Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden v. Edwin v. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shella Acker (Reinke) Bonner, and Edwin Scott Acker

Case Information

NO. 04-15-00534-CV

FILED IN
IN THE FOURTH COURT OF APPEALS AT SAN AMPIONIO, TEXAS
12/18/15 4:46:17-PM-
KEITH E. HOTTLE
PATRICIA JO KARDELL, MARTIN MURPHY SNOWDEN, NIRSKEY DARRELL SNOWDEN AND MARY DELILLA SNOWDEN, Appellants,
v.
SWIFT ENERGY OPERATING, LLC,
Appellee.

Appealed from the ${218}^{\text{th}}$ Judicial District Court of La Salle County, Texas

APPELLANTS' BRIEF

Gilbert Vara, Jr.
State Bar No.: 20496250
&;
Richard J. Karam
State Bar No.: 11097500
The Law Office of Gilbert Vara, Jr.
&;
Law Offices of Richard J. Karam
The Ariel House
8118 Datapoint Dr.
San Antonio, Texas 78229-3228
Telephone: (210) 614-6400; Telecopy: (210) 614-6401
Emails: gilbert@varalaw.com &; rjkaram@aol.com
Attorneys for Appellants,
Patricia Jo Kardell, Martin Murphy Snowden,
Mickey Darrell Snowden, and Mary Delilla Snowden

IDENTITY OF PARTIES &; COUNSEL

Appellants:

Trial and Appellate Counsel: Richard J. Karam Law Offices of Richard J. Karam The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Email: rjkaram@aol.com Lead Appellate Counsel: Gilbert Vara, Jr. The Law Office of Gilbert Vara, Jr. The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Email: gilbert@varalaw.com

Appellees:

Trial Counsel:

Lead Appellate Counsel:

Elaine V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, Edwin Scott Acker

Wilson Calhoun Law Office of Wilson Calhoun 719 Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 Telephone: (361) 882-3300 Telecopy: (361) 888-5404 Email: Wilson@wcalhoun.com Audrey Mullert Vicknair

Law Office of Audrey Mullert Vicknair 802 N. Carancahua, Suite 1350 Corpus Christi, Texas 78401-0022 Telephone: (361) 888-8413 Telecopy: (361) 888-6207 Email: avicknair@vicknairlaw.com

TABLE OF CONTENTS

IDENTITY OF PARTIES &; COUNSEL ..... i INDEX OF AUTHORITIES ..... v STATEMENT ON ORAL ARGUMENT ..... vii STATEMENT OF THE CASE ..... viii ISSUE PRESENTED ..... $x$ ISSUE NUMBER ONE Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor's intent ..... x STATEMENT OF FACTS ..... 1 Nature Of The Appeal ..... 1 Procedural History ..... 2 Substantive Facts ..... 5 Murphy Partition Deeds and Estate Plan ..... 5 Conveyance/Re-Conveyance of Snowden Ranch Royalty Interests ..... 8 This Court of Appeals previously interpreted the 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD, and the 1953 Declaration and Agreement ..... 13 The instant Royalty Interest Dispute is Limited to Mabel Snowden Heirs and Johnie Acker Heirs ..... 15 STANDARDS OF REVIEW ..... 16

SUMMARY OF THE ARGUMENT

ISSUE NUMBER ONE (RESTATED) Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor's intent. ..... 18 ARGUMENT AND AUTHORITIES ..... 18 The Mabel Snowden Heirs Met Their Burden of Proof ..... 18

1. Documents are Unambiguous ..... 20
2. Winslow v. Acker: The declaration of rights in this prior appeal constitutes Res Judicata and/or Collateral Estoppel to the issues in the instant appeal ..... 21
3. Attorneys' Fees - Declaratory Judgment ..... 28 CONCLUSION AND PRAYER ..... 28 CERTIFICATE OF SERVICE ..... 30 APPENDIX ..... 31

INDEX OF AUTHORITIES

CASES

Altman v. Blake, 712 S.W.2d 117 (Tex.1986) ..... 27 Amstadt v. U.S. Brass Corp., 919 S.W.2d 644 (Tex.1996) ..... 21 Barr v. Resolution Trust Corp., 837 S.W.2d 627 (Tex.1992) ..... 21 Bonniwell v. Beech Aircraft Corp., 663 S.W.2d 816 (Tex.1984) ..... 21 Cathey v. Booth, 900 S.W.2d 339 (Tex.1995) ..... 16 City of Keller v. Wilson, 168 S.W.3d 802 (Tex.2005) ..... 17 Comm'rs Court of Titus County v. Agan, 940 S.W.2d 77 (Tex.1997) ..... 16,17 Harris v. Windsor, 156 Tex. 324, 294 S.W.2d 798 (Tex.1956) ..... 24,25 Hausser v. Cuellar, 345 S.W.3d 462 (Tex.App.-San Antonio 2011, pet. denied) ..... 22,23 Johnson v. Brewer &; Pritchard, P.C., 73 S.W.3d 193 (Tex.2002) ..... 17 Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App-San Antonio 1989, writ denied) .....19, 22, 27

Luckel v. White, 819 S.W.2d 459 (Tex.1991) ..... 20 Mann Frankfort Stein &; Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844 (Tex.2009) ..... 17 Myrad Properties, Inc. v. La Salle Bank Nat. Ass'n, 300 S.W.3d 746 (Tex.2009) ..... 25 Neel v. Killam Oil Co., Ltd., 88 S.W.3d 334 (Tex.App.-San Antonio 2002, pet. denied) ..... 23 Nelson's Legal Investigating &; Consulting v. Myrick, No. 04-11-00158-CV, 2011 WL 6090082 (Tex.App.-San Antonio Dec. 7, 2011, no pet.) (mem. op.) ..... 17 Provident Life &; Accident Ins. Co. v. Knott, 128 S.W.3d 211 (Tex.2003) ..... 17 Stewart &; Title Guar. Co. v. Aiello, 941 S.W.2d 68 (Tex.1997) ..... 20 TEXAS STATUTES Tex. Civ. Prac. &; Rem. Code Ann. § 37.004 (West 2007) ..... 28 Tex. Civ. Prac. &; Rem. Code Ann. § 37.009 (West 2007) ..... 28 TEXAS RULES Tex. R. App. P. 4 (e) ..... 30 Tex. R. App. P. 9.5 (a) ..... 30 Tex. R. App. P. 166a (c) ..... 17 Tex. R. App. P. 39.1 (c) ..... vii Tex. R. App. P. 39.1 (d) ..... vii Tex. R. App. P. 39.1 (e) ..... vii

STATEMENT ON ORAL ARGUMENT

The court of appeals should grant oral argument for the following reasons: a. Oral argument would give the court a more complete understanding of the facts presented in this appeal as the presentation would illustrate the purpose and scope of the numerous conveyances. See Tex. R. APP. P. 39.1 (c). b. Oral argument would significantly aid the court of appeals in deciding this case as the presentation would allow direct answers to the use and limits of prior incorporated conveyances in a deed. Tex. R. App. P. 38.1 (e), 39.1 (d).

STATEMENT OF THE CASE

Nature of the Case: The dispute emanates from a series of deeds commencing in 1948 when the parties' common ancestor, J.E. Murphy, put into effect an estate plan where his descendants would share, to some extent, royalties produced on each of their respective lands.

On December 1, 2009, Swift Energy Operating, LLC, Lessee, and Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell, Snowden, and Mary Delilla Snowden, as Lessor, ("the Mabel Snowden Heirs"), executed a certain Oil, Gas &; Mineral Lease, ("Swift Lease"). The Swift Lease provided a $25\%$ royalty to the mineral estate owners.

The Mabel Snowden Heirs contend that Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker, George, Sheila Acker Reinke, and Edwin Scott Acker, ("the Johnie Acker Heirs"), are entitled to only an undivided $1/5$ th of $1/8$ th royalty interest (or $1/5$ th x $12.5\%$ royalty) under the Swift Lease, or, stated differently, $2.5\%$ out of the $25.0\%$ royalty interest.

The Johnie Acker Heirs, contend that they are entitled to $1/5$ th of $1/4$ th royalty interest (or $1/5$ th x $25\%$ royalty) under the Swift Lease, i.e., $5\%$ out of the $25\%$ royalty interest.

Inexplicably, Swift Energy Operating, LLC, withheld $7-1/2\%$ of the royalties under the Swift Lease, rather than the $2.5\%$ in dispute.

Trial Judge: Honorable Donna S. Rayes, ${218}^{\text{th}}$ Judicial District Court, LaSalle County, Texas

Judgment: On May 30, 2013, the Mabel Snowden Heirs filed their Motion for Summary Judgment with attached viii

exhibits. (CR 17-276) On May 31, 2013, the Johnie Acker Heirs filed their motion for summary judgment with exhibits. (CR 277-331) On June 20, 2013, Swift Energy filed its response to the respective motions for summary judgment filed by the Snowdens and the Ackers. (CR 447-593) On June 20, 2013, the Mabel Snowden Heirs filed their response to the motion for summary judgment filed by the Johnie Acker Heirs which Swift Energy corrected in a June 25, 2013 filing. (CR 594 &; 600) On July 2, 2013, the Johnie Acker Heirs filed supplemental briefing regarding their motions for summary judgment. (CR 604) On July 3, 2013, the Mabel Snowden Heirs filed their response to the supplemental briefing. (CR 608)

On October 22, 2013, in a letter ruling filed on October 25, Judge Stella Saxon granted the motion for summary judgment filed by the Johnie Acker Heirs. (CR 613) On April 3, 2014, the trial court entered its Order granting the motion for summary judgment filed by the Johnie Acker Heirs and denying the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 640) On July 21, 2015, Judge Donna S. Rayes entered final judgment for the Johnie Acker Heirs. (CR 654) On August 19, 2015, the Mabel Snowden Heirs filed their joint notice of appeal. (CR 673)

ISSUE PRESENTED FOR REVIEW

ISSUE NUMBER ONE

Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor's intent.

TO THE HONORABLE COURT OF APPEALS:

Appellants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden, ("the Mabel Snowden Heirs"), submit their Appellants' Brief and respectfully show:

STATEMENT OF FACTS ^[1]

Nature Of The Appeal

This appeal concerns the construction of a certain "Correction Warranty Deed" and the intent of the grantor when considered together with the provisions of other specific documents referenced therein.

The Mabel Snowden Heirs maintain that the trial court must consider and incorporate all provisions of the documents expressly referenced in the Correction Warranty Deed, as well as the circumstances surrounding the execution of the Correction Warranty Deed, in order to correctly interpret it and the grantor's intent. In doing so, the proper construction to be given the Correction Warranty Deed clearly would show that the grantor did not intend to re-convey more property to the grantee than what was originally received by the grantor. Furthermore, the intent and purpose of the Correction Warranty Deed is, and was, to describe the interest being re-

conveyed in terms of a "non-participating royalty interest" rather than a "mineral interest" with reservations.

The Johnie Acker Heirs maintain, to the contrary, that the Correction Warranty Deed should be read without regard to the referenced prior 1965 deed that it corrected in order to grant them more than what was originally given to Mabel Snowden.

This Court of Appeals, in a previous related case involving the same parties, interpreted these same mineral conveyances. Consequently, the intent and character of the interests being conveyed is clear as to the conveyances referenced in this appeal. Accordingly, this Court should reverse the summary judgment granted in favor of the Johnie Acker Heirs and render summary judgment in favor of the Mabel Snowden Heirs.

Procedural History

On June 21, 2012, Swift Energy filed Plaintiff's Original Petition in Interpleader. ^[2] (CR 001-010) On July 30, 2012, the Mabel Snowden Heirs filed their original answer, original counterclaim, and cross-action in interpleader. (CR 017-047) On July 30, 2012, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and

Edwin Scott Acker, ("the Johnie Acker Heirs"), filed their original answer and cross-claim. (CR 048-053)

On May 30, 2013, the Mabel Snowden Heirs filed their Motion for Summary Judgment with attached exhibits. (CR 056-276; App. 14) On May 31, 2013, the Mabel Snowden Heirs filed their first amended original answer, first amended original counterclaim, and first amended crossaction in interpleader. (CR 332-362) On May 31, 2013, the Johnie Acker Heirs filed their motion for summary judgment with exhibits. (CR 277-331; App. 16) On June 18, 2013, the Johnie Acker Heirs filed their original answer to the Mabel Snowden Heirs first amended cross-claim (CR 363364) and their response to the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 365-46; App. 15)

On June 20, 2013, Swift Energy filed its response to the respective motions for summary judgment filed by the Mabel Snowden Heirs and the Johnie Acker Heirs. (CR 447-593 App. 17) On June 20, 2013, the Mabel Snowden Heirs filed their response to the motion for summary judgment filed by the Johnie Acker Heirs. (CR 594-599; App. 18) On June 25, 2013, Swift Energy filed its correction. (CR 600-603; App. 19)

On July 2, 2013, the Johnie Acker Heirs filed supplemental briefing regarding their motions for summary judgment. (CR 604-607; App. 20) On

July 3, 2013, the Mabel Snowden Heirs filed their response to the supplement. (CR 608-612; App. 21)

On October 22, 2013, in a letter ruling filed on October 25, Judge Stella Saxon granted the motion for summary judgment filed by the Johnie Acker Heirs. (CR 613; App. 22) On March 18, 2014, counsel for the Johnie Acker Heirs filed an affidavit of authentication of business records concerning attorneys' fees. (CR 614-628 &; 629-637; App.23) On April 3, 2014, the trial court entered its Order granting summary judgment for the Johnie Acker Heirs and denying the motion for summary judgment filed by the Mabel Snowden Heirs. (CR 640-649; App. 2)

On May 1, 2015, the Johnie Acker Heirs filed a notice of non-suit of their claims against the following defendants: Lola Mae Akers, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Pamela Boss, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunger, Lourene Yvonne Woodall Vance, Sharon L. Williams, and Daniel Wilson. (CR 650-651) On May 4, 2015, the trial court granted the non-suit. (CR 639)

On July 21, 2015, Judge Donna S. Rayes entered final judgment. (CR 654-672; App. 1) On August 19, 2015, the Mabel Snowden Heirs filed their joint notice of appeal. (CR 673-698) On August 25, 2015, the Clerk's Record

was requested by the Mabel Snowden Heirs and it was filed on August 26. (CR 699-705; 706)

Substantive Facts

Murphy Partition Deeds and Estate Plan

J. E. Murphy, now deceased, had five (5) children: (i) Mabel M. Snowden, (ii) Johnie Lorene Acker, (iii) Edna Mae Jones, (iv) Julia Authelia Akers, (v) Emmett Granvel Murphy. The Mabel Snowden Heirs are the children of Mabel M. Snowden. The Johnie Acker Heirs are the heirs of Johni Lorene Acker. J. E. Murphy owned four (4) separate ranches prior to his death. Upon his death, his 5 children owned undivided interests in each of the ranches, including the entire mineral estate. In accordance with the estate planning wishes of J. E. Murphy, all 5 children executed 4 deeds on October 21, 1948 partitioning the surface estates of the 4 ranches to his 4 children excluding Mabel M. Snowden. In lieu of conveying a ranch to Mabel M. Snowden, she received cash of equal value since Mabel M. Snowden had previously acquired a ranch in 1945 in Dimmit and La Salle Counties. (CR 71-88; App. 3) (CR o89-094; App. 4)

Each of the four separate surface deeds to the four children, ("1948 Murphy Estate Partition Deeds"), provides as follows:

" ... the parties (the 5 children) shall continue to own and hold in common all of the oil, gas, and other minerals in the same undivided proportion .... it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate ... shall have the exclusive right to execute ... mineral lease(s) ... and receive, as (his/her) separate property, such bonuses, oil payments, and rentals as may be paid under said .. mineral leases ... except that (he/she) shall reserve in each .... mineral lease ... a base one-eighth (1/8) royalty interest for the benefit of (herself/himself) and the other four children .. in the same proportion they now own same." (CR 71-88; App. 3)

Six days thereafter, on October 27, 1948, Mabel M. Snowden executed a Non-Participating Mineral Deed, ("1948 Snowden NPMD"), in connection with her existing ranch in Dimmitt and LaSalle Counties, (the "Snowden Ranch"). In furtherance of the estate planning design of J. E. Murphy, the 1948 Snowden NPMD conveyed an undivided four-fifths (4/5) interest in and to $1/8$ th of the royalty from all oil, gas and minerals in and under the Snowden Ranch to the 4 siblings of Mabel M. Snowden. The 1948 Snowden NPMD specifically contained a reservation identical in substance as the 1948 Murphy Estate Partition Deeds, to-wit: "It is further agreed that Grantees [the other four siblings] shall have no interest in any bonus money or oil payment above the one-eighth (1/8th) royalty received by the Grantors in any future lease or leases given on said land and that it shall not be necessary for the Grantees to join in any such lease or leases so made; that Grantees shall receive under such lease or leases four-fifths (the same being one-fifth ( $1/5$ th) to each Grantee) part of all the oil, gas and other minerals taken and saved under any such lease or leases and he or she shall receive the same out of the royalty provided for in such lease or leases, but Grantees shall have no part in the

annual rentals paid to keep such lease or leases in force until drilling is begun." (CR 095-100; App. 5) (emphasis added)

Mabel M. Snowden thereby conveyed only a fixed $1/5$ th of $1/8^{\text{th}}$ royalty to each of her four siblings, including Johnie Lorene Acker, in the Mabel Snowden NPMD. (CR 095-100; App. 5)

In 1953, the five siblings wanted confirmation from each other as to the estate planning intent of their father and, in particular, their respective rights as surface owners to the mineral estate on their lands. (CR 101-106; App. 6) Accordingly, on December 9, 1953, Johnie Lorene Acker and Mabel Mullen Snowden, as well as the other siblings, executed a recordable declaration and agreement, ("Declaration &; Agreement"), confirming to each other as follows: "[We] hereby declare, that in making the division of the property in the Estate of J. E. Murphy, deceased, it was the intention of said parties to grant to the party receiving the surface, the right to receive all rentals from oil, gas and mineral leases then on said land so granted and to receive all bonuses and rentals on leases that might thereafter be made by the party to whom the surface was conveyed by Special Warranty Deed, provided, however, that the Lessor in said oil, gas and mineral lease, so executed by him or her, should reserve, in each oil, gas and mineral leases so executed, a basic one-eighth ( $1/8$ ) royalty interest ..... for the benefit of the Lessor and the other children of J. E. Murphy, deceased, and those claiming under said children or child (CR 101-106; App. 6) (emphasis added).

