R E C E I V E

Mf • i ••

i .

ASSIGNMENT OF OVERRIDING ROYALTY INTEREST

KNOW ALL MEN BY THESE PRESENTS:

THAT, B r o o k l y n U n i o n E x p l o r a t i o n Company, I n c . , 6 D e l a w a r e

c o r p o r a t i o n , 1311 L i - : i r , S u i t e 1065 , H o u s t o n , Texas 77010

( " A s s i g n o r " ) f o r and i n r o n e U e r f l t i n n oJ t h e sum o f $ 1 0 . 0 0 and

o t h o r g o o d and v a l u a b l e c o n s i d e r a t i o n p a i d Ly Joe P. M a r r , 212 Eas t

T r a v i s , F r e d e r i c k s b u r g , T e x a s 2 4 ; G e o r g e A . K e l l y , J r . , 7122

R a n c h e r i a , M u s t o n , e x a s 77083 ; D a n i e W i l s o n , 1 1 0 » 6 R e n w i c k ,

H o u s t o n , Texas 77096 ; R i c h a r d J . ^ h o r p , 2 5 J 1 1 Roesner L a n e , K a t y ,

T e x a s 77450 ; and James F . W e s t m o r e l a n d , 1606 D i x i e H o l l o w , P e a r l a n d ,

T e x a s 77581 ; ( c o 1 i e c t i v e l y , " A s s i g n e e s " ) , t n e r e c e i p t and

s u f f i c i e n c y o f w h i c h a r e h e r e b y a c k n o w l e d g e d , h e r e b y t r a n s f e r s ,

a s s i g n s and c o n v e y s , w i t h o u t w a r r a n t y o f t i t l e e i t h < r e x p r e s s or

i m p 1 i e d , u n t o

Joe P. M a r r .0004284 of 8 / 8 t h s George A . K e l l y J r . . 0 0 1 0 0 7 8 o f 8 / R t h s D a n i e l A . W i l s o n . 0 0 0 4 2 8 3 o f 8 / 8 t h s R i c h a r d J . T h o r p . 0 0 0 4 0 3 1 o f 8 / 8 c h s James F . W e s t m o r e l a n d . 0 0 0 2 5 1 9 o l n / 8 t h s

o v e r r i d i n g r o y a l t y i n t e r e s t s ( " O v e r r i d i n g R o y a l t y I n t e r e s t s " ) o f

t h e - i l , gas and o t n e r m i n e r a l s i n and u n d e r and t h a t mav be

p r o d u c e d and saved f r o m t h e l a n d c o v e r e d by t h e f o l l o w i n g d e s c r i b e d

l e a s e ( t h e " L e a s e " ) :

O i l and Gas Lease of Submerged Lands dated e f f e c t i v e November 1, 1989, between the United States of America, Lessor, and Apaohe Corporation, et a l , Lessee, covering a l l of Block 6-'.̂, Matagorda Island Area, OCS Leasing Map, Texas Map No. •'. , containing 5,760 acres, more or less, and bearing Serial Number OCS-G 11265.

TO HAVE AND TO HOLD the Overriding Royalty Interests, together

w i t h a l l and singular the rights and appurtenances thereto in anywise

belonging unto the Assignees, t h e i r h e i r s , personal representatives

and assigns, subject t o the terms and provisions or t h i s assignment.

I f Assignor should be e n t i t l e d to receive revenues from

the sale cf o i l and gas produced from the land covered by I e Lease

as a result of an operation, commonly known es "non-consent

p r o v i s i o n s " , o! the p e r t i n e n t tperat inq aqt cement c o v e r i n g such l and ,

tho Ass ignees s h a l l be ent . l ed t o s i x t y - s i x hundredths percent

(0.66%) ot such revenues as i ig as such revenues are r ece ived by

A s s i q n o r . I f Assignor s h o u l d not bp e n t i t l e d t o n . r e i v e revenues

f r o n t h o s . i ie >I o i l and qas produced f rom the land covered by tho

Lease as a r t s u l t ol an >pora t ion , commonly known as "non-< >nsent

p r o v i s i o n s " , of thr p e r t i n e n t o p e r a t i n g aqroon.ent cover inq such l and ,

tho amount otherwise payab l e t o the Assiqne -s s h a l l be reduced bj

s i x t y - s i x hundredths p c r c o n t (0 . ' ) ot such revenues as lonq as such

r evenues are not r e c e i v e d by Ass iqnor . A s s i g n o r , as used in t h i s

p a r a g r a p h , s h a l l i nc lude s i n g j l a r l y Assiqnor and each c ' cs a s s iqns .

