof segregated for royalt> purposes may be reduced if the Secretary finds that, for '.he purpose of increasing the ult ' e recovery of oil or gas and in the interest of cons. . on of natural re­sources, i l is necessary, in his , nent, lo do so in order lo p'omote development, or because Ihe lease can­not be successfully operated under I he terns fixed herein.

Il>i Homls. To maintain at all limes the bond re­quired prior lo Ihe issuance of this lease and to furnish such additional security as may be required by Ihe Lessor i f , afteroperations or production have begun, the I . ssor deems such additional security lo be necessan.

. ( nitfivrittn c ni uni' pliin. Within 30 days after demand, to subscribe to and to operate undet such rea­sonable cooperaiive or unil planfi.r the dcveio.iment and operation of the area, f ie ld , or pool, or part thereof, embracing lands included herein as the Secreiary run determine lo be practicable and necessary or advis.<•«'.• in the interest of conservation which plun shall aiiC quately protect Ihe righls of all parties in interest, mrludinc the United Sti.tes.

[ d l Wil ls . (1) To dril l and produce such wells as are necessary I " protect Ihe Lessor from loss by reason of produclion on other properties or, in lieu thereof, with the consent of Ihe oil and gas supervisor, lo pay som determined by the supervisor as adequate lo com­pensate the Lessor for failure lo dr i l l and produce ans sue'i wel l . In Ihe event that this lease is not bein?, maintained in force by other production of oil or gas in paying quanlilies or by other approved dr i l l ing or re­working operations, such payments shall be considered as the equivalent of produclion in paying quantities f.-u all purposes of this lease.

(2) Afler due notice in writing, to d r i l l and pro­duce such othei wells as the Secretarv may reasona'A requirt in order lhat the leased atea or any paM thereof tr .v be properly and limelv dmrlc^ed and prooci >•'! i accordance with good operating ptactn <•.

(?) At the election of the Lessee, i d and produce other wells in contormtlv with nrr. em wellapacing " i produrtion allotments affectinf f ie ld , or pool inwhii h the 1«MSC<1 area ot .in-, pat' is situated, which is authotized ot sanctioned In ap] cable law at In the Secretary,

't / " . u " . . To muke aU payments lo the Lessoi bv cheoK, bank draft or money order payable in­dicated herein unless otherwise provided by regulations or by direction of the Secretary. Kental, royalties, ami other cayments shnll be made payable to the United State.; Geolop.ical Survey and tendered lo the Oil and Gas Su; •-•rvisor, . ». rpl that filingcharges, bonuses, and first year's rental ahall he made payable to thr Bureau

of Land Management and remitted to the Manager of the appropriate field office of that Bureau.

' ff ConlnietM for diaposal of products. To f i le wilh the Oil and Gas Supervisor, Geological Survey, nol later than 30 days afler Ihe effective dale thereof, copies of all contracts for Ihe disposal of lease producls; pro­vided that Ihe Supervisor may relieve Ihe Lessee of this requirement, in which event the conlracls shall be made available for inspection by Ihe Supervisor upon his request. Nothing in any such contract or in any approval thereof by the Supervisor shall be construed or accepted i s modifying any of the provisions of Ihis lense, including, but not limiied lo , provisions relating to gas waste, taking royalty in kind, and the method of computing royallies due as based on a minimum valu­ation and in accordance with the regulations applicable lo Ihis lease.

(^> Statements, plnis, nnd repuris. At such limes und in such form as Ihe Lessor may prescribe, to furnish detailed statemenls and reports showingthe amounts and quality of a l l products saved, removed, and sold from Ihe leased areu, the proceeds therefrom, and the amount used for production purposes or unavoidably lost; also o plat showing development work and improvements on or with regard lo the leased area.

lh ) Ins pec i n ni. To keep tpen at a l l reasonable limes for lhe inspeclion of any duly authorized repre­sentative of Ihe Lessor, the lea.,ed area and a l l wells, improvements, machinery and fixtures thereon and a l l nooks, accounts, and records relative lo operations and surveys or inves'igations on or with regard to the leased area or under the lease.