Conveyance/Re-Conveyance of Snowden Ranch Royalty Interests

On or about December 31, 1953, Mabel M. Snowden sought to borrow money against the Snowden Ranch. (CR 107-110; App. 7) As a condition of the loan, the bank required that Mabel M. Snowden own at least threefifths (3/5ths) of the mineral interest in the Snowden Ranch. (CR 107-110; App. 7) At that time, she only owned $1/5^{\text{th}}$ of $1/8^{\text{th}}$ royalty interest together with all rights to the minerals and production over and above the $4/5$ ths of $1/8^{\text{th}}$ royalty conveyed to her siblings. Consequently, at Mabel M. Snowden's request, Johnie Lorene Acker and Virginia Gertrude Akers Murphy, (being the surviving wife of Emmett Granvel Murphy and sole devisee under his Last Will and Testament), conveyed to Mabel M. Snowden their respective one-fifth $(1/5)$ of said $1/8$ royalty interests in the Snowden Ranch by Royalty Deed dated December 31, 1953, so that Mabel M. Snowden then owned a total of three-fifths (3/5) of said base (or basic) royalty interest in the Snowden Ranch together with all rights to the minerals and production therefrom over and above the remaining $2/5$ ths of $1/8^{\text{th}}$ royalty in favor of her other siblings, ("1953 Royalty Deed"). (CR 107110; App. 7)

When Mabel M. Snowden paid the note to the bank, she re-conveyed the same royalty interest back to Johnie Lorene Acker on March 25, 1965 by

instrument, ("1965 Mineral Deed"), that provided: [Mabel M. Snowden] granted and conveyed to Johnie Lorene Acker an .... "undivided one-fifth ( $1/5$ th) interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas." (CR 111-114; App. 8)

The royalty interest of Virginia Gertrude Akers Murphy was, by agreement, retained by Mabel M. Snowden as part of the Mabel M. Snowden estate. (CR 111-114; App. 8)

In or about 1980, a title search was conducted on the Snowden Ranch by a prospective oil and gas lessee. (CR 115-120; App. 9) In that process, it became desirable to express the re-conveyance to the Johnie Acker Heirs in terms of a non-participating royalty interest, ("NPRI"), rather than a mineral interest with reservations. (CR 115-120; App. 9) Consequently, Mabel M. Snowden and Johnie Lorene Acker agreed to correct and clarify the 1965 Mineral Deed to express the conveyance in terms of an NPRI. (CR 115-120; App. 9)

Therefore, on or about June 24, 1980, (but effective as of March 25, 1965), a Correction Warranty Deed was prepared and executed that stated, in pertinent part:

"in place of and as a Deed of Correction" to the March 25, 1965 deed "wherein by error or mistake, Grantors conveyed to Grantee an undivided one-fifth ( $1/5$ th) mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantor should have conveyed an undivided non-participating $1/5$ th of the whole and entire royalty interest, ...." (CR 115-120; App. 9)

On December 1, 2009, the Mabel Snowden Heirs executed an oil and gas lease with Swift Energy, (the "Swift Lease"), which provided a 25\% royalty to the mineral estate owners. (CR 121-159; App. 10) When Swift circulated a division order to the mineral owners, the Johnie Acker Heirs asserted that they were entitled to $1/5^{\text{th}}$ of $1/4(25\%)$ of the royalties under the Swift Lease rather than $1/5^{\text{th}}$ of $1/8^{\text{th}}$ as set forth in the 1948 Snowden NPMD. The claim caused Swift to suspend royalty payments and the institution of the present interpleader lawsuit.

In the lawsuit, the Johnie Acker Heirs, contend that the 1965 Mineral Deed, as corrected in 1980, entitles them to $1/5$ share of the $25\%$ royalties under the Swift Lease, not just the $1/5$ of $1/8$ th ( $12.5\%$ of the royalties) as provided in the original 1948 Mabel Snowden NPMD. (CR 111-114; App. 8) (CR 115-120; App. 9)

The Mabel Snowden Heirs, on the other hand, maintain that the 1948 Mabel Snowden NPMD and the succeeding conveyances, all of which were incorporated into the 1980 Correction Deed, express the clear intent to

convey only an undivided $1/5^{\text{th}}$ of $1/8^{\text{th}}$ royalty interest ( $1/5^{\text{th}}x12.5\%$ royalty) to each of the siblings and their heirs, including the Johnie Acker Heirs, while reserving to the surface owner, the Mabel Snowden Heirs, all royalty and incidents of the mineral estate above that amount. (CR 115-120; App. 9)

The Mabel Snowden Heirs' interpretation has clear support under the 1948 Murphy Estate Partition Deeds, the 1948 Snowden NPMD, and subsequent conveyance documents:

First, the 1980 Correction Warranty Deed, the 1965 Mineral Deed, and the 1953 Royalty Deed each refer back to the interests conveyed by the 1948 Snowden NPMD. (CR 115-120; App. 9) (CR 111-114; App. 8) (CR 107110; App. 7) (CR 095-100; App. 5) The 1948 Snowden NPMD restricts the conveyance to the four siblings to only a portion of the mineral interest, that being an undivided one-fifth ( $1/5$ th) of one-eighth ( $1/8$ th) royalty, reserving all other aspects of the mineral estate to the Mabel Snowden Heirs. (CR 095-100; App. 5)

Second, the 1980 Correction Warranty Deed clearly states in relevant part: "This Deed is made in place of and as a Deed of Correction of [the 1965 Mineral Deed] wherein by error or mistake, Grantors conveyed to Grantee an undivided $1/5$ th mineral interest in and to all of the oil,

gas and other minerals, when in truth and fact Grantors should have conveyed an undivided non-participating $1/5$ th of the whole and entire royalty interest, and this instrument ..., in all other respects confirming said former Deed ....." (CR 115-120; App. 9) (emphasis added)

Consequently, when reading the 1965 Mineral Deed together with the the 1980 Correction Warranty Deed results in the following construction:

Mabel M. Snowden conveys to Johnie Lorene Acker: "an undivided non-participating one-fifth ( $1/5$ ) of the whole and entire royalty interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas." (CR 111-114; App. 8) (emphasis added)

Third, it is irrefutable that the December 31, 1953 Deed from Johnie Lorene Acker to Mabel M. Snowden, conveyed "all of the interest previously conveyed by Mabel M. Snowden to Johnie Lorene Acker ... by Deed dated October 27, 1948 .... (i.e. the 1948 Snowden NPMD)" (CR 107-110; App. 7)

Fourth, the 1948 Snowden NPMD makes it absolutely clear that Johnie Lorene Acker and the other siblings received no interest in any "oil payment above the one-eighth ( $1/8^{\text{th}}$ ) royalty received by the Grantors in any future lease or leases." (CR 095-100; App. 5) None of the other heirs contested this fact and indeed the subject Final Judgment entered in this

case resolves any issues concerning same. Fifth, the Declaration and Agreement executed by the parties on December 9, 1953 makes it absolutely clear that the siblings and their heirs are to receive only an undivided $1/5^{\text{th}}$ of "a basic one-eighth (1/8) royalty interest" from the other siblings' mineral estate. (CR 101-106; App. 6)

Accordingly, the "whole and entire royalty interest" language contained in the 1980 deed must be construed with reference to the 1965 Mineral Deed and constitutes a reference to the entire base (or basic) $1/8^{\text{th}}$ royalty, as consistently set forth in the family's series of deeds and declarations in 1948, 1953 and 1965 describing the royalty held in common by the five Murphy siblings and their heirs and assigns. (CR 095-100; App. 5) (CR 101-106; App. 6) (CR 107-110; App. 7) (CR 111-114; App. 8) (CR 115120; App. 9)

This Court of Appeals previously interpreted the 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD, and the 1953 Declaration and Agreement

In 1988, a lawsuit was filed to determine the intent and terms of the shared family royalty interest between the Johnie Acker Heirs, Julia Authelia Akers (known at that time as Julia Authelia Winslow), and Mabel M. Snowden and some of her heirs. (CR 247-252; App. 12) In that dispute, the Johnie Acker Heirs had entered into several oil and gas leases on the

Acker ranch whereby overriding royalties were conveyed to Edwin Acker, Jr. (CR 247-252; App. 12)

The plaintiffs in the 1988 lawsuit (being Julia Authelia Winslow, Mabel M. Snowden and others) felt that they were entitled to share in the overriding royalties in addition to their respective undivided $1/5$ th of $1/8$ th royalty interests in the Acker ranch. (CR 247-252; App. 12) The Johnie Acker Heirs contended that the terms "base one-eighth (1/8) royalty interest" [in the four 1948 Murphy Estate Partition Deeds] and "above the one-eighth (1/8) royalty" [in the 1948 Snowden NPMD], and "basic oneeighth (1/8) royalty interest" in the 1953 Declaration and Agreement, limited the Winslow and Snowden interests to only $1/5$ each of a $1/8$ royalty. (CR 247-252; App. 12) They were correct.

The trial court reviewed the language in the four 1948 Murphy Estate Partition Deeds, including the 1948 Snowden NPMD to her four siblings and the 1953 Declaration and Agreement, and interpreted all of the reservations and restrictions contained therein (construing their different language together) as limiting the four other Murphy siblings' nonexecutive interests to only four-fifths (4/5ths) of a one-eighth (1/8th) royalty - that is, an undivided $1/5$ th of $1/8$ th royalty interest to each of the five children of J. E. Murphy. (CR 253-272; App. 13)

The judgment of the court was appealed. (CR 247-252; App. 12) This honorable court of appeals upheld the trial court's judgment. Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App--San Antonio 1989, writ denied). (CR 247-252; App. 12)

The instant Royalty Interest Dispute is Limited to Mabel Snowden Heirs and Johnie Acker Heirs

The other Defendants named in this case, to-wit, the Edna Mae Jones Heirs and the Julia Authelia Winslow Heirs, do not contest the division of royalties under the Swift Lease as interpreted by the Mabel Snowden Heirs and, in fact, many executed and delivered Division Orders to Swift Energy reflecting the division as set forth by the Mabel Snowden Heirs, ("Division Orders"). (CR 160-246; App. 11)

Notwithstanding the fact that there was no dispute among the Mabel Snowden Heirs, the Edna Mae Jones Heirs, and/or the Julia Authelia Winslow Heirs, Swift Energy wrongfully withheld and suspended Seven and One-Half ( $71/2\%$ ) percent of the royalties from the Swift Lease, when it should have only withheld and suspended Two and One-Half (2 1/2\%) Percent, i.e., the difference between what the the Mabel Snowden Heirs contend that the Johnie Acker Heirs are entitled to receive - an undivided 1/5th of 1/8th royalty interest (1/5th x 12.5\%), and what the Johnie Acker

Heirs contend that they are entitled to receive - an undivided $1/5$ th of $1/4$ th royalty interest ( $1/5$ th x 25\%) under the Swift Lease. This dispute amounts to $2-1/2\%$ royalty interest, not $7-1/2\%$ . However, after Summary Judgment was granted to the Johnie Acker Heirs, Swift Energy unilaterally released $5\%$ of the suspended royalties to the Mabel Snowden Heirs and final Judgment in this case disposes of all issues with Swift Energy. Hence, this appeal is limited to the dispute between the Johnie Acker Heirs and the Mabel Snowden Heirs over the suspended 2-1/2\% royalties and future royalties under the Swift Lease, and the construction of the subject deed conveyances.

STANDARDS OF REVIEW

When both sides move for summary judgment and the trial court grants one motion and denies the other, as at bar, summary judgment evidence presented by both sides is reviewed and this honorable court of appeals determines all questions presented. Comm'rs Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997). Furthermore, as in the instant case where the Mabel Snowden Heirs have pleaded the affirmative defense of Res Judicata and Collateral Estoppel, a movant who conclusively establishes all of the elements of an affirmative defense is entitled to summary judgment. Cathey v. Booth, 900 S.W.2d 339, 341 (Tex.1995).

Summary judgment is reviewed de novo. Provident Life &; Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex.2003). Evidence presented in the motion and response are analyzed in the light most favorable to the party against whom the summary judgment was rendered, crediting evidence favorable to that party if reasonable jurors could, and disregarding contrary evidence unless reasonable jurors could not. See City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex.2005); Johnson v. Brewer &; Pritchard, P.C., 73 S.W.3d 193, 208 (Tex.2002). The party moving for traditional summary judgment bears the burden of showing no genuine issue of material fact exists and it is entitled to judgment as a matter of law. See also Mann Frankfort Stein &; Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009) (citing Comm'rs Court of Titus County, 940 S.W.2d at 81); see also Provident Life &; Accident Ins. Co., 128 S.W.3d at 216; see also Nelson's Legal Investigating &; Consulting v. Myrick, No. 04-11-00158-CV, 2011 WL 6090082, at *2 (Tex.App.-San Antonio Dec. 7, 2011, no pet.) (mem. op.); Tex.R.Civ.P. 166a(c).

SUMMARY OF THE ARGUMENT

In the instant case, the Mabel Snowden Heirs have demonstrated that they are entitled to a declaration setting forth their rights under the

competent summary judgment evidence in support of their motion for summary judgment and, in particular, are entitled to a declaration that the Johnie Acker Heirs are only entitled to an undivided non-participating 1/5th of $1/8$ th royalty in and under the Swift Lease. The trial court had ample summary judgment proof to grant summary judgment in favor of the Mabel Snowden Heirs.

ISSUE NUMBER ONE (RESTATED)

Whether the motion for summary judgment filed by the Mabel Snowden Heirs, supported by competent summary judgment evidence, required the trial court to properly construe the referenced conveyances in the Correction Warranty Deed in order to validate the grantor's intent.

ARGUMENT AND AUTHORITIES

The Mabel Snowden Heirs Met Their Burden OfProof

In support of their motion for summary judgment, the Mabel Snowden Heirs attached the following competent summary judgment proof:

Exhibit 1: 1948 Murphy Estate Partition Deeds (Certified Copies): (i) Johnie L. Acker, Partition Deed, Vol. 43, Pg 218, McMullen County Deed Records, Filed: Oct. 27, 1948; (ii) Edna M. Jones, Partition Deed, Vol. 43, Pg 221, McMullen County Deed Records, Filed: Oct. 27, 1948; (iii) Emmett G. Murphy, Partition Deed, Vol. 44, Pg 30, McMullen

County Deed Records, Filed: Oct. 27, 1948; (iv) Julia A. Ackers, Warranty Deed, Vol. K-4, Pg 313, La Salle County Deed Records, Filed: Oct. 27, 1948.

Exhibit 2: Green Martin, General Warranty Deed, Vol. D-4, Pg. 53-55, La Salle County Deed Records, Filed: Oct. 1, 1945 (Certified Copy).

Exhibit 3: 1948 Snowden NPMD Non-Participating Mineral Deed, Vol K-4, Pg. 311, La Salle County Deed Records, Filed: Oct. 27, 1948 (Certified Copy).

Exhibit 4: 1953 Declaration &; Agreement Declaration &; Agreement, Vol X-4, Pg. 350, La Salle County Deed Records, Filed: Dec. 18, 1953 (Certified Copy).

Exhibit 5: 1953 Royalty Deed Royalty Deed, Vol X-4, Pg. 355, La Salle County Deed Records, Filed: Dec. 31, 1953 (Certified Copy).

Exhibit 6: 1965 Mineral Deed Mineral Deed; Vol 135, Pg. 135, La Salle County Deed Records, Filed: April 14, 1965 (Certified Copy).

Exhibit 7: 1980 Correction Deed Correction Warranty Deed, Vol 225, Pg. 246, La Salle County Deed Records, Filed: July 8, 1980 (Certified Copy). Exhibit 8: Swift Energy Lease Oil and Gas Lease dated December 1, 2009; Swift Energy Production Exhibit 9: Division Orders; Swift Energy Production Exhibit 10: Julia Authelia Winslow v. Edwin V. Acker, 781 S.W.2d 322 (Tex. App-San Antonio 1989, writ denied).

Exhibit 11: Cause No. 1013-C, Julia Winslow et al v. Edwin V. Acker et al, in the ${343}^{\text{rd}}$ Judicial District Court, McMullen County, Texas (Certified Copies of the following orders and pleadings):

Final Judgment Defendants' Motion for Summary Judgment Plaintiffs' Response to Defendants' Brief in Support of Defendants' Motion for Summary Judgment Defendants' First Amended Original Answer and Counterclaim Plaintiffs' First Amended Original Petition Exhibit 12: Affidavit of Richard J. Karam Affidavit of Michael L. McReynolds

1. Documents are Unambiguous

A contract or deed that can be given a definite or certain legal meaning is not ambiguous. See Stewart &; Title Guar. Co. v. Aiello, 941 S.W.2d 68, 74 (Tex.1997). The construction of an unambiguous deed is a question of law for the court. Luckel v. White, 819 S.W.2d 459, 461 (Tex.1991). The primary duty of a court when construing deeds that are unambiguous is to ascertain the intent of the parties from all of the language as contained in the four corners of the relevant the deeds. Id. Neither party contends that the deeds in this case are ambiguous.