Tlie O v e r r i d i n q R o y a l t y I n t e r e s t s s h a l l be f r e e and c l e a r of

11 c o s t s o f development and o p e r a t i o n of t h e Lease, both upstream

a. 1 downstream of the w e l l h e a d , o ther Lh n t r a n s p o r t a t i o n c o s t s ,

«ind s h a l l be !>••• and c l ^ a r o f a l l cos ts o f market ina the o i l and

qas b u t s h a l l be i t s sha re o f a l l taxes l e v i e d aga i i - . p r o d u c t i o n

f r o m t h o Lease.

' the Assignees, i n s o f a r as the O v e r r i d i n g Roya l ty I n t e r e s t s ,

s h a l l haye the same r i g h t s , p r i v i l e g e s , e l e c t i o n s and e n t i l lements

as does the Minera l s Management Se rv i ce , i n s o f a r as the r o y a l t y

under t n e Outer C o n t i n e n t a l rh. I f hands A c t , as ar mded, 4 3 U.S.C.

133 o t s eq . and the r e q u l . i t ions issued t h e r e u n d e r .

N o t h i n g here in c o n t a i n e d s h a l l be c o n s t r u e d as imposing any

o b l i g a t i o n express or i m p l i e d upon Ass iqnor vo m a i n t a i n or preserve

the Lr <se, in fo rce and e f f e c t , t o d r i L l w e l l or t o cond t any

o t h o r o p e r a t i o n whatsoever . Assiqnor s h a l l have no express or

i m p l i e d c o l i q a t i o n t o Assignees t o d r i l l o f f s e t w e l l to

r e a s o n a b l y develop or t o f u r t h e r e x p l o r e .

No change i n o w n e r s h i p , or r i g h t t o r e c e i v e the O v e r r i d i n g

Roy t y I n t e r e s t s , or any p a r t t h e r e o f , however accomplished, s h a l l

o p e r . i t e t o enlarge t h e o b l i g a t i o n s or d i m i n i s h the r i g h t s of

A s s i q n o r , and n o t w i t h s t a n d i n g any o the r a c t u a l or c o n s t r u c t i v e

2

n o t i c e t h e r e o f , such change s h a l l not be b i n u i n g upon Assignor f o r

any purpose u n t i l t h i r * y (30/ days a f t e r r e c e i p t by Assignor of

i n s t rurr.c,,i_t> or othe r l e g a l l y a u t h e n t i c a t e d w r i t t e n evidence

s a t i s f a c t o r y to Assignor c o n s t i t u t i n g the chai n of t i t l e of such

'lia'.ge.

The - e r r i d i n g R o y a l t y I n t e r e s t s s h a l l be a p p l i c a b l e t o any

rene w a l s or extensions of the I.pase or any ew lease c o v e r i n g the

land covered by the Lease obtained by Assig , i t s successors or

a s s i g n s w i t h i n one (1) year a f t e r t e r m i n a t i o n or rele a s e of the

Lease.

The terms hereof s h a l l extend t o and be b i n d i n g upon Assignor

and i t s successors and assigns and Assignees and t h e i r h e i r s ,

p e r s o n a l r e p r e s e n t a t i v e s and assigns.

EXECUTED t h i s the 16th day f February, 1990, but e f f e c t i v e

November 2, 1989.

BRO ...LYN UNION EXPLORATION COMPANY, INC.

STATE OF TEXAS

COUNTY OF HARRIS

T h i s instrument was acknowledged before me cn t h i s t he 16th day of February, 1990, by James G. Floyd, P r e s i d e n t of Brooklyn Union E x p l o r a t i o n Company, I n c . , a Delaware c o r p o r a t i o n , on behalf oi said c o r p o r a t i o n .

NotAry P u b l i c i n and f o r the State of Texas

i '* r.