' n Diligence. To exercise reasonable diligence in dr i l l ing and producing Ihe wells herein provided for, to carry on a l l operalions in accordance with approved methods and practices including those provided in the operating and conservation regulations for Ihe Outer Continental Shelf; to remove a l l structures when no longer required for operations under the leuse lo suff i ­cient depth beneath Ihe surface of the waters lo prevent them from being a hazard to navigation; to r irry oul at expense of the Lessee a l l lawful and reasonable orders ot the Lessor relative to the matters in this paragraoh, and that on failure of the 1 '-ssee so lo do Ihe Lessor shall have the right lo enter on the properly and lo ac­complish the purpose of such orders at the Lessee's cost: Prm uli-d. That the Lessee shall nol be held responsible for delays or casualties occasioned by causes beyond the Lessee's conlrol.

' / ( Freedom " / purchase. To accord a l l workmen and employees directly engaged in any of Ihe operalions under Ihis lease complete freedom of purchase.

/ (/;<!/.' Opportunity clause During the perform­ance of this Contract the lessee agrees as follows:

(.1) The lessee wi l l not discriminate against any employee or applicant for employmem because ol ri.ee. creed, color, or national origin The lessee wi l l r.ik-- aff imat ive .iction to ensure that applicants are om| toyed, and that employees are treated during em-ploimenl. without regard to their race, creed, colot. or national origin. Such actum shall include, but nol I " limited to the following; employment, upgrading, dt 'tion. or transfer, recruitment ot reciuitm.'nl

•isin^. I.n off or termination; rates of pay or other lorm oi compensation; and selection tor training, including apprenticeship. The lessee agrees to post in consptt uous places, available to employees and applicants lor employment, notices to be provided tn the contracting officet setting lorth the provisions >if this nondisi nminatton clause.

(J) The lessee w i l l , in all aolicitali is or advertisements for employees placed by or on bcnalf of the lessee, state that all qualified applicants w i l l receive consideration lor employment wi'hout regard to race, creed, color, or national origin.

Form 1140-3 (May I%B)

UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT

EQUAL OPPORTUNITY IN EMPLOYMENT CERTIFICATION OF NONSEGREGATED FACILITIES

Bid, offer or contract number or other identificatior-

By the submission of this bid or offer and/or by entering into this contract, the bidder, offeror, lessee, subcon­tractor, or applicant certifies that he does net maintain or provide for his employees any segregated faci l i t ies at any of his establishments, and that he does not permit his employees to perfonn their services at any location, under his control, where segregated faci l i t ies are main­tained. He cert i f ies further that he wi l l not maintain or provide for his employees any segregated faci l i t ies at any of his establishments, and that he w i l l not permit his employees to perform their services at anv location, under his control, where segregated facilitic- are main­tained. The bidder, offeror, applicant, or suocontractor agrees that a breach of this certification is a violation )f the Equal Opportunity clause in this contract. As used in this cert i f icat ion, the term "segregated faci l ­i t ies" means, but is not limited to, any wait ing rooms, wotk areas, rest rooms and wash rooms, restaurants and

other cam. areas, time clocks, locker roons and other storage or dressing areas, parking lots, drinking foun­tains, recreation or entertainment areas, transportation, and housing faci l i t ies provided for employees which are segregated by expl ic i t directive or are in fact segregated on the basis of race, creed, color, or national origin, because of habit, local custom, or otherwise. He further agrees that (except where he has obtained identical certifications from ptoposed subcontractors for specific time periods) he w i l l obtain identical certif ications from proposed ibeontractors prior to the award of subcon­tracts ex ceding SIO.OOO which are not exempt from the provisions of the Equal Opportunity clause; that he wi l l retain such certifications in his f i les; and that he wi l l forward the following notice to such proposed subcon­tractors (except where the proposed subcontractors have submitted identical certifications for specific time periods):

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT

FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES

A Certification of Nonsegregated Faci l i t ies, as required

by the May 9, 1967, order (32 F.R. 7439, May 19, 1967)

on Elimination of Segregated Facil i t ies, by th< Secretary

of Labor, must be submitted prior to the award of a sub­

contract exceeding $10,000 which is not exempt from the

provisions of the Equal Opportunity clause. The certi­

fication may be submitted either for each subcontract or

for all subcortracts during a period ( i .e. , quarterly,

semiannually, or annually).