The Mabel Snowden Heirs contend that when the Court construes the documents attached to their Motion, the intent of the parties is clear and certain that only an undivided $1/5$ th of $1/8$ th royalty interest was conveyed to the Johnie Acker Heirs. Indeed, the other Murphy siblings who are named defendants in the lawsuit recognize this truth by not contesting the issues and by the execution and delivery of Division Orders consistent

therewith. 2. Winslow vs. Acker: The declaration of rights in this prior appeal constitutes Res Judicata and/or Collateral Estoppel to the issues in the instant appeal.

Res Judicata precludes re-litigation of claims that have been finally adjudicated or that arise out of the same subject matter and could have been litigated in the prior action. Barr v. Resolution Trust Corp., 837 S.W.2d 627, 628 (Tex.1992). Res Judicata requires proof of the following elements: (1) a prior final judgment on the merits by a court of competent jurisdiction; (2) identity of parties or those in privity with them; and (3) a second action based on the same claims as were raised or could have been raised in the first action. Amstadt v. U.S. Brass Corp., 919 S.W.2d 644, 652 (Tex.1996).

Collateral Estoppel precludes re-litigation of any ultimate issue of fact actually litigated and essential to the judgment in a prior suit. Bonniwell $v$ . Beech Aircraft Corp., 663 S.W.2d 816, 818 (Tex.1984). The doctrine applies when the party against whom Collateral Estoppel is asserted had a full and fair opportunity to litigate the issue in the prior suit. Id.

In Winslow v. Acker, this honorable court of appeals reviewed the language in the 1948 Murphy Estate Partition Deeds, the 1948 Snowden

NPMD, and the 1953 Declaration and Agreement. Julia Authelia Winslow, 781 S.W.2d at 322-26. (CR 247-252; App. 12) In so doing, the court of appeals interpreted all of the reservations and restrictions contained therein (construing their differing language together) as limiting the four other Murphy siblings' non-executive interests, including the Johnie Acker Heirs, to only four-fifths (4/5ths) of a one-eighth (1/8th) royalty - that is, an undivided $1/5$ th of $1/8$ th royalty interest to each of the children of J. E. Murphy. Julia Authelia Winslow, 781 S.W.2d at 327. (CR 247-252; App. 12) Therefore, the trial court's declaration regarding the deeds in Winslow v. Acker constitutes Res Judicata and/or Collateral Estoppel to the limitations of the mineral grant from Mabel M. Snowden to her four siblings and their heirs, i.e., each would receive $1/5^{\text{th}}$ of $1/8^{\text{th}}$ of the royalties and no more. See Julia Authelia Winslow, 781 S.W.2d at 327-328. (CR 247-252; App. 12)

In their supplemental briefing in support of their motion for summary judgment, the Johnie Acker Heirs misinterpret the law when they cite the decision in Hausser for the proposition that the trial court is prohibited from examining prior conveyances when construing a deed. (CR 604-607; App. 20); Hausser v. Cuellar, 345 S.W.3d 462, 470-71 (Tex. App.-San Antonio 2011, pet. denied).

In Hausser, the deed under scrutiny did not reference a prior conveyance. The conveying language in Hausser provided as follows:

Grantors] have GRANTED, SOLD, CONVEYED, ASSIGNED AND DELIVERED, and by these presents do GRANT, SELL, ASSIGN, CONVEY AND DELIVER unto the said Grantees, Share and share alike, an undivided ( $1/2$ ) interest in and to all of the oil royalty, gas royalty, royalty in casinghead gas and gasoline, and royalty in other minerals in and under, and that may be produced and mined from the following described land situated in the County of Zapata and State of Texas, to wit: ..... Id. at 467 .

The majority of the court of appeals in Hausser emphasized that when a deed is unambiguous on its face, it would be improper to look back at prior conveyances for interpretation disapproving of the decision of Neel. Id. at 470 (citing Neel v. Killam Oil Co., Ltd., 88 S.W.3d 334, 340-41 (Tex.App.San Antonio 2002, pet. denied)). However as explained by Justices Marion and Hilbig in their dissent in Hausser, the majority misreads Neel because the examination of the prior deed in Neel was merely to confirm the conclusion, not to create it. Hausser, 345 S.W.3d at 472 (dissent).

The Mabel Snowden Heirs agree with both principles of law that an unambiguous deed should be read to harmonize and give effect to all its provisions by ascertaining the intent from the four corners of the document and that in certain cases, such as the appeal at bar, where a deed references the intent - not creates it - it is appropriate to look to prior referenced

conveyances.

At bar, the 1965 Mineral Deed from Mabel M. Snowden to Johnie Lorene Acker states:

Mabel M. Snowden Grants and convey to Johnie Lorene Acker an .... "undivided one-fifth ( $1/5$ th) interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas." (CR 111-114; App. 8) (emphasis added) The 1965 Mineral Deed, unlike the Hausser deed, specifically referenced a prior deed for a description of the mineral interest being conveyed. Hence, the prior deed must be referred to in order to ascertain the intent of the parties as to the interest being conveyed. See Harris v. Windsor, 156 Tex. 324, 325-327, 294 S.W.2d 798, 799-800 (Tex.1956).

In Harris, the issue was whether the "reservations" contained in the prior deed were carried forward. The granting clause of the deed stated: 'And being the same land described in Warranty deed from the The Federal Land Bank of Houston to W. C. Windsor, recorded in Vol. X-2, Page 119, Deed Records of Marion County, Texas, reference to which is made for all purposes.' Id.

The Texas Supreme Court in Harris relied on the "made for all purposes" to incorporate the reservations from the prior conveyance in

following language: It is obvious that the reference in the Federal Land Bank deed to the Liverman-Tems deed, 'for all legal purposes,' was not for the purpose of description, but for the purpose of disclosing that the deed was subject to all restrictions and reservations in that deed. As before stated, that deed reserved one-half in the minerals to Liverman. Id. at 156 Tex. at 327, 294 S.W.2d at 800.

In the appeal at bar, the reference "made for all purposes" is unnecessary because the reference in the Snowden deed to the prior deed was specific to "the mineral interest hereby conveyed." In other words, the reference to the prior deed was for the specific purpose of describing the interest being conveyed.

Reliance by the Johnie Acker Heirs on the decision in Myrad Properties, Inc. and the subsequent additions to the Texas Property Code, Section 5.030 which made the case "dead letter law," is also inapposite as the Mabel Snowden Heirs are not contending that the Correction Warranty Deed adds an additional mineral interest, but to the contrary, that the Correction Warranty Deed merely restated the prior grant in terms of a royalty interest rather than a mineral interest with reservations. Myrad Properties, Inc. v. La Salle Bank Nat. Ass'n, 300 S.W.3d 746, 749-750 (Tex.2009). (CR 604-607; App. 20) In this regard, the Correction Warranty Deed speaks for itself on the intent and purpose of the correction:

"This Deed is made in place of and as a Deed of Correction of [the 1965 Mineral Deed] wherein by error or mistake, Grantors conveyed to Grantee an undivided 1/5th mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantors should have conveyed an undivided nonparticipating 1/5th of the whole and entire royalty interest, and this instrument ..., in all other respects confirming said former Deed ..... (CR 115-120; App. 9) (emphasis added)

In fact the 1965 Mineral Deed did state that it conveyed an undivided $1/5^{\text{th}}$ mineral interest in all the oil, gas and other minerals; however, that broad conveyance was qualified by the succeeding language "being all of the interest conveyed by Johnie Loren Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas." The 1953 Royalty deed likewise references the interest as "being all of the interest conveyed by Mabel M. Snowden to Johnie Lorene Acker .... by Deed dated October 27, 1948 ...... " Hence, in each of the successive conveyances one must refer back to the 1948 Mabel Snowden NPMD to determine exactly what was and what is being conveyed, which unquestionably restricts the conveyance to $1/5$ of $1/8^{\text{th}}$ royalty. The Correction Warranty Deed states that "in truth and fact Grantors should have conveyed an undivided nor-participating $1/5^{\text{th}}$ of the whole and entire royalty ... confirming in all other respects the former Deed. It is clear that the Correction Warranty Deed merely expresses the

conveyance as a non-participating mineral interest (NPMI) rather than a mineral interest which reserves for grantor all other aspects of the mineral estate. (CR 115-120; App. 9)

The five essential elements of a severed mineral estate, are (1) the right to develop [the right of ingress and egress]; (2) the right to lease [the executive right]; (3) the right to receive bonus payments; (4) the right to receive delay rentals and (5) the right to receive royalty payments). See Altman v. Blake, 712 S.W.2d 117, 118 (Tex.1986); Julia Authelia Winslow, 781 S.W. 2d at 326. In fact, the interest conveyed remains the same, albeit expressed in different terminology.

The contention by the Johnie Acker Heirs is that the Correction Warranty Deed removed the reference to the prior 1965 Mineral Deed. This position is frivolous. Nowhere in the Correction Warranty Deed does it do so. (CR 115-120; App. 9) If that was the intent of the correction, the removal could have been easily included in the Correction Warranty Deed.

When the 1965 Mineral Deed and the 1980 Correction Warranty Deed are reconciled, it would read as follows:

Mabel M. Snowden ..... do(es) grant, bargain, sell and convey to the said Johnie Lorene Acker, an undivided non-participating one-fifth ( $1/5$ th) of the whole and entire royalty interest $$ in and to all of the oil, gas and other minerals described below, being all of the interest conveyed by Johnie Lorene Acker to Mabel M.

Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas." (CR 107-110; App. 7) (CR 115-120; App. 9) (emphasis added)

3. Attorneys Fees -

Declaratory Judgment

Pursuant to Chapter 37 of the Texas Civil Practice and Remedies Code, the Mabel Snowden Heirs seek a declaratory judgment from this court of appeals that would have the effect of settling the entitlements regarding the suspended royalties and settling future disputes under the documents granting such royalty rights. Tex. Civ. Prac. &; Rem. Code Ann. §37.004 (West 2007). Pursuant to Texas Civil Practice and Remedies Code $\S 37.009$ , the Mabel Snowden Heirs are entitled to costs of court and reasonable and necessary attorney's fees as set forth and stipulated by the parties in the Final Judgment of the trial court (fees to be awarded to Appellants in the event this court of appeals reverses and renders judgment in favor of the Mabel Snowden Heirs. Tex. Civ. Prac. &; Rem. Code Ann. $\S 37.009$ (WEST 2007). (CR 273-276).

CONCLUSION AND PRAYER

The Mabel Snowden Heirs pray that this honorable court of appeals

reverse the trial court's final judgment and as a result the underlying summary judgment order and grant judgment on appeal for the relief sought by the Mabel Snowden Heirs and any further relief to which they are justly entitled.

Respectfully Submitted, The LaW Office of Gilbert Vara, Jr. &; Law Offices of Richard J. Karam The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229-3228 Telephone: (210) 614-6400 Telecopy: (210) 614-6401 Emails: gilbert@varalaw.com, rjkaram@aol.com

By: /S/ Gilbert Vara, Jr. State Bar No.: 20496250 RICHARD J. KARAM State Bar No.: 11097500 Attorneys for Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden

CERTIFICATE OF SERVICE

I certify that on December 18, 2015, pursuant to Tex. R. App. P. 4 (e), 9.5(a), a true copy of Appellants' Brief was delivered to the following counsel of record by e-service:

LaW Office of Wilson Calhoun Attn.: Wilson Calhoun 719 S. Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 Telephone: (361) 882-3300 Telecopy: (361) 888-5404 Email: Wilson@wcalhoun.com &; Law Office of Audrey Mullert Vicknair Attn.: Audrey Mullert Vicknair 802 N. Carancahua, Suite 1350 Corpus Christi, Texas 78401-0022 Telephone: (361) 888-8413 Telecopy: (361) 887-6207 Email: avicknair@vicknairlaw.com Attorneys for Edwin V. Acker, Jr., et al By: /S/ GILBERT VARA, JR.

IN THE FOURTH COURT OF APPEALS AT SAN ANTONIO

PATRICIA JO KARDELL, MARTIN MURPHY SNOWDEN, MICKEY DARRELL SNOWDEN AND MARY DELILLA SNOWDEN, Appellants, v.
SWIFT ENERGY OPERATING, LLC,
Appellee.

APPELLANTS' APPENDIX

LIST OF DOCUMENTS

App. 1 Judgment ..... (CR 654-672) App. 2 Order Granting Acker Motion for Summary Judgment and Denying Snowden Motion for Summary Judgment.. (CR 640-649) App. 31948 Murphy Estate Partition Deeds ..... (CR 071-088) App. 4 Green Martin, General Warranty Deeds ..... (CR 089-094) App. 51948 Snowden NPMD ..... (CR 095-100) App. 61953 Declaration &; Agreement ..... (CR 101-106) App. 71953 Royalty Deed ..... (CR 107-110) App. 81965 Mineral Deed ..... (CR 111-114) App. 91980 Correction Deed ..... (CR 115-120) App. 10 Swift Energy Lease ..... (CR 121-159)

App. 11 Division Orders ..... (CR 160-246) App. 12 Julia Authelia Winslow v. Edwin V. Acker ..... (CR 247-252) App. 13 Cause No. 1013-C, Julia Winslow, et al. v. Edwin V. Acker ..... (CR 253-272) App. 14 Motion for Summary Judgment - filed by Mabel Snowden Heirs ..... (CR 056-276) App. 15 Response to Snowden Motion for Summary Judgment - filed by Johnie Acker Heirs ..... (CR 365-446) App. 16 Motion for Summary Judgment - filed by Johnie Acker Heirs ..... (CR 277-331) App. 17 Response to Snowden and Acker Motions for Summary Judgment - filed by Swift Energy ..... (CR 447-593) App. 18 Response to Acker Motion for Summary Judgment - filed by Mabel Snowden Heirs ..... (CR 594-599) App. 19 Corrected Response to Snowden and Acker Motions for Summary Judgment - filed by Swift Energy ..... (CR 600-603) App. 20 Supplemental Briefing - filed by Johnie Acker Heirs ..... (CR 604-607) App. 21 Response to Acker Supplemental Briefing - filed by Mabel Snowden Heirs ..... (CR 608-612) App. 22 Letter Ruling Granting Acker Defendants' Motion for Summary Judgment ..... (CR 613)

CAUSE NO. 12-06-001222-CVL

| SWIFT ENERGY OPERATING, LLC | § | | :--: | :--: | | | § | | vs. | § | | | § | | PATRICIA JO KARDELL, MARTIN | § | | MURPHY SNOWDEN, MICKEY | § | | DARRELL SNOWDEN, MARY | § | | DELILLA SNOWDEN, EDWIN V. | § | | ACKER, JR., STEPHEN ADOLPH | § | | ACKER, ELAINE ACKER GEORGE, | § | | LOLA MAE AKERS, PAMELA BOSS, | § | | DEAN EDWARD BURKETT, DEEANN | § | | BURKETT WILSON, CARON | § | | MARIE CORUM, BRIAN HUNTER, | § | | JENNY MAY WOODALL LAWRENCE, | § | | MALYDALYN JONES MITCHELL, | § | | BONNIE LEE SKIDMORE, LOURENE | § | | YVONNE WOODALL VANCE, | § | | SHARON L. WILLIAMS, DANIEL | § | | WILSON, FRANCIS MADISON | § | | WOODALL, JOHNNY LEE WOODALL, | § | | SHELLA ACKER REINKE, AND | § | | EDWIN SCOTT ACKER | § |

FINAL IUDGMENT

On this day came on to be considered the parties' motion for entry of final judgment in this matter. This Court finds it has jurisdiction over the subject matter and the parties to this proceeding.

Swift Energy Operating, LLC, Plaintiff-in-Interpleader (hereafter "Swift"), brought this interpleader action against Defendants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, Mary Delilla Snowden, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Lola Mae Akers, Pamela Boss, Dean Edward Burkett, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunter, Jenny May Woodall Lawrence, Malydalyn Jones

Mitchell, Bonnie Lee Skidmore, Lourene Yvonne Woodall Vance, Sharon L. Williams, Daniel Wilson, Francis Madison Woodall, Johnny Lee Woodall, Sheila Acker Reinke, and Edwin Scott Acker, being potential rival claimants to seven and one half percent (7.5\%) of the oil and gas royalties arising from that certain Oil and Gas Lease dated December 1, 2009, from Martin Murphy Snowden et al. as Lessor, to Swift ("disputed royalties"), as evidenced by Memorandum of Oil &; Gas Lease recorded in Volume 490, Page 98, of the Official Records of La Salle County, Texas. Covering the Subject Property as defined below (the "Swift Lease").

Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scott Acker (collectively "Acker Defendants"), upon being duly served with citation, filed an Answer and Cross-Claim against all other Defendants, claiming they are entitled to a royalty under the Swift Lease equal to one-fifth (1/5th) of the one-fourth (1/4th) of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith. Thereafter, the Acker Defendants non-suited their claims as against Defendants, Lola Mae Akers, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Pamela Boss, Deeann Burkett Wilson, Caron Marie Corum, Brian Hunter, Lourene Yvonne Woodall Vance, Sharon L. Williams, and Daniel Wilson.