3

R E C E I V E D

ASSIGNMENT OF OVERRIDING ROYALTY INTERfcB*

Led,., i t , . , . ..,!

KNOW ALL MEN BY THESE PRESENTS:

THAT, Brooklyn Union E x p l o r a t i o n Company, I n c . , a Delaware

c o r p o r a t i o n , 1331 Lamar, Suite 1065, Houston, Texas 77010

("Assia j f o r and i n c o n s i d e r a t i o n of the sum of $10.00 and

o t h e r good and v a l u a b l e c o n s i d e r a t i o n p a i d by Randall Fleming,

1331 Lamar, Suite 1065, Houston, Texas 77010; Sammye L. Dees,

P. O. i 766, Sp r i n g , Texas 77383; Stephen E. Jackson, 36 Glen

Loch, Sugarland, Texas 77479; Stanley W. Anderson, 1719 E a r l of

Dunmore, Katy, Texas 77449; and Joseph E. B a t c h e l o r , 12207 Sugar

S p r i n g s , Houston, Texas 77077 ( c o l l e c t i v e l y , "Assignees"), the

r e c e i p t and s u f f i c i e n c y of which are hereby acknowledged, hereby

t r a n s f e r s , assigns and conveys, w i t h o u t w a r r a n t y of t i t l e e i t h e r

e x p r e s s or imp l i e d , unto

Randall Fleming .0025194 of 8/8ths Sammye L. Dees .0025194 of 8/8ths Stephen E. Jackson .0025194 of 8/8ths Stanley W. Anderson .0025195 of 8/8ths Joseph E. B a t c h e l o r .0025194 of 8/8ths

o v e r r i d i n g r o y a l t y i n t e r e s t s ("Overriding Royalty I n t e r e s t s " ) of

t h e o i l , gas and o t h e r minerals i n and under and t h a t may be

produced and saved from the land covered by the f o l l o w i n g d e s c r i b e d

l e a s e (tbe "Lease") :

O i l and Gas Lease of Submerged lands dated e f f e c t i v e November 1, 1989, between the U n i t e d States of America, l e s s o r , and Apache Corporation, e t a l , Lessee, c o v e r i n g a l l of Block 649, Matagorda I s l a n d Area, OCS Leasing Map, Texas Map No. 4, c o n t a i n i n g 5,760 acr e s , more or l e s s , and bearing S e r i a l Number OCS-G 11265.

TO HAVE AND TO HOLD the O v e r r i d i n g R o y a l t y I n t e r e s t s , t o g e t h e r

w i t h a l l and s i n g u l a r t h e r i g h t s and appurtenances t h e r e t o i n anywise

b e l o n g i n g unto the Assignees, t h e i r h e i r s , personal r e p r e s e n t a t i v e s

and assigns, s u b j e c t t o the terms and p r o v i s i o n s of t h i s assignment.

I f As: ignor should be e n t i t l e d t o r e c e i v e revenues from the

s a l e of o i l and gas produced from the land covered by t h e Lease

as a r e s u l t of an op e r a t i o n , commonly known as "non-consent

p r o v i s i o n s - ' , of the p e r t i n e n t operating agreement covering such lond,

the Assignees s h a l l be e n t i t l e d to three and t h i r t y - f o u i hundredths

p e r c e n t (?.34%) of such revenues as long as such revenues are

r e c e i v e d by Assignor. I f Assignor should not oe e n t i t l e d t o r e c e i v .

revenues frcm the s a l e o f o i l and gas produced from the land covered

by t h e Lease as a r e s u l t of an o p e r a t i o n , commonly knowr as

"non-consent p r o v i s i o n ;", of the p e r t i n e n t o p e r a t i n g agreement

c o v e r i n g such land, the amount otherwis.- payable t o the Assignees

s h a l l bo reduced by t h r e e and t h i r t y - f o u r hundredths percent (3.34%)

of such revenues us long as such revenues are not r e c e i v e d by

A s s i g n o r . Assignor, as used in t h i s paragraph, s h a l l include

s i n g u l a r l y A ignor and each of i t s assigns.