In accordance with 41 CFR 60. as amended May 19, 1967. and Executive Order No. 11246 of September 24. 1%5. this certification is applicable to all bids, offers, contracts and subcontracts as well as agreements with applicants who are themselves performing federally assisted contracts, which may exceed $10,000 and are not exempt from the provi­sions of the Equal Opportunity clause of the Order

O P O 1 4 2 - « « 2

(3) The lesse*- w i l l send lo each labor union or represenlafive of workers w I'h which he has a collective bprKaininK Bgre*meni '>r oiher contraci or undt-rsiundinR. a notice, lo b - .ir-'vided bv lhe agency contracllng officer, advising the labor union or workers' representative of the lessee's commitments under Section 202 of Executive Order No. 11240 of Sep­tember 24. 1)65. and shall post copies of the notice in conspicuous places available lo emplovees und applicants for employment

(4» The lessee w i l l comply with all provisions of Executive Order No 11246 of September 24. 1965. and of the rules, regulations, and relevant orders of the Secretary of Labor.

( H The lessee w i l l fumish all information and reports required by Executive Order No. 11246 of September 24. 1965. and by the rules, regulations, and orders of the Secreiary of Labor, or pursuant thereto, and wi l l permit access to his books, records, and accounts by the contracting agency and Ihe Secre­tary of Labor for purposes of investigation lo ascertain compliance with such rules, regulaiions, and orders.

(6) In the event of the lessee's noncompliance wilh the' nondiscrimination clauses of Ihis contract or with any of such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the lessee may be declared ineligible for further Govemment contracts in ac­cordance with procedures aulhon/ed in Executive Order No. i l246 of September 24. 1965. and such other sanctions may be imposed and remedies involved as provided in Executive Order No 1124b of Sep­tember 24, 1965, or by rule, regulation, or order of the Secreiary of Labor, or as otherwise provided by law.

(7) The lessee w i l l include the provisions of Paragraphs (1) through (7) in every subcontraci or purchase order univ- s exempted by rules, regulations, or orders of Ihe Secreiary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of Sep­tember 24, l^ftG. so that such provisions w i l l be binding upon each r.ubcontractor or vendor. The lessee wili lake such action with respect lo any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for noncompliance: P m ided, hin. ei < r. That in the event the lessee becomes involved in, or is threatened wi lh . litigation with a sub­contractor or vendor ns a reults of such direction by the contracting agency, the lessee may request the United States to enter into such litigation to pro­tect the interests of the United States.

• l i Assignment of lease. To file for approval with the Bureau of Land Management, within 90 day>> from Ihe date of final execution, any instrument of transfer of this lease, or any interest therein, including assign­ments of record t i t l e , operating agreements, und sub­leases. Carried working interests, overriding royalty interests, or payments oul of production, may be created or transferred without requirement for f i l i n g or approval Instruments required lo be filed shall take effecl upon approval as of the first day of the lease month following the date of f i l ing unless ai the request of the parties an earlier dale is specified in such approval.

Sec. 3. Reservations to Lessor. The Lessor reserves:

'ir) (ieological and geopliysical explora'u.n; i his* of-uay. The righl to authorize fhe conduct of geological and geophysical exploration in Ihe leased area which does not interfere with or endanger actual operalions under Ihis lease, and the right to grant such easements or rights-of-way upon, through, or in the leased area as may be necessary or appropriate lo the working of oth-r lands containing the deposits described in the A c l , and to the treatment and shipment of products thereof by

or i der authority of the United Stales, its Lessees or Permittees, and for other public purposes, subject lo the provisions of Section Sfcj of Ihe Act where they are applicable and to a l l lawful and reasonable regulations and conditions prescribed by the Secretarv thereunder.

lh) Leases of sulfur and other minerul. The right to grant sulfur leases and leases of anv mineral other than o i l , gas, and sulfur within the leused area or any part thereof, subject to Ihe provisions of Section Su) . Bid I, and 8(e) of the Act and a l l lawful and reasonable regulations prescribed by the Secreiary thereunder; P,ovided. That no such sulfur lease or lease of other mineral shall authorize or permit the Lessee thereunder unreasonably to interfere with or endanger operations under this lease.