Defendants, Martin Murphy Snowden, Mickey Darrell Snowden, Patricia J. Snowden Kardell, and Mary Delila Snowden (collectively "Snowden Defendants"), upon being duly served with citation, filed Answers and Cross-Claims against the Acker Defendants' under

the Uniform Declaratory Judgments Act, Chapter 37, Civil Practice and Remedies Code to determine the respective rights of said Defendants to the disputed royalties.

The Snowden Defendants also filed a Counterclaim against Swift for breach of contract for suspending and constructively tendering into the registry of the court five percent (5\%) out of the seven and one-half percent (7.5\%) disputed royalties, asserting that only two and one-half percent (2.5\%) of said royalties were actually in dispute.

Defendants, Jenny May Woodall Lawrence, Malydaln Jones Mitchell, Sharon L. Williams, Lola Mae Akers, Caron Marie Corum, Brian James Hunter, and Pamela Boss, acting pro se, filed Answers disavowing any interest in the disputed royalties and requesting a release and discharge from the interpleader.

Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, although each having been duly served with citation and a copy of Plaintiff's Original Petition in Interpleader did not appear and answer. The citations were served according to the law and returned to the clerk where they have remained on file for the time required by law.

On June 25, 2013, the court heard oral arguments on the following competing motions: (a) the motion for summary judgment of Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scott Acker and (b) the motion for summary judgment of Defendants Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden.

On April 3, 2014, this court granted the motion for partial summary judgment of the Acker Defendants and denied the motion for partial summary judgment of the Snowden Defendants against Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker. The partial summary judgement did not dispose of competing claims for attorney's fees under the Uniform Declaratory Judgment Act, Chapter 37, Civil Practice and Remedies Code (the "Code"), or resolve other claims and causes of action, including the Interpleader action of Swift and the claims of the Snowden Defendants against the Interpleader. The said remaining claims are hereafter disposed of herein.

Therefore, this final judgment disposes of all claims and causes of action in this matter. The Court hereby renders this final judgment as follows:

IT IS THEREFORE, ORDEDED, ADJUDGED AND DECREED that Defendants, Jenny May Woodall Lawrence, Malydaln Jones Mitchell, Sharon L. Williams, Lola Mae Akers, Caron Marie Corum, Brian James Hunter, and Pamela Boss, having filed Answers disavowing any interest in the disputed royalties and requesting a release and discharge from the interpleader are hereby divested of any and all interest in the disputed royalties and are hereby released and discharged from this Interpleader action.

IT IS FURTHER, ORDERED, ADJUDGED AND DECREED that Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, having admitted the material allegations asserted herein by failing to answer and/or to otherwise dispute the allegations concerning the ownership of the disputed royalties made the

subject of this suit, and having wholly made default as to asserting any rival claims to the said disputed royalty in this interpleader action, default judgments are hereby GRANTED to Swift against Defendants, Dean Edward Burkett, Francis Madison Woodall, Johnny Lee Woodall, Bonnie Lee Skidmore, Deeann Burkett Wilson, Lourene Yvonne Woodall Vance, and Daniel Wilson, and that said Defendants are hereby divested of any rights and claims to the disputed royalty interest and interpled funds and are further divested of and denied any right to contest the interpleader action brought by Swift.

IT IS FURTHER, ORDERED, ADJUDGED AND DECREED that a take nothing judgment is hereby entered on the Snowden Defendants counterclaims against Swift; that the interpleader action was properly brought and Swift is hereby discharged in full from this interpleader action; and Swift is awarded TWO THOUSAND FIVE HUNDERD DOLLARS $(\$2,500.00)$ in attorney fees from the Acker Defendants, to be paid jointly and severally by and amongst them.

IT IS HEREBY DECLARED that the five percent (5\%) royalty derived out of the seven and one-half percent ( $7.5\%$ ) disputed royalty was and is the property of the Snowden Defendants and that the heirs, successors and assigns of Edna Mae Jones and Julia Authelia Winslow are not entitled to any portion thereof, having rights, respectively, to only $1/5$ th of $1/8$ th (or $12.5\%$ ) of the royalties derived from the Subject Property as hereinafter more fully described, that is, $1/5^{\text{th}}$ of $1/8^{\text{th}}$ non-participating royalty interest to the Edna Mae Jones Heirs, successors and assigns, and $1/5^{\text{th}}$ of $1/8^{\text{th}}$ non-participating royalty interest to the Julia Authelia Winslow Heirs, successors and assigns, each such interest derived by through and under the Non-Participating Mineral Deed dated October

27, 1948 and filed of record in Book K-4, Page 311 of the Deed Records of LaSalle County, Texas.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED, that the said five percent (5%) royalty derived out of the seven and one-half percent (7.5%) disputed royalty has heretofore been paid to the Snowden Defendants by Swift and the court hereby confirms the payments of all such royalties paid to date by Swift; and releases Swift from any liability relating to said payments. The Snowden Defendants shall be entitled to any future five percent (5%) royalty payments derived out of the said seven and one-half percent (7.5%) disputed royalty from the Subject Property.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the motion for summary judgment of Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker is hereby GRANTED as hereinafter described and restated.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is rendered under Chapter 37 of the Code, that pursuant to the Correction Warranty Deed from Mabel Snowden and her husband Joe Snowden to Johnie Lorene Acker, dated June 24, 1980, and recorded at Volume 225, Page 248 of the Deed Records of La Salle County, Texas on July 8, 1980, a copy of which is attached to this judgment as Exhibit A, the heirs, successors, and assigns of Johnie Lorene Acker own an undivided nonparticipating one-fifth of the whole and entire royalty interest in and to all of the oil, gas, and other minerals in the following property:

FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas known as 6

Sur. 137 patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue Land Scrip No. 244, Pat. No. 240, Vol. No. 35;

SECOND TRACT: 640 acres of land, more or less, in La Salle County, Texas, known as Sur. No. 143, patented to I. W. Bean, assee. of J. H. Gibson by virtue of Scrip. No. 401, Pat. NO. 423, Vol. 30;

THIRD TRACT: 638.5 acres of land in La Salle County, Texas, and being all of Sur. 147, Cert. 68, patented to E. Ridgeway, assee. of J. V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 638.5 acres;

FOURTH TRACT: 193.1 acres out of Ori. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No. 344, described by metes and bounds as follows:

BEGINNING at the SW corner of Sec. No. 147, J. V. Massey and the N. W. Corner of Sec. No. 148, A. Salinas for the N. W. corner of this Sur;;

THENCE E. with Sec. line 1921 vrs. to a stk. at the intersection with the E. line of E. W. Alderman subdivision for the N. E. cor. of this Survey;

THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur.;

THENCE W. with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W. line of said Sec. No. 148, for the S. W. cor. of this sur.; THENCE N. with said line 567.4 vrs. to the place of beginning;

FIFTH TRACT: 640 acres of land in La Salle and Dimmit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School

File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52; The above-described five tracts of land contain 2,751.6 acres, more or less, are the same lands conveyed by Green Martin, et ux. to Mrs. Mabel M. Snowden by deed dated September 28, 1945, recorded in Vol. D-4, Pages 53- 55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of Dimmit County, Texas, to which Deed and records reference is here made for a full and complete description of said land. These five tracts of land are herein referred to as "the Subject Property."

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke] Bonner, and Edwin Scott Acker, and their heirs, successors, and assigns are entitled to a royalty under the Swift Lease equal to one-fifth ( $1/5$ th) of the one-fourth ( $1/4$ th) of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith and that therefore the Acker Defendants shall be entitled to two and one-half percent (2.5\%) royalty payments derived out of the said seven and one-half percent (7.5\%) disputed royalty from the Subject Property in addition to the two and one-half percent (2.5\%) undisputed royalty payments they have been receiving from Swift for a total five percent (5.0\%) royalty payment under the Swift Lease.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all future royalty payments under the Swift Lease that become owing after the date of this Judgment to which the Acker Defendants are entitled under the foregoing provisions of this Judgment, shall be hereafter paid directly to the Acker Defendants, one-half (1/2) to Edwin V. Acker,

Jr., one-fourth (1/4) to Stephen Adolph Acker, and one-fourth (1/4) to Elaine Acker George, after this judgment becomes final. However, if a timely appeal is filed and this judgment is superseded pursuant to the Texas Rules of Appellate Procedure, then the said two and onehalf percent (2.5\%) disputed future royalty shall be paid by Swift into the registry of this court.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, and Elaine Acker George, are entitled to the funds that have been constructively interpled into the registry of the court and held in suspense by Swift, which as of the date of judgment is the sum of $\$377,543\frac{18}{18}$ . The Interpled Funds shall be paid by Swift as follows: (i) one-half (1/2) to Edwin V. Acker, Jr., one-fourth (1/4) to Stephen Adolph Acker, and one-fourth (1/4) to Elaine Acker George if this judgment is not superseded on appeal in which case the payment shall be made within sixty days of the date of this judgment, or (ii) into the registry of the court if an appeal is filed and this judgment is superseded pursuant to the Texas Rules of Appellate Procedure and the Texas Civil Practice and Remedies Code, in which case the payment shall be made within sixty days of the date this judgment is superseded. Upon Swift's payment of the Interpled Funds as so ordered in this paragraph, Swift is fully and finally discharged as to all such payments.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that the motion for summary judgment of Defendants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden is hereby, in all things DENIED as it applies to

Defendants Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that judgment is rendered that the Acker Defendants recover from the Snowden Defendants, trial court attorney's fees in the amount of $15,000.00 under Section 37.009 of the Code.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that in the event of an appeal of the judgment in favor of the Acker Defendants against the Snowden Defendants under Chapter 37 of the Code, judgment is rendered that the Acker Defendants recover from the Snowden Defendants, (i) attorney's fees for representation through appeal to the court of appeals in the sum of $15,000.00,(ii)anadditionalsumof$ 5,000.00 for representation at the petition for review stage in the Supreme Court of Texas, if any, (iii) an additional $10,000.00forrepresentationatthemeritsbriefingstageintheSupremeCourtofTexas,ifany,and(iv)anadditional$ 5,000.00 for representation through oral argument and completion of proceedings in the Supreme Court of Texas, if any. Post-judgment interest will accrue at the rate of 5% on all of these sums in accordance with the Texas Finance Code and legal authority. Each award of appellate attorney's fees, and the interest thereon, is conditioned on the Acker Defendants prevailing in the last such appeal taken.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that if (and only if) the judgment in favor of the Acker Defendants against the Snowden Defendants is reversed by an appellate court and judgment is rendered by the appellate court in favor of the Snowden Defendants on their Motion for Summary Judgment against the Acker Defendants under Chapter 37 of the Code, then the Snowden Defendants shall recover from the Acker 10

Defendants, (i) trial attorney's fees in the amount of $\$15,000$ under Section 37.009 of the Code, (ii) attorney's fees for representation through appeal to the court of appeals in the sum of $\$15,000.00$ , if any, (iii) an additional sum of $\$5,000.00$ for representation at the petition for review stage in the Supreme Court of Texas, if any, (iv) an additional $\$10,000.00$ for representation at the merits briefing stage in the Supreme Court of Texas, if any, and (v) an additional $\$5,000.00$ for representation through oral argument and completion of proceedings in the Supreme Court of Texas, if any. Each award of attorney's fees, and the interest thereon, is conditioned on the Snowden Defendants prevailing in the last such appeal taken. Post-judgment interest will accrue on any such attorney's fees awarded at the rate of $5\%$ , beginning on the date the appellate court judgment reversing and rendering in favor of the Snowden Defendants becomes effective in accordance with the Texas Finance Code and legal authority.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims between the Acker Defendants and the Snowden Defendants not otherwise disposed of herein are DENIED.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims of Defendants against Swift not otherwise disposed of herein are DENIED and upon Swift's payment of the Interpled Funds as hereinbefore Ordered, Swift is fully and finally discharged and this Interpleader action is DISMISSED.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that all remaining claims of Swift against the Defendants not otherwise disposed of herein are DENIED.

IT IS FURTHER ORDERED, ADJUDGED AND DECREED that court costs shall be paid by the party incurring same.

This Judgment is final, disposes of all claims and all parties and is appealable. The Court further awards Swift and the Acker Defendants any and all writs necessary to enforce this judgment.

SIGNED this 21 day of $\frac{\text{d}}{2015.}\frac{\text{S}}{2015.}$

APPROVED AS TO FORM:

LAW OFFICE OF WILSON CALHOUN

719 S. Shoreline Blvd., Suite 404 Corpus Christi, Texas 78401 (361) 882-3300; (361) 888-5404 fax

Wilson Calhoun State Bar No. 03645500 Attorney for Edwin V. Acker, Jr., et al.

LAW OFFICE OF RICHARD J. KARAM

The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229 (210) 614-6400; (210) 614-6401 fax

Richard J. Karam State Bar No. 11097500 Attorney for Patricia Jo Kardell, et al.

LAW OFFICE OF FREDERICK R. ZLOTUCHA

222 Main Plaza East San Antonio, Texas 78205 (210) 227-9877; (210) 227-8316 fax

State Bar No. 22281500 Attorney for Swift Energy Operating, LLC

JENNY MAY WOODALL LAWRENCE

MALYDALN JONES MITCHELL

Pro Se Defendant

PAMELA BOSS Pro Se Defendant (Address)

Signature SHARON L. WILLIAMS Pro Se Defendant (Address)

Signature

JENNY MAY WOODALL LAWRENCE

Pro Se Defendant

(Address)

Signature

MALYDALN JONES MITCHELL

Pro Se Defendant (Address)

PAMELA BOSS

Pro Se Defendant HIS? Sernmet May Muructo G. 30066 (Address)

Signature

SHARON L. WILLIAMS Pro Se Defendant (Address)

Signature

JENNY MAY WOODALL LAWRINCE

Pro Se Defendant (Address)

Signaturn:

MALYDALN JONES MITCHELL

Pro Se Defendant (Address)

Signaturn:

PAMELA BOSS

Pro Se Defendant (Address)

Signaturn:

SHARON L. WILLIAMS

Pro S Defendant (Address)

Signature:

14

BRLAN JAMES HUNTER

Pro Se Defendant

LOLA MAE AKERS Pro Se Defendant

CARDN MARIE CORUM Pro Se Defendant

Signature

BRIAN JAMES HUNTER Pro Se Defendant

(Address)

Signature

LOLA MAE AKERS Pro Se Defendant

(Address)

Signature

CARON MARIE CORUM Pro Se Defendant 464-N-W-Pebble Beach Drive Earkehills, TX 78063

Cayoin Cojunt Signature

CAUSE NO. 12-06-001222-CVL

IN THE DISTRICT COURT

218th JUDICIAL DISTRICT

CAUSE NO. 12-06-001222-CVL

| SWIFTENERGY OPERATING, LLC | $\S$ | IN THE DISTRICT COURT | | :--: | :--: | :--: | | | § | | | vs. | § | 218th JUDICIAL DISTRICT | | | § | | | PATRICIA JO KARDELL, MARTIN | § | | | MURPHY SNOWDEN, MICKEY | § | | | DARRELL SNOWDEN, MARY | § | | | DELILLA SNOWDEN, EDWIN V. | § | | | ACKER, JR., STEPHEN ADOLPH | § | | | ACKER, ELAINE ACKER GEORGE, | § | | | LOLA MAE AKERS, PAMELA BOSS, | § | | | DEAN EDWARD BURKETT, DEEANN | § | | | BURKETT WILSON, CARON | § | | | MARIE CORUM, BRIAN HUNTER, | § | | | JENNY MAY WOODALL LAWRENCE | § | | | MALYDALYN JONES MITCHELL, | § | | | BONNIE LEE SKIDMORE, LOURENE | § | | | YVONNE WOODALL VANCE, | § | | | SHARON L. WILLIAMS, DANIEL | § | | | WILSON, FRANCIS MADISON | § | | | WOODALL, JOHNNY LEE WOODALL, | § | | | SHELLA ACKER REINKE, AND | § | | | EDWIN SCOTT ACKER | § | LA SALLE COUNTY, TEXAS |

ORDER REGARDING MOTIONS FOR SUMMARY JUDGEMENT

On June 25, 2013, the court heard oral arguments on the following motions: (a) the motion for summary judgment of Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scott Acker and (b) the motion for summary judgment of Defendants Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden. The parties and their counsel appeared before the court for the hearing on the motion. After considering the pleadings, motions, summary judgment evidence, and arguments of counsel, the court grants the Acker Motion for Summary Judgment as herein described and denies the Snowden Motion for Summary Judgment as it applies to Defendants,

Page 1 of 6 VOL. 101 PAGE 3331 VOL. 3*PAGE 119

Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker.

IT IS THEREFORE ORDERED that the motion for summary judgment of Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker is hereby GRANTED as herein described.