The Overriding R o y a l t y I n t e r e s t s s h a l l be f r e e and c l e a r or

i l l c o s t s of development and operation of the Lease, both upstream

and downstream of the wellhead, other than t r a n s p o r t a t i o n c o s t s ,

and s h a l l be free and c l e a r of a l l costs of marketing the o i i and

gas b u t s h a l l bear i t s share of a l l taxes l e v i e d a g a i n s t p r o d u c t i o n

from t h e Lease.

l h e Assignees, i n s o f a r as the O v e r r i d i n g Royalty I n t e r e s t s ,

s h a l l have the same r i g h t s , p r i v i l e g e s , e l e c t i o n s and e n t i t l e m e n t s

as does the Minerals Management Service, i n s o f a r as the r o y a l t y

under t h e Outer C o n t i n e n t a l Shelf Lands Act, as amended, 4 3 U.S.C

133 e t seq. and ie r e g u l a t i o n s issued thereunder.

N o t h i n g hei l o o n t a i n e d s h a l l be construed as imposing any

o b l i g a t i o n , expre: or i m p l i e d , upon Assignor t o maintain or preserve

the Lease, i n f o r c e and e f f e c t , to d r i l l w e l l s or t o conduct any

o t h e r o p e r a t i o n whatsoever. Assignor s h a l l have no express or

i m p l i e d o b l i g a t i o n t o Assignees t o d r i l l o f f s e t w e l l s , t o

reasonably develop or t o f u r t h e r explore.

No change i n ownership, or r i g h t t o r e c e i v e the O v e r r i d i n g

Roy • I t y I n t e r e s t s , or ar p a r t t h e r e o f , however accomplished, s h a l l

o p e r a t e t o enla- 7e t h u o b l i g a t i o n s or d i m i n i s h the r i g h t s of

A s s i g n o r , and n o t w i t h s t a n d i n g any o t h e r a c t u a l oi c o n s t r u c t i v e

2

n o t i c e t h e r e o f , such c h a n g e s h a l l n o t be b i n d i n g upon A s s i g n o r f o r

any p u r p o s e u n t i l t h i r t y (10) days a f t e r r o c e i p t by A s s i g n o r o f

i n s t r u m e n t s o r o t h e r l e g a l l y a u t h e n t i c a t e d w r i t t e n e v i d e n c e

s a t i s f a c t o r y t o A s s i g n o r c o n s t i t u t i n g t h e c h a i n o f t i t l ? o f such

c h a n g e .

T h e O v e r r i d ; n g R o y a l t y I n t e r e s t s s h a l l be a p p l i c a b l e t o any

r e n e w a l s o r e x t e n s i o n s o f t h e Lease o r any new l e a s e c o v e r i n g t h e

l a u d c o v e r e d by t h e L e a s e o o t a i n e d by A s s i g n o r , i e s s u c c e s s o r s o r

a s s i g n s w i t h i n one ( 1 ) y e a r a f t e r t e r r r . i r a t i o n o r r e l e a s e o f t n e

Le i s e .

The terms hereof s h a l l extend t o nd be b i n d i n g upon Assignor

and i t s successors ana assigns and Assignees and t h e i r h e i r s ,

p e r s o n a l r e p r e s e n t a t i v e s and assigns.

EXECUTED t h i s t he 16th day of February, 1990, but e f f e c t i v e

November 2, 1989.

BROOKLYN UNION EXPLORATION COMPANY, INC.

STATE OF TEXAS

COUNTY OF HARRIS

T h i s instrument wis acknowledged before me on t h i s the 16th day of F e b r u a r y , 199C, b James G Floyd, President of Brooklyn Union

p r a t i o n 'mpany, i . e . , a Delaware c o r p o r a t i o n , on behalf of said c o r p o r a t i o n .

Notary P u b l i c i n and f o r che State" of Texas

Srniikkju ilnimt ExjiUrrattmt (Eumjiamj, iiu. 1 I A M A I ? S U I T | ior, 1:.

T O I , 1

71 "5 I 652 Jfi-l 1

May 2, 1990

R E C E I V E D

M i n e r a l s Management S e r v i c e G u l f o f Mexico OCS Region 12Gl Elmwood Park B o u l e v a r d Mew r l e a n s , L o u i s i a n a 70122-239.