(c) Purchase of ptoduction, I r time of war, or when the President of the United Statet. shall so prescribe, Ihe right of first refusal to purchase ai Ihe market price al l or any portion of the oil or gas produced from the leased area, as provided in Section 12 ' /M of the Act.

(d) Taking of royalties. A l l rights, pursuant to clause (3) of Section 8<h) of the Act, to take royalties in the amount or value of production.

(el Fissionahle materials. A l l unnium, thorium, and a l l other materials determined pursuant to paragraph (1) of subsection (b) of Section 5 of the Atomic Energy Act of 1946, as amended, to be peculiarly essential to Ihe produciion of fissionable materials, contained, in whatever concentration, in deposits in the subsoil or seabed of the leased area or any part thereof, as pro­vided in Section \2(e) of the Act.

( f ) Helium Pursuant lo Section I 2 i f i of the Act, the ownership and the righl to extract helium from a l l gas produced under this lease, subject lo such rules und regulations as shall be prescribed by ihe Secretary.

(g) Suspension of operations during uar or national emergency. Upon recommendation of Ihe Secretary of Defense, during a state of war or national emergency declared by the Congress or Pic. ident of the United States after August 7, I9S3, the i uthority of thc Secretary to suspend any or a l l operations under this lease, as provided in Section 12(c>of the Act: Prot ided. That just compensation shall be paid by the Lessor to the Lessee.

(b) Restriction of exploration and operations. The right, as provided in Section I2 iu) of the Act, to restrict from exploration and operations thc leased area or any part thereof which may be designated hy and through the Secretary of Defense, with the approval of the President, as, or as part of, an area of the Outer Continental Shelf needed for national defense; and so long as such designation remains in effect no explora-tior or operations may be conducted on the surface of the leased area or the part thereof included wiihin the designation except with Ihe concurrence of Ihe Secretary of Defense; and if operations or production under Ihis lease within any such restricted urea shall be sus­pended, any payments of rentals, minimum royalty, and royalty prescribed by I'*Is lease likewise shall be suspended during such period of suspension of opera­lions and production, and Ihe term of ihis tease shall IK- extended by adding thereto any such suspension ,>eriod, and 'he Lessor shall oe liable lo the Lessee for such conru'iisation as is required lo be paid under the Con&titutioi. of the United Slates.

Sec. 4. Directional dr i l l ing. This lease may be maintained in fotce by directional wells drilled under Ihe leased area from surface locations on adjacent or adjoining lands not covered by this lease. In such circumstances,diilling shall be considered to have been commenced on Ihe leased area when drill inK >s com­menced on Ihe adjacent or adjoining land for Ihe purpose of directionally dri l l ing under Ihe leased area, and pro­duction of o i l or gas from the leased areu through any directional well surfaced on adjacent or adjoining land or dril l ing or reworking of any such directional well

shall be considered production or drilling or teworking ope:ations (as the case may be) on the leased area (or all purposes of this leuse. Nothing contained tn this paragraph is intended or shall be construed as granting lo the Lessee any leasehold interests, licenses, ease­ments, or other rights in or with respect to any such adjacent or adjoining land in addition to any such lease­hold interests, licenses, easements, or other rights which thc Lessee muy have lawfully acquired under the Act or from the Lessor or others.

Sei. 5. Surrender and termination of leote. The Lessee may surrender this entire lease or any officially designated subdivision of the leased area by filing with the Bureau of Land Management, a written relinquish­ment, in triplii ate, which shall be effective as of the date of filing, subject to the continued obligation of the Lessee and his surety to make payment of all accrued rentals and royalties and to abandon all wells on the area to be relinquished to the satisfaction of the Oil and Gas Supervisor.