IT IS FURTHER ORDERED AND DECLARED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Civil Practice and Remedies Code ("the Code"), that pursuant to the Correction Warranty Deed from Mabel Snowden and her husband Joe Snowden to Johnie Lorene Acker, dated June 24, 1980, and recorded at Volume 225, Page 248 of the Deed Records of La Salle County, Texas on July 8, 1980, a copy of which is attached to this judgment as Exhibit A, the heirs, successors, and assigns of Johnie Lorene Acker own an undivided nonparticipating one-fifth of the whole and entire royalty interest in and to all of the oil, gas, and other minerals in the following property:

FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas known as Sur. 137 patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue Land Scrip No. 244, Pat. No. 240, Vol. No. 35;

SECOND TRACT: 640 acres of land, more or less, known as Sur. No. 143, Patented to I. W. Bean, assee. of J. H. Gibson by virtue of Scrip. No. 401, Pat. No. 423, Vol. 30;

THIRD TRACT: 638.5 acres of land in La Salle County, Texas, and being all of Sur. 147, Cert. 68, patented to E. Ridgeway, assee. of J. V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 638.5 acres;

FOURTH TRACT: 193.1 acres out of Ori. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No. 344, described by metes and bounds as follows:

BEGINNING at the SW corner of Sec. No. 147, J. V. Massey and the N. W. Comer of Sec. No. 148, A. Salinas for the N. W. corner of this sun.;

THENCE E. with Sec. line 1921 vrs. to a stk. at the intersection with the E. line of E. W. Alderman subdivision for the N. E. cor. of this Survey;

THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur.;

THENCE W. with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W. line of said Sec. No. 148, for the S. W. cor. of this sur.;

THENCE N. with said line 567.4 vrs. to the place of beginning;

FIFTH TRACT: 640 acres of land in La Salle and Dimmit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52;

The above-described five tracts of land contain 2,750 acres, more or less, and are the same land conveyed by Green Martin, et ux. to Mrs. Mabel M. Snowden by deed dated September 28, 1945, recorded in Vol. D-4, Pages 53- 55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of Dimmit County, Texas, to which Deed and records reference is here made for a full and complete description of said land. These five tracts of land are hereinafter referred to as "the Subject Property."

IT IS FURTHER ORDERED AND DECLARED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph

Acker, Elaine Acker George, Sheila Acker (Reinke) Bonner, and Edwin Scott Acker, and their heirs, successors, and assigns are entitled to a royalty under the Swift Lease described below equal to one-fifth ( $1/5$ th) of the one-fourth ( $1/4$ th) of the oil, gas, and other minerals produced and saved or sold from the Subject Property or lands pooled therewith;

IT IS FURTHER ORDERED AND DECLARED that a Declaratory Judgment is hereby rendered under Chapter 37 of the Code, that Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker are entitled, out of the funds that have been constructively interplead into the registry of the court, and/or held in suspense by Plaintiff-In-Interpleader Swift Energy Operating, LLC, to that portion of said funds calculated so that they will have received under the Swift Lease, when taken together with other disbursements of royalty under the Swift Lease, a total royalty calculated as one-fifth ( $1/5^{\text{th}}$ ) of the one-fourth ( $1/4^{\text{th}}$ ) royalty owed thereunder by Swift Energy Operating, LLC.

IT IS FURTHER ORDERED that the motion for summary judgment of Defendants, Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden is hereby, in all things, DENIED as it applies to Defendants, Edwin V. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shelia Acker (Reinke) Bonner, and Edwin Scott Acker.

The "Swift Lease" referenced above is that certain Oil and Gas Lease, dated December 1, 2009, from Martin Murphy Snowden et al, as Lessor, to Swift Energy Operating, LLC, as evidenced by Memorandum of Oil &; Gas Lease recorded in Volume 490, Page 98 of the Official Records of La Salle County, Texas, covering the Subject Property.

This is a partial summary judgment and disposes of no claims not specifically referred to herein.

SIGNED this 3 day of $Cprad,2014$ .

VOL. 101 PAGE 337 Page 5 of 6 VOL. 101 PAGE 123

APPROYED:

LAW OFFICE OF WILSON CALHOUN 719 S. Shoreline Blvd., Suite 404 Corpus (hristi, Texas 78401 (361)882-3300; (361)888-5404 fax

Email: Wilsoo@wcalhoun.ymm

APPROYED AS TO FORM ONLY:

LAW OFFICE OF RICHARD J. KARAM The Ariel House 8118 Datapoint Drive San Antonio, Texas 78229 210/614-6400; 210/614-6401 Fax Email: RJKaram@aol.com

Richard J. Karam State Bar No. 11097500 Attomey for Patricia Jo Kardell, Et Al

LAW OFFICE OF FREDERICK R. ZLOTUCHA

222 Main Plaza East San Antonio, Texas 78205 (210)227-4877; (210)227-8316 fax

Frederick R. Zlotypha State Bar No. $225\$1500$ Attomey for Swift Energy Operating. LLC

Exhibit A

To Order Regarding Motions for Summary Judgment

THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur.;

THENCE W. with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W. line of said Sec. No. 148, for the S. W. cor. of this sur.;

THENCE N. with said line 567.4 vrs. to the place of beginning;

FIFTH TRACT: 640 acres of land in La Salle and Dimsit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52; together with the rights of ingress and egrees at all times for the purpose of taking said minerals; the said five tracts of land above described containing 2,750 acres, more or less, and being the same land conveyed by Green Hartin, et ux. to Mrs. Mabel M. Snowden by deed dated September 28, 1945, recorded in Vol. D-4, Pages 53-55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of Dimsit County, Texas, to which Deed and records reference is here made for a full and complete description of said land.

TO HAVE AND TO HOLD the same unto the said JOHNIE LORENE ACKER as her separate and individual property, her heirs and assigns forever; and we do hereby bind ourselves, our heirs, executors and administrators to warrant and forever defend all and singular the said royalty interest unto the said JOHNIE LORENE ACKER, her heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under us, but not otherwise.

This Deed is made in place of and as a Deed of Correction of a Deed executed by Grantors herein to Grantee, dated March 25, 1965, and recorded in Vol. 135, Pages 135-136, Deed Records of La Salle County, Texas, wherein by error or mistake, Grantors conveyed to Grantee an undivided 1/5th mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantors should have conveyed an undivided non-participating of the whole and entire royalty interest, and this instrument is made by Grantors and accepted by Grantee in order to correct said mistake, and in all other respects

T E STATE OF TEXAS

TUULITY OF HYRMICER

Tant we, Edna we Jones, joined pro forma by uar uaband, Jimalu Jones, Uabal uullen Snowden, joined pro forma by uar uusband, J. S. Snowden, Julia nutuulla ukera, joined pro forma by uar iusband, T. F. ukera, and Emmett Granvel Harpily, four of the children of J. -. Harpily, deceased, for and in consideration of the aus of Ten "vallars ( $\$10.00$ ), and otuer good and valuable consideration, to us aash in uand said by Jofnio Iorene uoker, receipt of which is uaroby unknowledjed, uate TELISTED, S(10, 110) 'MILIGED, and by these proaents do UMLIT, TELL NIF TEXAS unto Johnis Iorene uoker, the only otuer could of J. 4. Harp y, Deceased, of Suarton County, Texas, as her oerarote individual property, t. 2 following described real astate, together aitu all improvements tuerson, situated in Reclallen County, Tersa, subject to the mineral reaervation and outer reaervation hereinafter mentioned, said ercresty being sure particularly des rited as

being the same land described as the third tract in a deed from J. E. Harpoy and wife, May Mor phy, to John W. Tomack, dated January 29, 1909, and filed for record on February 19, 1909, and recorded in Volume 2. Page 176 of the Dead Records of Rechallon County, Texas, to which deed and record reference is here made for a full and complete description of same.

The 20 years: Two hundred party (240) acres of land, the same being the Southwest 1/4 and the East 1/2 of the Northwest 1/4 of School 3e tion No. 124, made by virtue of Certificate No. 916, issued to Adams, Peaty, & Menton for 240 acres and being the same 240 acres out of said section No. 124 described in the deed from J. E. Harpoy and wife, May Harpoy to John W. Tomack, dated January 29, 1909, filed for record on February 19, 1909, and recorded in Volume 2. Page 176 of the Dead Records of Rechallon County, Texas, to which deed and record reference is here made; and it is also the same 240 acres out of John W. Bannon so. The described in a partition deed between J. E. Harpoy and T. J. Black dated October 24, 1907, filed for record January 25, 1916, and recorded in Volume 2, Page 504 of the Dead Records of Rechallon County, Texas, to which deed and record reference is here made for a full and complete description of same.

The two above described tracts of land are also described in a sheriff's deed from T. J. William to J. E. Harpoy, dated June 2, 1914, filed June 20, 1914, and recorded in Volume 2 on pages 552, 554 of the Dead Records of Rechallon County, Texas, and reference is here also made to this deed for a description of this land.

The 20 years: The 20 years: The surfaces astute at the above described premises, together with all and singular the rights, peraditements, and appointments transcripts in any wise belonging, unto the said Johnie Lorenz maker, as for concrete individual property, nor sohs and assigne forces; and as for her by kind ourselves, our pairs, executors, administrators, successors, and assigns, to warrant and forever defend all and singular the surface estate of the said premises unto the said Johnie Lorenz maker, her sohs, assigne, and successors, against over, reason a homosever lawfully claiming or to claim the same or any rent thereof, by, through, or under the but not otherwise.

Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or under the above described law are hereby conveyed or are intended or affected by this instrument except as hereinafter privided and the parties hereto, their respective sohs and assigns, as all continue to own and hold in common all of the oil, gas, and other minerals in, on, and under all of the above described law. In the same undivided proportion that said parties now own and hold said oil, gas, and other minerals together with the right of in-gas and gas at all times for the purposes of mining, drilling, and exploring said lands for oil, gas, and other minerals, and removing the same there from, and none of the royalties, reverts-nery interests, or other rights of said parties under existing oil, gas, and mineral losses shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the parties of the surface estate herein, Johnie Lorenz maker, shall have the exclusive right to execute, without the number of any of the creators herein, any oil, gas, or mineral lease that a desires on any such terms as a newly desired, and receive, as her separate property, such bonuses, oil regiments, and rentals as may be paid under said oil, gas, and mineral losses.

thousands or the friller of fox ? hammonds' wall, for water used off of bastion 460 above described shall go on-melf (1/2) to Edna Moe Jonas, as her separate property, and one-half (1/2) to Johnie Lorene Acker, as her separ te property, and also one other water turt is sold off of wells number one and number two on Beetlin 460 shall $p=1/2$ to Edna Moe Jonas, as uer separate property, and the other $1/2$ to Joonie Lorene Acker, as ier separate property, and t.is s.ell. continue so long as either Edna Moe Jonas or Joanie Lorene Acker live unless the said Joonie Lorene Acker decides to sell said land on union said wells are located and has a buyer and one has entered into a contract to sell some, in w:ion event the said Edna Moe Jonas shall eproint an appraiser and the said Joinie Lorene Acker s all erpoint an appraiser, and the two appraisers eprointed sall in turn eproint a third appraiser, and they sall appraise the value of the interest of Edna Moe Jonas in said water rights re:oin reserved and granted to her, and the said Joanie Lorene Acker shall pay said Edna Moe Jonas for the appraised value, and the finding of the appraisers shall be final and there shall be no appeal therefrom, and when some is paid to the said Edna Moe Jonas ane shall quit-eluim all her right, title, and interest in and to said water rights herein reserved to iier.

It is agreed and understood that on the deatn of both Edna Moe Jonas and Joanie Lorene Acker the water right herein reserved sall terminate, tut until the death of both of them the benefits herein set forth shall be tinnin, in their reirs, executors, administrators, and assigns.

It is further understood and agreed, and this to the contr:ry notwithstanding, that Johnie Lorene Acker is to have the use of water out of said wells and the right to sell water from said wells, but when ane sells the said water ane sall pay to Edna Moe Jonas, as ier separate property, one-half (1/2) of whatever one gets for some.

Executed this the 21st dey of 29tober, 1942.

Edna Moe Jonas Jinnie Jonas 21. G. Snowden

Julis cuthella akers 2. E. Akers

Daneetl Granvel Murpig

T:E STATE 00 TEXAS TOUJPY OF TOTAL Before me, the undersigned authority, a Rotary Public in and for Davel County, Texas, on this day personally appeared Jinnie Jones and Edna Moe Jonas, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they even executed the same for the purposes and consideration therein expressed, and the said Edna Moe Jonas, wife of the said Jinnie Jones, having been examined by me privily and apart from iier nustand, and having the same fully explained to her, ane, the said Edna Moe Jonas, acknowledged such instrument to be her act and dead, and ane declared that she had will incly at need the same for the rurnoses and consideration therein expressed, and that ane did

to me to be tre persons whose names are surorifed to the foregoing instrument, and acknowledged to me that they each oxerated the same for the purposes and consideration therein oxpressed, and the said abbel sullen 3nowden, wife of the said J. G. Snowden, having been oxemined by me privily and apart from her husband, and he ing the same fully explained to her, s. e, the said abbel Julle Snowden, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

Given under my nend and seal of office this the 27 de of October, A. D. 1948. (SE.I.)

Exa. A. H. Knaga
County Clerk. in and for LaSalle County, Texas.

THE 3T. TE. 1H TEXAS "COUT" 1H LaSALLE Before me, the undersigned cutionrity, acciriontors 20thike in and for LaSalle County, Texas, on this day personally appeared T. F. Akers. and Julia nutnalle akers, his wife, both known to me to be the persons whose names are surorified to the oregating instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Julia nuthella akers, wife of the said T. F. Akers, having been oxemined by me privily and apart from our husband, and having the same fully explained to her, she, the said Julia nutn alle akers, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for $t$ a purposes and consideration therein expressed, and that she did not wish to retract it.

Given under my hand and so al of office t. la t. 2 "dey of October, A. D. 1948. (SEAL) Exa. A. H. Knaga County Clerk. in and for LaSalle County, Texas.

THE 3T. TE. 1H TEXAS 1204T. 1H LaSALLE Before me, the undersigned cutinority, acciriontors 20thike in and for LaSalla County, Texas, on this day personally appeared Sonnett Grunvel Kumpy, known to me to be the person whose name is su certified to the foregoing instrument, and acknowledged to me that he excoated the same for the purposes and consideration therein expressed.

Given under my hand and seal of office t.la the 27 dey of October, ... D. 1948. (SE. L) Exa. A. U. Knaga County Clerk. in and for LaSalle County, Texas. TITED FOR FERORD TITS BY PA. 1H 12T. A. D. 1948 AT 4 11204T F.M. AND DUEY FEDERED 12132 "N. 14 12N. A. D. 1948 AT 5:3C 1214 T F.M. WYAN BADUHN-DESEN DEPUYY. EXE 1. 1948, LEEN 1204T F. 1208T. MANUJAN JUNU, TEXAS.

CERTIFICATE THE STATE OF TEXAS X COUNTY OF McMULLEN X I, Dorairene Garza, COUNTY CLERK IN AND FOR SAID COUNTY AND STATE DO HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE INSTRUMEYLHEREWITH SET OU? AS APPEARS OF RECORD IN VOL. 5 , PAGE 31 K , BECO

| Abstract No. | Survey No. | Certificate No. | Patent No. | Original Grantage | Notes | |------|------|------|------|------|------| | 54 | 171 | 732 | 295 | A B A M | 640 | | 57 | 125 | 994 | 294 | A B A M | 640 |

Being the same surveys No. 121 and No. 123 described in a portion dead between J. S. Murphy and L. T. Black, dated October, 26, 1907, filled January 25, 1908, and recorded in Volume 11, page 804 of the Dead Records of Zealukian Jounts, Texas, to which dead and record reference is were made for a full and complete description of the land herein conveyed.

To have a 30 to 100 the surface estate of the above described premises, together with all and singular the rights, hereditaments, and appartenances to a private belong to, unto the said Edna Mae Jones, as her separate individual property, her heirs and assigns for a, and we do hereby bind ourselves, our heirs, executors, administrators, successors, and assigns, to warrant and forever defend all and singular the surface estate of the said premises unto the said Edna Mae Jones, her heirs, assigns, and successors, against every person whomeover lawfully claiming or to claim the same or any part thereof, by, through, or under us, but not otherwise.

Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or under the above described lands are hereby conveyed or are intended or affected by this instrument except as hereafter provided, and the parties hereto, their respective heirs and assigns, shall continue to own and hold in common all of the oil, gas, and other minerals in, on, and under all of the above described lands in the same undivided proportion that said parties now own and hold said oil, gas, and other minerals together with the right of ingress and egress at all times for the purpose of mining, drilling, and exploring said lands for oil, gas, and other minerals, and removing the same therefrom, and none of the activities, reversionary interests, or other rights of said parties under existing oil, gas, and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate herein, Edna Mae Jones, shall have the exclusive right to execute, without the joinder of any of the grantors herein, any oil, gas, or mineral leases that she desires on any such terms as she may desire, and receive, as her separate property, such bonuses, oil payments, and rentals as may be paid under said oil, gas and mineral leases so executed by her, except that she shall reserve in each oil, gas and mineral lease so executed by her, a base one-eighth (1/8) royalty interest for the benefit of herself and the other four children of J.E. Murphy, deceased, grantors herein, in the same proportion they now own same.

The rights and privileges herein granted to the grantee herein shall not only be for her benefit, but shall be for the benefit of her heirs, executors, administrators, and assigns, and shall be a covenant running with the surface of the land above described.