M a t

Mineral. M - : —• ' Ser.-ice UaMiiii 4 Lnviicii;.ii.Tit

A t t e n t i o n : Mrs. L a N e l l e Boehm LE-3 -1

Re: T w e n t y - f o u r (24) Assignments o f O v e r r i d i n g Roya l t y I n t e r e s t

Ger.1 :emen:

Ei Lor- I are xerox c o p i e s of the f o l l o w i n g instruments which we r e . j e s t be f i l e d i n the. a p p r o p r i a t e lease f i l e f o r p u b l i c n o t i c e p u r ses.

1. assignment of O v e r r i d i n g Royalty i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , co v e r i n g OCS-G 11307, Galveston Block 252.

2. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 trom Brooklyn Union E x p l o r a t i o n Company, I n c . oo Randall Fleming, e t a l , co v e r i n g OCS-G 11309, Galveston Block 2 34.

3. Assignment o f O v e r r i d i n q Royalty i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a. coveri n g OCS-G 11320, a l v e s t o n Block 345.

4. Assignment o f O v e r r i d i n g Royalty i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , co v e r i n g OCS-G 11321, Galveston Block 354.

5. Assignment o f O v e r r i d i n g Royalty i n t e r e : da'_ed January 31, 1990 frcm Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randal] Fleming, e t a l , co v e r i n g OCS-G 11363, High I s l a n d Block A-7.

Srnnkljnt In ton ExplnnH'iin (tamjiurtij. hit

Fage 2 M i n e r a l s Management S e r v i c e May 2, 1990

6. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n romp&r.y, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11362, High I s l a n d Block 204.

7. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t e f ' - c t i v e November 2, 1989 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11265, Matagorda Islanc. Block 649.

fa. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t e f f e c t i v e October 2, '89 from Brooklyn Union E x p l o r a t i o n Comoany, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11268, Matagorda I s l a r . r i i o c k 671.

9. Assignment o f O v e r r i d i n g Roya. i n t e r e s t dated January 3 1 , 1990 from Brooklyn I ion E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11241, Mustang I s l a n d Block A-21.

10. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Un<on E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , c o v e r i n g CCS-G 11214, Mustang I s l a n d Block 738.

11. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11225, Mustang I s l a n d Bleck 809.

12. Assignment o f O / e r r i d i n g Roya.tv i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Randall Fleming, e t a l , c o v e r i n g OCS-G 11234 , Mustang I s l a n d Li 1 ock 850.

13. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, Jnc. t o George A. K e l l y , J r . e t a l , covering OCS-G 11307, Galveston Block 252.

14. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o George A. K e l l y , J r . e t a l , covering OCS-G .1309, Galveston Block 284.

Bronklun Union EjpLirnttun (tnmpnnu inc

Pago 3 Min -als Management S e r v i c e May , 1990

Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o George A. K e l l y , J r . e t a l , covering OCS-G 11320, Galveston block 345.

IC. Assignment f O v e r r i d i n q Royalty i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n mpany, I n c . t c George A. K e l l y , J r . et aa,

covering OCS-G 11321, Galveston Block 354.

17. Assiqnment of O v e r r i d i n g R o y a l t y I n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o George A. K e l l y , J r . e t a l , covering OCS-G 3 1363, High I s l a n d Bloc* A-7.

18. Assiqnment o f O v e r r i d i n q R o y a l t y i n t e r e s t dated January 31, 199C from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Georqe A. K e l l y , J r . et a l , covering OCS-G 11362, High I s l a n d Block 204.

19. Assiqnment o f O v e r r i d i n q R o y a l t y i n t e r e s t e f f e c t i v e November 2, 1989 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Joe P. Marr, e t a l , co v e r i n g OCS-C 11265, Matagorda I s l a n d Block 649.

20. Assiqnment of O v e r r i d i n g R o y a l t y i n t e r e s t e f f e c t i v e October 2, 1989 from Brooklyn Union E x p l o r a t i o n Ccmpany, I n c . t o Joe P. Marr, e t a l , co v e r i n g OCS-G 1126S, Matagorda I s l a n d Block 671.

21. Assignment o f O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 fiom Brooklyn Union E x p l o r a t i o n Company, I n c . t o George A. K e l l y , J r . et a l , c o v e r i n g OCS-G 11241, Mustang I s l a n d Block A-21.