Sec. 6. Removal of property onterminotion of lease. Upon the expiration of this lease, or the earlier termina­tion thereof as herein provided, the Lessee shall within a period of 1 year thereafter remove from the premises all structures, machinery, equipment, tools, and mate­rials other than improvements needed for producing wells or for drilling or producing on other leases and other property permitted by the Lessor to be maintained on the arja.

Sec. 7. Remedies in cose of default. Whenever the Lessee fails to c omply with an/ of the provisions of the Act or this lease or the applicable regulations in force and effect on the date of issuance of this lease, the lease shall be subject to cancellation as follows:

(1) Cancellation of nonprodueing lease. If, at the time of such default, no well is producing, or is capable of producing, oil or gas in paying quantities from the leased area, whether such well be drilled from a surface location within the li.ised area or be direc­tionally drilled from a surface location on adjacent or adjoining lands, Ihis lease may be cancelled by thc Secretary (subject to the righl of judicial review as provided in Section 8 /> of the Act) if such default con­tinues for the period of 30 days afier mailing of notice by registered leller tothe Lessee al the Lessee's record post office address. CCIiTUffii.TAL OIL C0.-1PANY

(:;;;:AL) 3y U l J . P. M A l o t t

T. Fl Malott , TTce Presleleift Att - ct.: /a/ Howard k . Yat.fr

Assistant Secretary

ATLAimC HICHFISLD COMPANY

Sy / s / S. C. Mut

(SKAL)

(2) Cancellation of producinf; lease. If, at the time of such default, any well is producing, or is capable of producing, oil or gas in paying quantifier, from the leased area, whether such well be drilled from a surface localion wiihin the leased area or be direc-lionally drilled from a surface localion on adjacent or adjoining lands, this lease may be cancelled t)> an ap­propriate proceeding in any United Slates district court having jurisdiction under Ihe provisions of Section €(b) of Ihe Act ii such default continues for the period of 30 days after mailing of notice by registeted letter to the Lessee al the Lessee's record post office address.

(b) Other remedies. If any such default continues for the period of 30 days after mailing of notice by registered letter lo Ihe Lessee at the Lessee's record post office address, the Lessor may then exercise any legal ot equitable remedy which the Lessor may have; however, ihe remedy of cancellation of this lease may be exercised only under the conditions and subject to Ihe limitations set out -ibovo in paragraph (a) of this Section, or pursuant to Section Sdl of ihe Act.

(c) Eflect of uaiver of default. A waiver of any particular default shall not prevent thc cancellation of this lease or the exercise of any other remedy the Lessor may have by reason of any other cause or for the same cause occurring at any other time.

Sec. 8. Heirs and successors in interest. F-ach obligation hereunder shall extend to and be binding upon, and every benefit hereof shall inu'e to, the heirs, executors, administrators, successors, or assigns of Ihe respective parties hereto.

Sec. 9. Unlawful interest. No Member of, or Delegate lo. Congress, or Resident Commissioner, afler his election or appointment, or either before or after he has qualified, and during his continuance in officc, and no officer, agenl, or employee of Ihe Department of the Interior, except as provided in 43 CFR 7.4(a) (I) , shall be admitted to any share or part in this lease or derive any benefit that may arise therefrom; and th-' provisions of Section 3741 of Ihe Revised Statutes (41 U.S.C. Sec. 22), as amended, and Sections 431, 4o2. and 433 of Title 18 of the United Stales Code, relating lo contracts made or entered into, or accepted by or on behi.lf of the United States, form a part of this lease so far as the same may be applicable.

CITIE3 SERVICE OIL COMPANY

By / c i Mark P. ?.-iytor. (SEAL)

Mark F. Payton A t t e s t ; / . , / -iar-Jlu Mnlja.-

AssTs^anC Secrptary

- i . C. Hut, (Sifpiaturr o l Less r r ) .. By.

TI IE U N I T E D STATES OK AMERICA

/ s f John L. Rankin

Vic? Presiden (Authonzrd Officer)

Attost; /a/ Mary C. Jraycr A £ i s' nnt So ury

(Signature of Lessee)

GSTTY wiL COMPANY

By /s/ Lloyd Armstrong

(SEAL)

(SiKnature of Lessee)

A ttorney-m-Fact Li yd A r-r.:- :•• n.