EXECUTED this the 21st day of October, 1948.

ment, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Johnle Lorene Acker, wife of the said E.V. Acker, having been examined by me prlvity and apart from her husband, and having the same fully explained to her, she, the said Johnle Lorene Acker, acknowledged such instrument to be her act and deed and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 23rd day of October, A.D. 1948. (SEAL) Geo. W. Ward, Notary Public in and for Duval County, Texas. THE STATE OF TEXAS COUNTY OF La Sallo $$ BEFORE ME, the undersigned authority, sseaburywittickx in and for La Salle County, Texas, on this day personally appeared J.G. Snowden and Mabel Mullen Snowden his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Mabel Mullen Snowden, wife of the said J.G. Snowden, having been examined by me prlvity and apart from her husband, and having the same fully explained to her, she, the said Mabel Mullen Snowden, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract &;t.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October, A.D. 1948. (SEAL) Mrs. A.U. Knaggs, County Clerk in and for La Salle County, Texas. THE STATE OF TEXAS COUNTY OF LA SALLE $$ BEFORE ME, the undersigned authority, sseaburywittkx in and for La Salle County, Texas, on this day personally appeared W.F. Akers and Julia Authe11a Akers, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Julia Authe11a Akers, wife of the said W.F. Akers having been examined by me prlvity and apart from her husband, and having the same fully explained to her, she, the said Julia Authe11a Akers, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October A.D. 1948. (SEAL) Mrs A.U. Knaggs, County Clerk in and for La Salle County, Texas. THE STATE OF TEXAS COUNTY OF Duval $$ BEFORE ME, the undersigned authority, a Notary Public in and for Duval County, Texas, on this day personally appeared Emmett Granvel Murphy, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 23rd day of October, A.D. 1948. (SEAL) Geo. W. Ward, Notary Public in and for Duval County, Texas. FILED FOR RECORD THIS 27th DAY OF OCTOBER, A.D. 1948, AT 4:00 C!CLOCK P.M. AND DULY RECORDED THIS 28th DAY OF OCTOBER A.D. 1948, AT 9:00 C!CLOCK A.M.

CERTIFICATE THE STATE OF TEXAS X COUNTY OF McMULEN X I, Dorairene Garza, COUNTY CLERK IN AND FOR SAID COUNTY AND STATE DO HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE INSTRUMENT-HEREWITH SET_QUJ AS APPEARS OF RECORD IN VOL. 45 PAGE 22 , EED RECORDS

That we, Edna Mae Jones, joined pro forma by her husband, Jimmie Jones, Johnie Lorene Acker, joined pro forma by her husband, E.V. Acker, Mabel Mullen Snowden, joined pro forma by her husband, J.G. Snowden, and Julia Autheila Akers, joined pro forma by her husband W.F. Akers, four of the children of J.E. Murphy, deceased, for and in consideration of the sum of Ten Dollars ( $\$10.00$ ), and other good and valuable consideration, to us cash in hand paid by Emmett Grenvel Murphy, receipt o: which is hereby acknowledge, have GRANTED, SOLD and CONVEYED, and by these presents do GRANT, SELL and CONVEY, unto Emmett Grenvel Murphy, the only other child of J.E. Murphy, deceased, of Duval County, Texas, as his separate individual property, the following described real estate, together with all improvements thereon, situated in Duval and McMullen Counties, Texas, subject to the mineral reservation hereinafter mentioned, said property being more particularly described as follows, to-wit:

FIRST TRACT: Section 120, Certificate 1683, original Grantee, B.S. &; F. purchased from the State of Texas by A.L. Dilworth, fully described in Ledger 68, page 304, File 83539 of the General Land Office of Texas, said property containing 840 acres, more or less, and being situated in Duval County, Texas.

SECOND TRACT: The East one-half of Section 112, Certificate 1679, Original Grantee, B.S. &; F., purchased from the State of Texas by A.L. Dilworth, fully described in Ledger 61, page 41, file 75731, of the General Land Office of Texas, containing 320 acres of land, more or less, and being situated in Duval and McMullen Counties, Texas.

THIRD TRACT: The West one-half of Section 112, Certificate 1679, Original Grantee, B.S. &; F., purchased from the State of Texas by A.L. Dilworth, fully described in Ledger 61, page 42, File 75732 of the General Land Office of Texas, containing 320 acres of land, more or less, and situated in Duval and McMullen Counties, Texas.

FOURTH TRACT: The North one-half of Section 222, certificate 1/93 original Grantee, J. Poltevent, purchased from the State of Texas by A.L. Dilworth, fully described in Ledger 64, page 375, File 79957 of the General Land Office of Texas, containing 353 acres of land, more or less, and situated in Duval County, Texas.

The above four tracts are the same land conveyed by A.L. Dilworth, et ux, to J.E. Murphy by deed dated August 2, 1928, recorded in Volume 22, page 82, of the Deed Records of McMullen County, Texas, to which record reference is here made for a full and complete description of same.

FIFTH TRACT: The North one-half (N.1/2) of the Southwest one-fourth (SW $\frac{1}{2}$ ) and the South one-half ( $S\frac{1}{2}$ ) of the Northwest one-fourth ( $\mathrm{n}\mathrm{w}\frac{1}{2}$ ) of Section 104, Abstract 1535, Certificate 1865, original Grantee, B.S. &; F. consisting of 160 acres; the West threefourths (W.3/4) of Section 110, Abstract No. 1603, Certificate 1688, Original Grantee, B.S. &; F., consisting of 547 acres; and the East one-half ( $E\frac{1}{2}$ ) of the Northeast one-fourth (NE $\frac{1}{2}$ ) and the East one-half ( $E\frac{1}{2}$ ) of the Southwest one-fourth ( $\mathrm{S}\mathrm{E}\frac{1}{2}$ ) of Section 110, Abstract 1536, Certificate 1688, original grantee, B.S. &; F., consisting of 160 acres, aggregating altogether 867 acres of land, situated in Duval and McMullen Counties, Texas, being the same land described in a deed from B.J. Martin, et ux, to J.E. Murphy, dated June 13, 1934,

of the said premises unto the said Emmett Grenval Murphy, his heirs, assigns and successors, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by through or under us, but not otherwise.

Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals, in, on or under the above described lands are hereby conveyed or are intended as affected by this instrument except as hereinafter provided, and the parties hereto, their respective heirs and assigns, shall continue to own and hold in common all of the oil, gas and other minerals, in, on and under all of the above described lands in the same undivided proportion that said parties now own and hold said oil, gas and other minerals together with the right of ingress and egress at all times for the purpose of mining, drilling, and exploring said lands for oil, gas and other minerals, and removing the same therefrom, and none of the royalties, reverstonary interests, or other rights of said parties under existing oil, gas, and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate herein, Emmett Grenval Murphy, shall have the exclusive right to execute, without the founder of any of the granotors herein, any oil, gas or mineral lease that he desires on any such terms as he may desire, and receive, as his separate property, such bonuses, oil payments, and rentals as may be paid under said oil, gas and mineral leases so executed by him, except that he shall reserve an each oil, gas and mineral lease so executed by him, a base one-eighth (1/8) royalty interest for the benefit of himself and the other four children of J.E. Murphy, deceased, granotors herein, in the same proportion they now own same.

The rights and privileges herein granted to the grantee herein shall not only be for his benefit, but shall be for the benefit of his heirs, executors, administrators, and assigns, and shall be a covenant running with the surface of the land above described.

EXECUTED this the 21st day of October, 1948.

Edna Mae Jones Jimmie Jones Jonnie Lorene Acker E. V. Acker

Eabel Mullen Snowden J.G. Snowden

Julia Authelia Akers W. F. Akers

THE STATE OF TEXAS

COUNTY OF Doval | BEFORE ME, the undersigned authority, a Notary Public in and for Doval County, Texas, on this day personally appeared Jimmie Jones and Edna Mae Jones, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and considers tion therein expressed, and the said Edna Mae Jones, wife of the said Jimmie Jones, having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Edna Mae Jones, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN under my hand and seal of office this the 23rd day of October, A.D. 1948.

therein expressed, and the said Johnie Lorene Acker, wife of the said E.V. Acker, having been examined by me privily and apart from her husband, and having the same fully explained to her, she she, the said Johnie Lorene Acker, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, add that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 23rd day of October, A.D. 1948. (SEAL) Geo. W. Ward, Notary Public in and for Doval County, Texas. THE STATE OF TEXAS COUNTY OF LA SALLE I BEFORE ME, the undersigned authority, and for La Salle County, Texas, on this day personally appeared J.G. Snowden and Mabel Mullen Snowden his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Mabel Mullen Snowden, wife of the said J.G. Snowden, having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Mabel Mullen Snowden, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October, A.D. 1948. (SEAL) Mrs A.U. Knaggs, County Clerk in and for La Salle County, Texas. THE STATE OF TEXAS COUNTY OF LA SALLE I BEFORE ME, the undersigned authority, and for La Salle County, Texas, on this day personally appeared W.F. Akers and Julia Authelia Akers, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Julia Authelia Akers, wife of the said W.F. Akers, having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Julia Authelia Akers, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October, A.D. 1948. (SEAL) Mrs A.U. Knaggs, County Clerk in and for La Salle County, Texas. FILID FOR RECORD THIS 27th DAY OF OCTOBER A.D. 1948, AT 4:00 O'CLOCK P.M. AND DULY RECORDED THIS 27th DAY OF OCTOBER A.D. 1948, AT 5:00 O'CLOCK P.M. By Rex C. Quinn, County Clerk McMullen County, Texas

FILS NO. 4981

CERTIFICATE THE STATE OF TEXAS X COUNTY OF McMULLEN X I, Dorairene Garza, COUNTY CLERK IN AND FOR SAID COUNTY AND STATE DO HEREBY CERTIFY THAT THE FOREGOING IS A TRUE AND CORRECT COPY OF THE INSTRUMENTHEREWITH SET. QUI AS APPEARS OF RECORD IN VOL. PAGE 1 , (FPI) RECORDS OF McMULLEN COWNTY, TEXAS.

SIAIE OF IEAN?

COURT'T U: L:BALL

MARLY, III... BU, EU, JUHY/DANIQ DAN LaSalla CQQ, Texas. Do he'sok centify that this is a true arx correct copy as in's same appears or record in nyy office. 'Witness m nand and Seal of Office

Hil in the sate and cormation, and of andes prectote do andes jubere and of the sate Julla Autholia Akers, the only other thild of J. R. Murphy, deceased, of. La Salla Counts Texas, as her separate Individual property, the surface estate of the following described: estate, together with all improvements thereon, situated in La Salla County, Texas, to-wit

Hine hundred (900) acres of land in La Salla County, Texas, on which Julia Autholia Akers andther husband, W. F. Akers, now live, being fully described as ten (10) separate tracts of land in a deed from A. G. Salmon, et ux, to J. R. Murphy, dated July 24, 1946, and recorded at Volume E-4, on pages 540 et seq., of the Dead Records of La Salla County, Texas, to which 600 and record reference is here made for a full and complete description of same.

TO HAVE AND TO HOLD, the surface estate of the above described premises, together with 6 and singular the rights, hereditaments and appurtenances thereunto in anyw1se belonging, unto the said Julia Autholia Akers, as her separate individual property, her heirs and assigns for ever. And we do hereby bind ourselves, our heirs, executors, administrators, successors and assigns, to warrant and forever defend all and singular the surface estate of the said prems unto the said Julia Autholia Akers, her heirs, assigns, and successors, against every person whomeoever lawfully claiming or to claim the same or any part thereof, by, through, or under but not otherwise.

Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals ih, on, or under the above described is are hereby conveyed ar are intended or affected by this instrument except as hereinafter provi and the parties hereto, their respective heirs and assigns, shall continue to own and hold ing common all of the oil, gas, and other minerals in, on, and under all of the above described is in the same undivided proportion that said parties now own and hold said oil, gas and other min erals together with the right of ingreas and egress at all times for the purpose of mining, dying, and exploring said lands for oil, gas, and other minerals, and removing the same therefore and none of the royalties, reverstionary interests, or other rights of said parties under exista ing oil, gas, and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate herein, Julia Autholia Akers, shall have the exclusive right to execute, without the joinder of any of the grantors herein, any oil, gas, or mineral lease that she desires on any such terms as she may desire, and receive, as her separate property, such honuses, oil payments, and rentals as may be paid under said oil, gas, and mineral leases so executed by her, except that she shall resefive in each oil, gas, and mineral lease so executed by her, a base one-eighth (1/8) royalty interest for the benefit of herself and the other four children of J. R. Murphy, Deceased, grantors herein, in the same proportion they now own same.

The rights and privileges herein granted to the grantee herein shall not only be for her benefit, but shall be for the benefit of her heirs, executors, administrators, and assigns, and shall be a covenant running with the surface of the land described.

EXECUTED this the 21st day of October, 1948.

| | Edna Mas Jones | | :--: | :--: | | Mabel Mullen Snowden | Edna Mas Jones | | Wabel Mullen Snowden | Jimmie Jones | | J. G. Snowden | Jimmie Jones | | J. G. Snowden | Johnie Lorene Acker |

SIAIE U: IENA COURT: C: L: SALE

MARU: III... EU, EU, GUY, GUNY/DENIC DENT, LaSalle Count., Taxas, Do hersor certify trial ifis is a true ars correct copy as Jis same apprears or record in nyy office. 'Vitness my hand and Seal of Office Tireteus Lentileu, ur. S) $\mathrm{K}\mathrm{O}13$

and she declared that she had willingly signed the same for the purposes and consideratherein expressed, and that she did not wish to retract it.

Given under my hand and seal of office, this the 28rd day of October, 1948.

Geo. W. Ward GEO. W. WARD Notary Public in and for Duval County, Texas.

MAZATE OF TEXAS:

BY OF DUVAL:

MEPORENNE, the undersigned authority, on this day personally appeared E. V. Acker and

Le Lorene Acker, his wife, both known to me to be the persons whose names are subscribed to

foregoing instrument, and acknowledged to me that they each executed the same for the purpose

and consideration therein expressed, and the said Johnie Lorene Acker., wife of the said

Acker, having been examined by me privily and apart from her husband, and having the same

by explained to her, she, the said Johnie Lorene Acker, acknowledged such instrument to be

act and deed, and she declared that she had willingly signed the same for the purposes and

dideration therein expressed, and that she did not wish to retract it.

Given under my hand and seal of office, this the 2rd day of October, 1948.

Geo. W. Ward GEO. W. WARD Smal. Notary Public in and for Duval County, Texas.

STATE OF TEXAS:

BY OF LA SALLN:

BEFORE ME, the undersigned authority, on this day personally appeared J. G. Snowden, and

Mullan Snowden, his wife, both known to me to be the persons whose names are subscribed

the foregoing instrument, and acknowledged to me that they each executed the same for the purpose

and consideration therein expressed, and the said Mabel Mullen Snowden, wife of the

E. G. Snowden, having been examined by me privily and apart from her husband, and having

same fully explained to her, she, the said Mabel Mullen Snowden, acknowledged such instrument

to be her act and deed, and she declared that she had willingly signed the same for the purpose

and consideration therein expressed, and that she did not wish to retract it.

Given under my hand and seal of office, this the 27 day of October, 1948.

Mrs. A. U. Knaggs, MRS. A.UU. KNAOGS Smal. Notary Public in and for La Salle County, Texas.

STATE OF TEXAS:

BY OF DUVAL:

MEPORE ME, the undersigned authority, on this day personally appeared Annett Granval Murphy,

In to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged

to me that he executed the same for the purposes and consideration therein expressed.

Given under my hand and seal of office, this the 28rd day of October, 1948.

Geo. W. Ward GEO. W. WARD Notary Public in and for Duval County, Texas.

Dd; October 27, 1948 at 2:00 p'clock P. M.

Dd; October 28, 1948 at 3:30 p'clock P. M.

Dd; October 27, 1948 at 2:00 p'clock P. M.

County Clerk, La Salle County, Texas.

DIE U: TEUNE COURT: C: L'SAL

MASSIHIL...ZU, EURO JOUNY/DESDES JEAN LaSaite Count., TaXas. Do JENSON certify trial in. 3 a line are corred copy as the same appears 2 record in ny office. Witness $m_1$ nand and Seal of Office THERPA L

Green Martin, et ux To: General Warranty Deed Mrs. Mabel M. Snowden STATE CF TEXAS: COUNTY CF LA SAILE: KNOW ALL MEN BY THESE PRESENTS: That we, Green Martin and wife, Julia Tully Martin, of Frlo County, Texas, in consideration of the sum of Ten and no/100 Dollars ( $\$10.00$ ) paid by the grentse hereinafter named, the receipt of which is hereby acknowledged, and for the further consideration that said grantee, Mrs. Mabe: K. Snowden and husband, J. G. Snowden, have executed their promissory note of even date herewith for the sum of thirty-five Thousand and no/100 DOLLARS ( $\$35,000.00$ ), payable to the order of Green Martin whose post office address is Fearsall, Texas, bearing interest at the rate of 4 per cent per annum from date until maturity, past due principal and interest to bear $10\%$ interest per annum from maturity until paid, principal and interest being payable in annual installments of Two Thousand and no/100 Dollars ( $\$2,000.00$ ), or more, each, plus interest, payable on or before the 1st day of October, 1946 and continuing until the whgls of said fom, with interest, has been duly paid. It is agreed and understood that if the Grantee pays more than $\$2,000.00$ , on the principal during any one year said note shall not be considered in default until the amount paid on said note is less than $\$2,000.00$ per year plus interest, and grantee is given the right to pay all or any part of said note at any time, said note containing the usual provision for $10\%$ attomey's fees, and being secured by a VENDON'S LIEN herein and hereby expresaly retained in favor of the holder thereof on the property hereinafter described, and also by a DEED OF TROST thereon of even date herewith to John W. Willson Trustee, have GHANTED, SOLD AND CONVEL ED, and by these presents do GRAVY, SELL AND CONVEY unto Mrs. Mabel M. Snowden, of MoMullen County, Texas, as her sole and separate individual property, said property herein conveyed being located and situated in Dimmtt and La Salle Counties, Texas, and containing 2751.6 acres of 1 am more or less, and being more particularly described as follows, to "wit: FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas, known as Sur. No. 137, patented to Emanuel Ridgeway, assignee, of the T. T. Hy. Col, by virtue of land sarip No. 244, Pat. No. 240, Vol. No. 35, described by notes and bounds as follows: BEGINNING at a stake in prairie the S E Cor of Sur. No. 138, by virtue L. S. 243, Tyler Tap R. W. Co., for S. E. Cor. of this Sur;

THENCE with said Sur. West 1900 vrs. to its S. W. Cor. for Ni W. Cor. of this Sur; THENCE SOUTH 1900 vrs. to S E Cor Sur No. 136 by virtue of Land Serip No. 243, Tyler Tap R

SIAIE OF IEAR COURT, U. L. SALLI MAS 11111111, 300, CUNY DANI LaSalle Co. 111, Texas, Do heriby centify that it is a true air correct copy as the same appears or record in my office. Witness my hand and Seal of Office. ESELY LERIIEL 111, S. 149119

DEGIANIAG at a post the S. 4. cor. of sur. 137, L. S. 244, Tyler Tap H. R. Co., for H. W. Cor. off this Sur;

THENCE with said Sur. Hest 1900 vrs to its S. E. Cor. for N. E. cor. of this Sur;

THENCE South 1900 vrs. set stake for S. E. Cor;

THENCE West 1900 vrs a stake at S E Cor of Sur. No. 138, for S. W. cor of this Sur;

THENCE North 1900 vrs to the place of beginning.