22. Assignment of O v e r r i d i n g R o y a l t y i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i c . Co »ny, I n o . t o George A. K e l l y , J r . t a l , cc r i n g OCS-G 11214, Mustang I s l a n d ck 738.

23. Assignment of O v e r r i d i n g Royalty i n t e r e s t dated January 31, 1990 from Brooklyn Union E x p l o r a t i o n Company, I n c . t o Georqe A. K e l l y , J r . et a l , c o v e r i n g CS-G 11225, Mustang I s l a n d Block 809.

BrooUirn lm. n Explnrat . n (Lim pa ay. itu

Page 4 M i n e r a l s Management S e r v i c e May 2, 1990

24. Assignment o f Ove i d i n g R o y a l t y i n t e r e s t da ted January 3 1 , 1T90 om B r o o k l y n Union E x p l o r a t i o n Company, I n c . t ^ oeorg? A. K ? l l y , J r . e t a l , c o v e r i n g OCS-G 11.-.34, Mus.tang I s l a n d Elock 850.

A l s o enclosed i s E r o o k l y n Union ' s Check No. 90273 i n t h e amount o f S600.00 t o c o v e r t n e f i l i n g Jee.

Thank you.

Yours v e r y t r u l y ,

BROOKLYN UNION EXPLORATION COMPANY, INC. r .

Sammye L. Does Vice P r e s i d e n t Land

SLD:cb

Enclosures

RECEIVED ASSIGNMENT OF O'. PRIDING ROYA. i Y INTEREST

'• " •'- I'M, KNOW ALL MAN BY THESE PRESENTS: MinercS Mariar"n«"!f Servia

m«4U.. j<iment

THAT, Bro o k l y n Union E x p l o r a t i o n Companv, In c . . a be]awai i

c o r p o r a t i o n , 1331 Lamar, .. i t e 1065, Houston, Texas. ""'010 and

Smith Offshore E x p l o r a t i o n Company, a Delaware c o r p o r a t i o n , 811

D a l l a s , Suite 800, Houston, Texa*- 7700? ( c o l l e c t i v e l y , "Assignor s")

f o r and in consido -at ;on of the sum of $10.oo and othe r goc 1 and

v a l u a b l e c o n s i d e r a t i o n pt.id by H. A l l e n Weatherby, 6130 Sai F e l i p e ,

Houston, Texas ' " ! 7 ("Assignee"), the r e c e i p t and s u f f i c i e n c y of

whi c h aro hereby acknowledged, hereby t r a n s f e r . assign J id convey

u n t o Assignee, w i t h o i - warranty o i t i t l e e i t h e r express «. i m p l i e d ,

.0005404 of B/J'chs o v e r r i d i n g r o v j l t y i n t e r e s t ("Overrid ig Royalty

I n t e r e s t " ) of the o i i gas rr. 1 other m i n e r a l s i n and under, and t h a t

may bo produced and saved from the land co\ •. r*»d by the f o l l o w i n g

d e s c r i b e d lease, ( t h e "Lease"):

O i l anu Gas Lease r . Subine z ( " La. ds dated e f f e c t i v e November- 1, 1989, between Thi i\ ) te h States of America, Lessor and toache Corpi ' i i t i o - i e:. a l , Lessee, c o v e r i n g a l l of Bleck 649, Matagordr. i t , nu Area, OCS Leasing Hap, Texas Map No. 4, c o n t a i n i n g 5,'< .00 acres, more or l e s s , and bearing S e r i a l Number 0 1.165.

Tue O v e r r i d i n g Rjya.ty I n t e r e s t s h a l l be borne by

As s i g n o r s as f o l l o w s :

Brooklyn Union E x p i r a t i o n Company, Inc. 47.36842*

Smith O f f s h o r e E x p l o r a t i o n Company 63158%

TO HAVE AND TO HOLD the O v e r r i d i n g Royalty i n t e r e s t ,

t o g e t h e r witn a l l and s i n g u l a r th» r i g h t s and appu tenances t h e r e t o

i n anywise oelcn g i n q u^ro the Assignee, h i s h e i r s personal

r e p r e s e n t a t i v e s and a s s 4 a n , s u b j e c t t o the terms and p r o v i s i o n s of

t h i s assignment.