(Tide)

February 13, 1965 ( D a l e )

(Signature of Less'-e)

11 thm Ieate i t executed by a corpori l inn, i l m u s f bear thc corporal,- sea/ OMO tat i n

UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU O F LAND MANAGEMENT nnr OBLSAHS omci P 0 Box 53226 Hew Orleans, La. 70150

DECISION Name Cities Sex-vice Oil Co.

800 Main Bldg. Houston, Toxaa 77002 Cont inen ta l O i l 0c. P 0 Boot 2197, Houaton, Texaa 77001 Clotty Oi l GO. P 0 Box luOU, Hous Un, Taxas 77001 Atlantic Richfield Co. P 0 Box 13U6, Houaton, Texaa 77001

I N REFL Y REFER T O :

OCS^} 1893

Dale Januaiy lit, 1969

Slate Louiaiana

Area

Tract Number L a . 2023

Block Number 265

Description

ill

Rental 125.000

Balance of Bonus

LEASE FORMS TRANSMITTED FOR EXECUTION 161,120.00

Pursuant lo Section 8 of the Outer Continenttl Shelf Lands Acl (67 Stat. 462; 4.1 U S C. 1337), and the regulations per­taining thereto (43 CFR 3380 ct sa/ i your bid for the above tract is accepted.

Yoi:-qualifications have been examined and are satisfactory, Acvordingly. in order to perfect your rights hereunder, the following action musl be taken:

'•X 1. Execute and retum Ihe three copies of utlached lease (/• . ast is executed oy an agent, n ident e must he furnished nl agent's authorizatinn )

X 2. Pay the balance ol bonus bid and Ihe first vear's renlal indicaled above.

1 11969 J

Thirt> days from receipt ol this decision arc allowed for compliance with thc above requirements, failing in which your rights to acquire a lease and Ihe deposit of I S of the bonus bid will be forfeited.

IMPORTANT: The lease form requires th, attachment lh,- COKPORATf. iEAl '<> all leases etetultd by corporations

Attachments John L . Rankin «-"-«• '•

Korm .1.180-9 (July l<>M>) if..cra»rlv 4-IJOOi

: • -DIST. NO. 2

T i L 3 0 4 P • 3 . 4 7 2 0

MEMORANDUM

To:

United States Department of the Interior ll.i M.K Al. M KVK>

3 3 a I M P C N I A I O f f . M B L O C J J O I N C » U » C M A t P L V O

^ O U O « 7 t » « 4

M E T A I H I E L O U I S I A N A 7 0 0 n

March 14, 1974

Manager. Culf of Mexico Outer Continental Shelf Office, Buraau of Land Manegcment, Naw Orleana, Louisiana 70113

Proa: Oil aod Gaa Superviaor. Field Operations, Gulf of Mexico Araa

Subject: Expiration of Outer Continental Shelf Leases

Tht toliowing OCS Leases had primary axpiratlon date of t aruary 28, 1974:

Remarks

Drilling Producing No Oparationa No Operations Producing No Operations Producing Producing Producible SI

Supplaasntal raport Is aade on lease OCS-G 1660. portions of Blocks 35 and 66, Wast Cameron Arsa. Drilling

Supplenentel report Is made on lesae OCS-C 1447. West Delte Block 21. Well V-14 drilling ahead tt 12,318' on March 1, 1974.

Pleese iedicata balow If you concur In the teraination of ths Issses listed sbove on which no operations ware conducted within 90 deys preceding the primary axpiratlon dsts of Februsry 28. 1974.

0C§ Mo, Aree Block

G 1879 Wast C MM ron 111 NE/4 G 1880 Esst ussron 264 G 1884 ?eriri lon 216 NE/4 G 1889 Eugene Islsnd 248 SW/4 G 1892 Eugene Islsnd 265 NW/4

^G 1893 Eugsns Island 265 E/2 G 1896 S. Timbalier 148 W/2 G 1899 S. Timbalier 188 NW/4 G 1900 Grand Isle 62 S/2

D. J. bourgeois Acting

I concur .

l . t , /'./y. / John L, Rankin Hub. -a

Ll 3UN