WHND TRACY: 636.5 acres of land, in La Salle County, Texas, and being all of Sur. No. 147, Cert. 28, Fet'd. to E. Ridgeway, assee, of J. V. Massey, by Pat. No. 422, Vol. 30, which calls for 440 acres, at which contains by actual measurement only 636.5 acres described by mates and bounds as follows:

DEGIULIG at a point the S E Cor of Sur. No. 136, Script No. 244, T. T. R. R. Co., the S. W. Cor. of Sur. No. 143, Script 401, J H Gibson for H. H. Cor. of this Sur;

THENCE South 1900 vrs. a stake in prairie for S W Cor.;

THENCE East 1900 vrs. a stake the S. T. Cor. of Sur. No. 145, Script No. 402, J. H. Gibson, for S. E. Cor. of this Sur;

THENCE N. 1900 vrs. a stake the R. T. Cor. of said Sur. No. H. E. Cor. of this Survey;

THCE West 1900 vrs to the beginning.

THER TRACY: 192.1 acres of land out of orig. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 25, Ft. No. 131, Vol. No. 2, Abst. No. 1344, the portion of said Sur. h reby conveyed, being described by mates and bounds as follows:

DEGIUNIG at the S W Cor of sec No. 147, C. V. Massey and the N H Cor of sec. No. 148, A. Salinas for the T T or of this Sur;

THCE E. with Sec. line 1921 vrs. to a stk at the intersection with the E. line of E. W. Aldermes sub-division for the N H Cor of this Sur;

THENCE S. with said sub-division line 567.4 vrs. to a stk set in fence line for the S E Cor of this Sur;

THENCE W. with fence line and past post at 663 vrs. past Cor. of said fence, 1921 vrs. to a stk in J. line of said sec. No. 146, for the S. N. cor. of this Sur;

THCE E. with said line 567.4 vrs. to the place of beginning.

THER TRACY: 640 acres of land in La Salle and Dimaft Counties, Texas, being all of School Section No. 128, issued to the T. T. R. H. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52, described by mates and bounds as follows:

DEGIUNIG at a stake in prairie, at the SE Cor of Sur No. 136, made for T. S. 243, Tyler Tap H. R. Co., for the N H Cor of this Survey;

THCE with said Survey Test 1900 vrs to its S W Cor of this Sur;

THCE S. 1900 vrs set a stake for S W Cor;

THENCE E. 1900 vrs. set a stake for S E Cor;

THENCE N. 1900 vrs to the place of beginning.

And being the land described as Sections Nos. 137, 143, 147, 138 and part of 148 conveyed to Great Martin and T T McKinley by H E Hunter, Adm. by deed dated the 17th day of January, 1917, and show of record in Vol. T-1, page 200, Deed Records of La Salle County, Texas.

Granters guarantee and warrant that the land herein conveyed contains at least 2750 acres,

SIAIC O: IEAH

COURT's U: L'SALU

MARJURHN, JUN EUN JOUNY/Denner Olen, LaSalle Cunin, Texas, Do hereby certify that this is a true arn comect copy as his same appears or record in my office. Witness my hand and Seal of Office

property, her heirs and assigns forever. And we do hereby bind ourselves, our heirs, executors and administrators, to WARMANT AND FUREVER BEFFRD the title to said property unto the said gran above named, her heirs and assigns, against every person whomeower lowfully claiming or to cla the same, or any part thereof.

EXECUTED this 28th day of September, A. D. 1945.

Green Martin GREEN MARTIN Julla Tulley Martin JULIA TULLY MARTIN STATE OF TEXAS: COUNTY CF FRO: REPRISE WE, the understimed authority, on this day personally appeared Green Martin and wife, Julia Tully Martin, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purpose and consideration therein expressed. And the said Julia Tully Martin having been examined by m privily and apart from her husband, and having the same fully explained to her, she, the said Julia Tully Martin acknowledged such instrument to be her act and deed, and declared that she h willingly signed the same for the purposes and consideration therein expressed, and that she id not wish to retract it.

Given under my hand and seal of office, this 28th day of September, A. D. 1945.

Fritz C. Sorrell (Seal). Notary Public in and for Prio County, Texas. PRTE C. SORRELL

Piled October 1, 1945 at 8:05 o'clock A. E. Recorded October 1, 1945 at 11:55 o'clock A. E.

aIRIE O: IÉVAE

COURTI U: L'SALL

MÉGIGIL... EO, CUL, JUUY/DEDRd DERL LaSalle Coud, Taxas. Do herbov certify that this a true ar correct copy as the same appears a record in my office. Nitness my hand and Seal of Office.

SIAIE OF IEAAL

COUN'T' OF L'SALL

MARJARILA: 'EU, EU', 'Gunny/Distnd Clen, LaSalle Cough, Texas Do hereov certify that this a true ars correct copy as the same appears a record in my office, 'Vitness my hand and Seal of Office

THENCE North 1900 vrs. to the place of beginning. SHIRD TRACT: 638.5 acres of land, in La Salle County, Texas, and being all of Sur. No. 147, Cert. 68 Pat'd to E. Ridgeway, asses, of J. V. Massey, By Pat. No. 422, Vol. 30, which for 540 acres, but which contains by actual measurement only 638.5 acres described by mates bounds as follows:

BEGINNING at a post the S. E. Cor. of Sur. No. 138, Scrip No. 244, T. T. R. R. Co., the W. Cor. of Sur. No. 143, Scrip 401, J. H. Gibson for N. W. Cor. of this Sur;

THENCE South 1900 vrs. a stake in prairie for S. W. Cor; THENCE East 1900 vrs. a stake the S.W. Cor. of Sur. No. 145, Scrip No. 402, J. H. Gibson, for a S. E. Cor of this Sur;

THENCE N. 1900 vrs. a stake the N. W. Cor of said Sur. for N. E. Cor. of this Sur.; THENCE W. 1900 vrs. to the beginning. FOURTH TRACT: 193.1 acres of land out of Orig. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No. 1344, the portion of said Sur. hereby conveyed, being described by mates and bounds as follows:

BEGINING at the ". W. Cor. of Sec. No. 147, J. V. Massey and the N. W. Cor. of Sec. No. 148, A. Salinas for the N. W. Cor of this Sur;

THENCE E. with Sec. 11n 1921 vrs. to a stk at the Intersection with the E. 11ne of E. W. Alderman sub-division for the N. E. Cor. of this Sur;

THENCE S. with said sub-division 11ne 567.4 vrs. to a stk set in fence 11ne for the S. E. Cor. of this Sur;

THENCE W. with fence 11ne and past post at 663 vrs. past Cdr. of said fence, 1921 vrs to stk in N. 11ne of said Sec. No. 148, for the S. W. cor. of this Sur;

THENCE N. with said 11ne 587.4 vrs. to the place of beginning; FIFTH TRACT: 640 acres of land in La Salle and Dlamitt Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52, described by mates and bounds as follow

BEGINNING at a stake in prairie, at the S. E. Cor. of Sur. No. 136, made for L. S. 243, Tyler Tap R. R. Co., for the N. E. Cor. of this Survey;

THENCE with said Survey West 1900 vrs. to its S. W. Cor. of this Sur; THENCE S. 1900 vrs. set a stake for S. W. Cor; THENCE E. 1900 vrs. set a stake for S. E. Cor; THENCE N. 1900 vrs. to the place of beginning And being the land described as Sections Nos. 137, 143, 147, 138, and part of 148 conveyed to Green Martin and W. W. McKinley by H. E. Zunter, Adm. by deed dated the 17th day of January, 1917, and shown of record in Vol. T-1, Page 200, Deed Records of La Salle County, Texas; together with the rights of ingress and egress at all times for the purpose of taking said minerals; the said five (5) tracts of land above described containing 2,750 acres, more or less, and being the same identical land conveyed by Green Martin and wife, Julia Tully Martin by deed dated September 28, 1945, recorded in Vol. D-4 on Pages 53-55 of the "eed Records of La Salle County, Texas, and also recorded in Vol. 88 on Pages 86-88 of the Deed Records of Dlamitt County, Texas, to which said Deed and record reference is here made for a full and complete description of said land.

SIAIE OF IEAN COURT: Uf L'SALL

MARJORIL. AN EOY, JOUNY/DEMOND CRAA, LaSalla COSML, TAXAS, DOE NERGOY centify that this is a true any correct CODY as JN E same appears or record in my office. Witness my nand and Seal of Office T'éreur Lettlieu, ur.

leases so made; that Grantees shall receive under such lease or leases four-fifths (the same ing one-fifth{1/5th} to each Grantee}) part of all the oil, gas and other minerals taken and wed under any such lease or leases and he or she shall receive the same out of the royalty povided for in such lease or leases, but Grantees shall have no part in the annual rentals id to keep such lease or leases in force until drilling is begtn;

TO HAVE AND TO HOLD the same unto the said Grantees Edna Mae Jones, Johnle Lorene Acker, jla Authella Akers and Emmett Granvel Murphy, as their separate Indivtdual property, their srs and aszigns forever, and we do hereby bind ourselves, our heirs, executors and adminisators to warrant and forever defend all and singular the said minerals unto the said Grantees air heirs and aszigns against all persons whomeoever lawfully claiming or to claim the same any part thereof, by, through or under us but not otherwise.

WITNESS OUR HANDS this the 27 day of October, 1948.

Mabel M. Snowden Mabel M. Snowden J. G. Snowden J. G. Snowden

STATE OF TEXAS:

SEFORE WE, the undersigned authority, on this day personally appeared J. G. Snowden, known me to be the person whose name is subscribed to the foregoing instrument, and acknowledged me that he executed the same for the purposes and consideration therein expressed, and the Mabel Mullen Snowden, wife of the said J. G. Snowden, having been examined by me privily apart from her husband, and having the same fully explained to her, she, the said Mabel ten Snowden, acknowledged such instrument to be her act and deed, and declared that she had ningly signed the same for the purposes and consideration therein expressed, and that she not wish to retract it.

Given under my hand and seal of office, this the 27 day of October, 1948.

Mrs. A. U. Enagga MRS. A. U. KNAGGS SEAL. Notary Public in and for La Salle County, Texas.

Ged: October 27, 1948 at 2:00 o'clock P. W.

Gorded: October 28, 1948 at 2:50 o'clock P. W. 7724 G. 11 Hines 4

County Clerk, La Salle County, Texas.

SIAIE OF IEANE

COUN'T' U' L'SALL

MARU' 'III... E'U, EU, Journ/Destral Dish LaSalte CQ'nt, Texas, Do Jerser centry that it is a true arr correct copy as the same appears or record in ray office. 'Vittress m hand and Seal of Office

No. 3075 Kana Mae Jones, et al To:Dedlaration and Agreement The Public

VME STATE OF TEXAS)

COUNTY OF McMULLEN|KNOW ALL MEN BY THESE PRESENTS: That, WHEREAS, in the division of the Estate of J. E. Murphy, deceased, between Edna Mae Jones, Johnie Lorene Acker, Mabel Mullen Snowden, Julia Authelia Akers and Emmett Granvel Murphy, it was the intention of the parties that the one who received surface rights would also receive the full right to receive all rentals on existing leases and bonuses and rentals on any future leases off of the land on which the surface rights were conveyed to him or her; and,

WHEREAS, a question has arisen as to the ins truments executed being clear regarding rentals on existing leases, and as to royalty shat is to be reserved in further leases for the benefit of the respective leasor and the other children of J. E. Murphy, deceased, their heirs and assigns;

NOW, THEREFORE, for and in consideration of the benefits running from one to the other, and in order to clarify each deed executed dividing the Estate of J. E. Murphy, deceased, we, Edna Mae Jones, joined pro forma by ber husband Jimmie Jones, Johnie Lorene Acker, joined pro forma by her husband B. V. Acker, Mabel Mullen Snowden, joined pro forma by ber husband, J. G. Snowden, Julia Authelia Akers, an adult feme sole, and Virgiale Gertrude Akers Murphy, an adult feme sole, and sole deviate under the will of Emmett.Granvel Murphy, deceased, do hereby execute this instrument and hereby declare, that in making the division of the property in the Estate of J. E. Murphy, deceased, it was the intention of said parties to grantcto the party receiving the surface, the right to receive all rentals from oil, gas and mineral leases then on said land so granted and to receive all bonuses and rentals on leases that might thereafter be made by the party to whom said surface was conveyed by Special Warranty Deed, provided, however, that the Leasor in said oil, gas and mineral lease, so executed by him or her, should reserve, in each oil, gas and mineral leases so executed, a basic one-sighth (1/8) royalty interest (af all royalty interest was owned by J. E. Murphy at the time of his death, then a full 1/8th royalty would be reserved; otherwise a proportion of $1/8$ th reserved) for the benefit of the Leasor and the other children of J. E. Murphy, deceased, and those claiming under said children or child; and this is particularly true as to the land received by Edna Mae Jones in McMullen County; the land received by Johnie Lorene Acker in McMullen County; the land received by Julia Authelia Akers in La Salle County; and the land received by Emmett Granvel Murphy in McMullen and Duval Counties, Texas, all of which division was by Special Warranty Deeds to said Emmett Granvel Murphy, the deed of Emmett Granvel Murphy being dated October 21, 1948, and recorded in Volume 70, pages 527-531, of Duval County Deed Records, reference to which is here made for all purposes, and the other deeds being executed on or about the same date, being recorded in the respective counties where the land is located, and reference to each of which is here made for all purposes.

SIAIE OF IEAR!

COUNTH of LASALL

MARUYJILIH, ANI cUH, Journ/Dent Clant, LaSalle Co, ni, Taxas, Do hereby certify that this is a true ars comect copy as the same appears or record in my office. 'Nitness mi hand and Seal of Office Thereuy Lertilleu, ur. $$

Juli Autheile Akers /s/ Virginia Gertrude Akers Murphy Virginia Gertrude Akers Murphy THE STATE OF TEXAS COUNTY OF JIM WELLS BEFORE ME, the undersigned authority, a Notary Public in and for Jim Wells County, Texas, on this day personally appeared JIMMIE JONES and EDMA MAE JONES, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration there in expressed, and the said EDMA MA JONES, wife of the said JIMMIE JONES, having been examined by me privily and apart from her husband, and had ng the same fully explained to her, she, the said EDMA MAE JONES, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 16th day of December, 1953. SEAL $/s/$ Judith Gomes JUDITH GOMES Notary Public in and for Jim Wells County, Texas. THE STATE OF TEXAS COUNTY OF LA SAILE BEFORE ME, the undersigned authority, a Notary Public in and for La Salle County, Texas, on this day personally appeared E. V. ACKER and JOHNIE LORENE ACKER, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said JOHNIE LORENE ACKER, wife of the said E. V. ACKER, having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said JOHNIE LORENE ACKER, acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 18 day of December, 1953. SEAL /s/ Richard L. Dobie, Jr. Notary Public in and for La Salle County, Texas.

THE STATE OF TEXAS: COUNTY OF LA SAILE: BEFORE ME, the undersigned authority, a Notary Public in and for La Salle County, Texas, on this day personally appeared J. G. SNOWDEN and MAHEL MULLEN SNOWDEN, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said MAHEL MULLEN SNOWDEN, wife of the said J. G. SNOWDEN, having been examined by meprivily and apart from her husband, and having the samefully explained to her, she, the said MAHEL MULLEN SNOWDEN, acknowledged such instrument to be her act and deed, and she declared that she had willingly sign the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 18 day of December, 1953. SEAL /s/ Richard L. Dobie, Jr. Notary Public in and for La Salle County, Texas.

STARE OF IEXAS

COURT) of LASALLI MARJORIL. SUEED, Sourty/Distit Clen, LaSalle Count, Texas, Do hereby certify that this a true ars correct copy as in same appears or record in my office. Witness m hand and Seal of Office Tresen Letileu u. 516113

IRE STATE UP TRAAS COUNTY OF LA SALLE

BEFORE ME, the undersigned authority, on this day personally appeared JULIA AUTHELIA AKERS, an adult feme sole, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed.

GIVEN UNDER MY HAND AND SEAL O'OFFICE this 18 day of December, 1953.