This assignment i s made expvossly subject i D the terms and

p r o v i s i o n s of O v e r r i d i n g Royalty < reement date March 31, 1988,

e f f e c t i v e January 1, 1987, by and between H. A l i e n Weatherby ^od

B r o o k l y n Union L x p l o r a t i o n Cc any, Ino. and S n i t h Of i r 'Oc

Kxpl o r t i on Corpany.

Thc O v e r r i d i n g Royalty I n t e r e s t s h a l l e :: oe and c l e a r --f

a l l c o s t s ol developi _.vt and o p e r a t i o n of t r - -ease bo*"h upstream

arid downstream of thc wel l h e a d , other than tr.;.;:.; o r a t i o ; .; s but

s h a l l be i t u share of a l l taxes l e v i e d a g a i n s t product . the

. • • a a < • .

The A s s i g n e e , i n s o f a r as t h e C v e r r i d i n . 1 va I t j I n f j r t s t ,

s h a l l h a v e t h e same r i g h t s , p r i v i l e g e s , e l e c t i o n ' n d e n t i t l e m e n t " ;

as d o e s t h e M i n e r a l s Management S e r v i c e i r - l a r as t h e "-oy-3.lt /

U i . u e r 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 , as amended. -13 U . ' C.

1313 e t s e q . and che r • . i a t i o n s i s s u e d t h e r e u n d e r .

h ' o t h i n o r e r e i . . c o n t a i n e d s h a l l be c o n s t r u e d as i m p o s i n g any

o b l i g a t i o n e x p r e s s o r i m p l i e d upon A s s i g n o r s t o m a i n t a i n O" p. e s o r v e

t h e L e a s e , i n l o r . . c u 1 • • ' f e e . t o d r i l l w e l l s o r t o c o n ; u c ' any

o t h e r o p e r a t i o n w h a t s o e v e r . A s s i g n o r s s h a l l have no e p r e s s o r

i m p l i e d o b l i g a t i o n t o A s s i g n e e t o d r i . f f s e t w e l l s , t c r e a s o n a b l y

d e v e l o p o r t o ! u r t h e r e x p l o r e .

No • hange i n o w n e r s h i p , o r r i g h t t e r e c e i v e che O^r r i d i n g

R o y a l t y l . t e r e s t , ttr a n y p a r t o r e o f h o w e v e r a c c o m p l i c e . . ' s i a l l

o p e r a t ' CO e n l a r g e t h e o b l i q a t i o r _ > c " d i m i n i s h t h e r i g h t o f

A s f a i a n d r s , ai 1 ne t ' - , ; " .. .. na any o t h e r a c t J, o r c o n s t r u c t i v e

n o t . 1 o t i e . . u i , sucn ^ ••' • s h a i l n o t be b i n d i n q upon A s s i g n o r s f o r

ar.y p u r p o s e u r . t i ] . h i r t y ( 3 0 ) days a f t e r r e c e i p t by A ' s i g n e r s o f

i n s t r u m e n t s o r o t h e r l e g a l l y a u t n e i t ; i c a t e d w r i t t e n e v i d e n o

s a t i s f a c t o r y t o A s c i g r > o r s c o n s t i t u t i n g t h e c h a i n o f t i t l e c f s u c n

c h a n g e .

The O v e r r i d i n g R o y a l t y I n t e r e s t - h a l l ue a p p l i c a b l e n any

r e n e w a l ' - or e x t e n s i o n s c f t h e Lease o r any new l e a s e c o v e r i n g t h e

l a n u c o h e r e d by t h e L e a s e o b t a i n e d by A s s i g n o r s , t h e i r s u c c e s s o r s

o r a s s i g n s •.• . ' i th;: ; one 1) yec.r a f t e r t e r m i n a t i o n ot r e l e a s e o f t h e

- 2 -

The t e r m c h e r e o f s h a l l extend t o

A s s i g n o r s and t h a i r succes so r s and a s s igns

h e i r s , pe rson .1 r e p r e s e n t a t i v e s ancl a s s i g n s .

ar d be b i n d i n g upon

anc Af s ignee and h i s

EX'-'CUTED th.s / J day of £t 1990

BROOKLYN UNION EXPLORATION COMPANY, INC,

SMITH OFFSHORE EXPLORATION COMPANY

By "H . ' 'siruor

P res :den t

..o STATE OF TEXAS

v. ">UNTY OF H\RRIS

Thi*. ' r ' . i . ient was ac 1 nov.i edged be-.ore me on 199 0, >y Jar.es G. F l o y d , Pres iden t c f Br o o k l y n <Jnion E x p l o r a t i o n Company, I n c . , r. Oe.ip.ware c o r p o r a t i o n . . o . b e h a l f o f sa id c o r p o r a t i o n .

Nov i y •'ynblic i n and f o r the >t n x a s

' 1 •- * f .

THE STATE OF TEV\S

COUNT"/ ov \iP\~lS

T h i s in s t rumen t was acknowledged b e f o r e me on , 1 9 9 0 , by l i s t e r H. S m i t h , Pres ident o f Smith O f f s n o . e E x p l o r a t i o n Company, a Delaware c o r p o r a t i o n \n b e h a l f o f s a i i co. -I-.L - t i o n .

r56

V COLETTE S BAW.'i U. £ 6

'PiCiscsuKO'ic.*.*; « Nota ry i-uh" i c i n e-id f o r the i. ' ^ \ ^ J ^ l ' J MY CO'-.viiS'ON f v - £ j S t a t e '. 3S

'(. N s ^ L 2 t - > ' JANUARY 31. l'->4

SMITH OFFSHORE EXPLORATION COMPANY *»11 LALLAN Sun.. 800

P. O. Box 52890

HOUSTON T K X A S 7 7 U 5 2

713/851-9102

May 24, 1990

Minerals Management Service LE-3-1 12C1 Elmwood Paik Boulevard Ne v Orleans, Louisiana 70123-2394

Gentlemen:

F' '.osed please fine'1 a check in the amount of $775 to cover tiie Y25 each filing fee t t*-t i. signment.. of Overriding Royalty Interest from Brooklyn Union Explorar'on Company, Inc., (Assignor) to H. Al'en Weatherby (Assignee) as shown on the attached .ist.

V7e also enclose a duplicate copy of this letter for yt>" to indicate that these iss'gnmevs have been filed and return to us.

Sincerely,

Bonnie J. Samford

hjsMMS Enclosure

R E C E I V E D

MAY 2 \ 1390

Miner:.', ttan gtoient Service Leasing 'flvironmefll

Minerals Managen n' Service May 24, lv-.)

ASSIGNMENTS OF ORK' .OR n . ALLF.N W E A f H E R B Y FOR FOLLOWING LEASI S:

East Cameron B W \ N H , QrS-G °439 East Cameron BU,:!. VS OCS-C g4h3 East Came rc .• RWn.k *49 OC S- » 94?.-Euge.v Island Bu. 40, OCS-G 9570 Ship Shoal Block OCS-G 10763 Ship Shoal Block 1 10, OCS-G 1076h South Marsh Island Block 26, OCS-C. 9535 Soulh Marsh Island Block 264, OCS-C. 107KJ Seal Marsh Island Block 270. OCS-G 10712 3< ut Marsh island Block 2M. OCS-G 10713 S< uth Ma sh Island Block 280, OCS w 5197 Vermilion Block 95, OCS-G 5408 West Cameron Block 157, OCS-G 9410 Galveston Block 252, OCS-G 11307 Galveston Block 284, OCS G '1309 Galvt ton Block 345, OCS-G ?2C, Galveston Block 354, OCS G ! ' ?1 Galveston Block 421, OCS-G 90^ High Island Biock A-7, OCS-G 113C3 »!:th island Block ' OCS-C. 10288 High Island Block 20 ( S-G 11302 Nl , 2 High Island bloc* OCS-G 9079 K M - gorda I.land Block f>4>, < )CS-G 11265 Ma !:orda !ilan.J Block 650, * )CS-G 8998 Malawi • - Mand Block 671. OCS C Matagorda Island Bio. ' 572, OCS-G i0198 Mustang Island i A 1, OCS-G 1016S Mustang Island i 1 . I. A-21, OCS-G 11241 MiK'anp Isl;n.o 3 , ck 738, OCS G 11214 h ng Uano Block 809 OCS-G 11225 fvi ang Island BL>cl c' », OCS-G 11234