SEAL /a/ H. H. WILIEMPHAL H. H. WILIEMPHAL Notary Public in and for La Salle County, Texas.

THE STATE OF TRAAS

COUNTY OF JIM WELLS

BEFORE ME, the undersigned authority, on this day personally appeared VIROINIA GERTRUDE AKERS.

WORPHY, an adult feme sole, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed.

GIVEN UNDER MY HAND AND SEAL O'OFFICE THIS 16th day of December, 1953.

SEAL /a/ Judith Gomez JUDITH GOMAS Notary, Public in and for Jim WELLS County, Texas.

Filed December 18, 1953 at 11:40 A.M.

Recorded December 18, 1953 at 2:15 P.M. Post. E. Cook, St. Paul, Fund Third

GEO. H. COOK, COUNTY CLEAR, LA SALLE COUNTY, TRAAS.

SIAIE OF IEAN

COURTY OF LASALLE

MARUNJULI. &;OL-EDR, County/District Clark, LaSalla County, Texas, Do hereby certify that this is a true arn correct copy as the same appears of record in my office. Witness my hand and Seal of Office

CUUNTI UP LA SALLE:

That we, Johnie Lorens Acker, joined pro forma by her husband, K. V. Acker, of Wharton County, Texas; and Virginia Gertrude Akers Murphy, an adult feme sole and sole devisee under the will of Emmett Granvel Murphy, Deceased, of Jim Wells County, Texas, in consideration of the sum of Ten Dollars and other good and valuable consideration to us in hand paid by Mabel M. Snowden of La Salle County, Texas, the receipt of which is hereby acknowledged, have granted, bargained, sold and conveyed and by these presents do grant, bargain, sell and convey unto said Mabel M. Snowden, an undivided two-fifths (2/5ths) interest as her separate individual property in and to a of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Mabel M. Snowden to Johnie Lorens Acker and Emmett Granvel Murphy by Dead dated October 27, 1948, and recorded in Vol. 14, pages 311-312. Dead Records of La Salle County, Texas. Said land is situated in La Salle and Dismit Counties, Texas, and described as follows:

FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas, known as Sur. No. 137, patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue of Land Serip No. 244, Pat. No. 240, Vol. No. 35;

SECOND TRACT: 640 acres of land, more or less, known as Sur. No. 143, Patented to I. W. Bean, assee. of J. H. Gibson by virtue of Serip No. 401, Pat. No. 423, Vol. 30;

THIRD TRACT: 638.5 acres of land in La Salle County, Texas, and being all of Sur. No. 147, Cert. 68, patented to K. Ridgeway, assee. of J. V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 638.5 acres;

FOURTH TRACT: 193.1 acres out of Orig. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No. 144, described by mates and bounes as follows:

BEGINNING at the SW corner of Sec. No. 147, J. V. Massey and the N. W. corner of Sec. No. 148, A. Salinas for the N. W. cor. of this sur.;

THENCE E. with Sec. 116.1 vrs. to a stk. at the intersection with the E. 116.1 of N. W Alderman subdivision for the N. E. cor. of this sur.;

THENCE S. with said subdivision 116.556 vrs. to a stk. set in fence 116.5 for the S. E. cor. of this sur.;

THENCE W. with fence 116.5 and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W. 116.5 of said Sec. No. 148, for the S. W. cor. of this sur.;

THENCE N. with said 116.556 vrs. to the place of beginning;

FIFTH TRACT: 640 acres of land in La Salle and Dismit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52;

together with the rights of ingress and egress at all times for the purpose of taking said minerals; the said five tract of land above described containing 2,750 acres, more or less, and being the same land conveyed by Green Martin, at us to Mrs. Mabel M. Snowden by Dead dated September 28, 1945, recorded in Vol. D-4, Pages 53-55, Dead Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Dead Records of Dismit County, Texas, to which Dead and records reference is here made for a full and complete description of said land.

SIAIE OF IEAN:

COUN'T'Y U'L'SALE

MAFCHINA, MOVCHS, SourY/District Clark, LaSalle County, Texas, Do hereof certify that this is a true ar correct copy as the same appears of record in nyy office. 'Witness my nand and Seal of Office "eley certitio, ur.

Mabel M. Snowden, her heirs and assigns, against every persons whomeoever lawfully claiming or to clel the same or any part thereof, by through or under us but not otherwise.

Witness our hands this 31st day of December, 1953. /a/ Johnie Lorene Acker Johnie Lorene Acker /a/ E. V. Acker E. V. Acker /a/ Virginia Gertrude Akers Murphy Virginia Gertrude Akers Murphy THE STATE OF TEXAS: COUNTY OF LA SALLE: Before me, the undersigned authority, a Notary Public in and for said State and County, on this day personally appeared E. V. Acker and Johnie Lorene Acker, his wife, both known to me to be the persons whose names ardeubsorited to the foregoing instrument, and acknowledged to me that they each executed the same for the purposes and consideration therein expressed; and the said Johnie Lorene Acker, wife of the said E. V. Acker having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Johnie Lorene Acker acknowledged such instrument to be her act and deed, and she declared that she had willing-1 ly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

Given under my hand and seal of office, tids the 31st day of December, A. D. 1953. SEAL /a/ Richard L. Dobie, Jr. Notary Public, La Salle County, Texas. THE STATE OF TEXAS: COUNTY OF LA SALLE: Before me, the undersigned authority, a Notary Public in and for said State and County, on this day personally appeared Virginia Gertrude Akers Mupphy, an adult fame sole, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed.

Given under my hand and seal of office this 31st day of December, A. D. 1953. SEAL /a/ Richard L. Dobie, Jr. Notary Public, La Salle County, Texas. Filed December 31, 1953, at 4:55 P.M. Recorded January 2, 1954, at 9:30 A.M. Rea E. Cask Re, Rea Med. Med. GEC. E. COOK, COUNTY CLERK, LA SALLE COUNTY, TEXAS.

SIRIE OF TEAM COURTY OF LISBALL

MARJORIH, SON CDR County/District Clan LaSalle County, Texas, Do hereby certify that this is a true any correct copy as the same appears or record in my office. Witness my hand and Seal of Office Thereuy Certified, or, $5\mathrm{K}/19$

That we, Mabel M. Snowden, joined pro forma by her husband, Tony Snowden, of la Salle County, Texas, in consideration of the sum of Ten ( $\$10.00$ ) Dollars and other good and valuable consideration to us in hand paid by Johnie Lorene Acker, of McMullen County, Texas, the receipt of which is hereby acknowledged, have granted, bargained, sold and conveyed and by these presents do grant, bargain, sell and convey to the said Johnie Lorene Acker, and undivided one-fifth (1/5) interest as her separate, sole and individual property in and to all of the oil, gas and other minerals in and to the land hereinafter described, the mineral interest hereby conveyed being all of the interest conveyed by Johnie Lorene Acker to Mabel M. Snowden by deed dated December 31, 1953, and recorded in Volume X-4, Page 355, Deed Records of La Salle County, Texas. Said land is situated in La Salle and Dimaft Counties, Texas and described as follows:

FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas known as Sur. 137, patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue land Scrip No 244, Pat. No 240, Vol. No 35:

SECOND TRACT: 640 acres of land, more or less, known as Sur. No. 443, Patented to I. M. Bean, assee. of J. H. Gibson by virtue of Scrip. No. 401, Pat. No 423, Vol. 30:

THIRD TRACT: 638.5 acres of land in La Salle County, Texas, andteing all of Sur. 447, Cert. 68, patented to E. Ridgeway, assee. of J. V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement ony 638.5 acres;

FOURTH TRACT: 193.1 acres out of Ori. Sur. No. 448, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 11 Abat. No 344, described by metes and bounds as follows:

HECINNING at the SW corn. r of Sec. No 447, J. V. Massey and the N. W. Corner of Sec. No. 448, A. Salinas for the N. W. cor. of this sur.; THENCE E. with Sec. line 1921 vrs. to a stk. at the intersection with the E. line of E. W. Alderman subdivision for the N. E. cor. of this Survey, ;

SIAIE OF IEXAS

COUNTY OF LASALE

MARJARIH A. SOLEDA County/District Clerk, LaSalle Count., Taxas, Do hereby certify that this is a true and correct copy as the same appears of record in my office. Witness my hand and Seal of Office

FIFTH TRACT: 640 acres of land in La Salle and Dimmit Counties, Texas, being all of School Suction No. 138, issued to the T. T. R. R. Co., by virtue of Gert. No 244, School File No. 40248, being Abst. No 4468, Pat. No. 154, Vol. No. 52; together with the rights of ingress and egress at all times for the purpose of taking said minerals; the said five tracts of land above desceibed containing 2,750 acres, more or less, and being the same land conveyed by Green Martin et ux to Mrs. Mabel M. Snowden by veed dated September 28, 1945, recorded in Vol. D-4, Pages 53-55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of dimmit County, Texas, to which veed and recorts reference is here made for a full and complete description of said land.

To have and to hold the same unto the said Johnie Lorene Acker as her separate and individual property, her heirs and assigns forever; and we do hereby bind ourselves, our heirs, executors and administrators to warrant and forever defend all and singular the said minerals unto the said Johnie Lorene Acker, her heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by through or under us but not otherwise.

Witness our hands this the 25th day of March, 1965.

THE STATE OF TEXAS, County of La Salle

BEFORE ME, the undersigned, a Notary Public, in and for said County, Texas, on this day personally appeared and Mabel M. Snowden wife of known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed. And the said Mabel M. Snowden wife of the said Tony Snowden having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Mabel M. Snowden acknowledged such instrument to be her act and deed, and declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it. GIVEN MY HAND AND SEAL OF OFFICE, this day of April.

MARJORNIA SOLEDI CountyDetrit Clen, LaSalle Count., Texas, Do heraoy certify that this is a true anr correct copy as the same appears of record in my office. Witness my nand and Seal of Office

THE STATE OF TEXAS

COUNTIES OF LA SALLE AND DIMMIT

S

That we, MABEL M. SNOWDEN, joined pro forma by her husband, JOE G. SNOWDEN, of La Salle County, Texas, in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration to us in hand paid by JOHNIE LORENE ACKER, of McMullen County, Texas, the receipt of which is hereby acknowledged, have GRANTED, BARGAINED, SOLD AND CONVEYED, and by these presents do GRANT, BARGAIN, SELL AND CONVEY to the said JOHNIE LORENE ACKER, an undivided non-participating one-fifth of the whole and entire royalty interest as her separate, sole and individual property in and to all of the oil, gas and other minerals described below, subject to the reservation hereinafter made. Said land is situated in La Salle and Dimmit Counties, Texas and described as follows:

FIRST TRACT: 640 acres of land, more or less, in La Salle County, Texas known as Sur. 137 patented to Emanuel Ridgeway, assignee of the T. T. Ry. Co., by virtue Land Scrip No. 244, Pat. No. 240, Vol. No. 35;

SECOND TRACT: 640 acres of land, more or less, known as Sur. No. 143, Patented to I. W. Bean, assee. of J. H. Gibson by virtue of Scrip. No. 401, Pat. No. 423, Vol. 30;

THIRD TRACT: 638.5 acres of land in La Salle County, Texas, and being all of Sur. 147, Cert. 68, patented to E. Ridgeway, assee. of J. V. Massey by Pat. No. 422, Vol. 30, which calls for 640 acres, but which contains by actual measurement only 638.5 acres;

FOURTH TRACT: 193.1 acres out of Ori. Sur. No. 148, in the name of A. Salinas, situated in La Salle County, Texas, Cert. No. 68, Pat. No. 131, Vol. No. 4, Abst. No. 344, described by metes and bounds as follows:

BEGINNING at the SW corner of Sec. No. 147, J. V. Massey and the N. W. Corner of Sec. No. 148, A. Salinas for the N. W. corner of this sur.;

THENCE E. with Sec. line 1921 vrs. to a stk. at

SIAICOI IEDM COURTI of L'SALLI MARIHILLI, BOLEON, County/District Clen, LaSalle Coysil, Taxas, Do hereby certify that this is a true ars correct copy as th same appears of record in my office. Witness my hand and Seal of Office Thereuy Lertified, or, S A S

THENCE S. with said subdivision line 657.4 vrs. to a stk. set in fence line for the S. E. corner of this Sur.;

THENCE W. with fence line and past post at 663 vrs. past cor. of said fence, 1921 vrs. to a stk. in W. line of said Sec. No. 148, for the S. W. cor. of this sur.;

THENCE N. with said line 567.4 vrs. to the place of beginning;

FIFTH TRACT: 640 acres of land in La Salle and Dimmit Counties, Texas, being all of School Section No. 138, issued to the T. T. R. R. Co., by virtue of Cert. No. 244, School File No. 40248, being Abst. No. 1468, Pat. No. 154, Vol. No. 52; together with the rights of ingress and egress at all times for the purpose of taking said minerals; the said five tracts of land above described containing 2,750 acres, more or less, and being the same land conveyed by Green Martin, et ux. to Mrs. Mabel M. Snowden by deed dated September 28, 1945, recorded in Vol. D-4, Pages 53-55, Deed Records of La Salle County, Texas, and also recorded in Vol. 88, Pages 86-88, Deed Records of Dimmit County, Texas, to which Deed and records reference is here made for a full and complete description of said land.

TO HAVE AND TO HOLD the same unto the said JOHNIE LORENE ACKER as her separate and individual property, her heirs and assigns forever; and we do hereby bind ourselves, our heirs, executors and administrators to warrant and forever defend all and singular the said royalty interest unto the said JOHNIE LORENE ACKER, her heirs and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under us, but not otherwise.

This Deed is made in place of and as a Deed of Correction of a Deed executed by Grantors herein to Grantee, dated March 25, 1965, and recorded in Vol. 135, Pages 135-136, Deed Records of La Salle County, Texas, wherein by error or mistake, Grantors conveyed to Grantee an undivided 1/5th mineral interest in and to all of the oil, gas and other minerals, when in truth and fact Grantors should have conveyed an undivided non-participating 1/5th or the whole and entire royalty interest, and this instrument is made by Grantors and accepted by Grantee in order to correct said mistake, and in all other respects

SIAIE OF IEKAR

COURTY UF LABALLY MARJARILLA BOLOON, County/District Clen, LaSalle Count, Texas, Do hereby certify that this is a true ars correct copy as ths same appears of reoing in thy office. Witness m hand and Seal of Office

WITNESS our hands this the 20 day of fane, 1980.

Mabel M. Snowden

THE STATE OF TEXAS COUNTY OF LA SALLE

BEFORE ME, the undersigned authority, on this day personally appeared JOE G. SNOWDEN and MABEL M. SNOWDEN, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed.

THE STATE OF TEXAS COUNTY OF McMULEN

BEFORE ME, the undersigned authority, on this day personally appeared JOHNIE LORENE ACKER and husband, EDWIN VALENTINE ACKER, known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed.

SIAIE OF IEXAS

COUNTY OF LASALE

MARJARHIA A EQIEDL, County/District Clath, LaSalle Count., Taxas, Do hereby certify that this is a true any correct copy as th same appears of record in my office. Witness my hand and Seal of Office

KARDELL

RESPONSE TO

REQUEST FOR PRODUCTION NO. 8

OIL AND GAS LEASE

THE STATE OF TEXAS

COUNTY OF LA SALLE

and COUNTY OF DIMMU' § KNOW ALL MEN RY THESE PRESEN'T'S TIIAT: 9

THIS AGREEMENT, is made on the Ist day of December, 2009, by and between MARTIN MURPHY SNOWDEN, MICKEY DARRELL SNOWDEN, PATRICIA J. SNOWDEN KARDELL, and MARY DELILLA SNOWDEN, (whose mailing address is ofo Patricin J. Snowden Kardeil, 66 Creatline, Pleasanton, Texas 78064), as "Lessor," whether one or more, and SWIFT ENERGY OPERATING, LLC, a Texas limited liability company (whose mailing address is 16825 Northchase Drive, Suite 400, Houston, Texas 77060, as "Lessee."

WINNESSETH:

1. Grant of Lease.

A. Lessor, in consideration of Ten and No/100 Dollars ( $\$10.00$ ) and other valuable consideration in hand paid by Lessee, the receipt of which is hereby acknowledged, and in consideration of the royulties herein provided and the covenants, agreements and obligations of Lessee herein contained, and upon the conditions and with the limitations hereinafter set forth and contained, hereby leases and lets exclusively unto the said Lessee, for the purposes of investigating, exploring, prospecting, drilling and mining for, and producing oil and gas ("oil and gas" for all purposes of this Lesse being defined to include oil, gas, casinghead gas and the byproducts thereof, and such other hydrocarbon substances and sulphur as are necessarily produced with and incidental to the production of oil or gas from wells on the leased premises), laying pipelines, building tanks, roads, power stations, telephone lines and other structures thereon to produce, save, take care of, treat, store transport and own said products (but not including the construction of housing for its employees), the following described lands and premises in La Salle and Dimmit Counties, Texas (sometimes referred to herein as "said Land" or "Leased Premises"), to-wit:

BEING 2,137.18 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the W. M. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the W. M. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas, and being more particularly described in that certain General Warranty Deod dated September 28, 1945 from Green Martin and wife, Julia Tully Martin to Mrs. Mobel M. Snowden and husband, J. G. Snowden, reconded in Volume D-4, Page 53, Dued Records of La Salle County, Texas.

For the purpose of calculating the payments hereinafter provided for, the Leased Premises shall be treated as comprising 2,137.18 acres of land whether it actually comprises more or less. B. This Lease is expressly made subject to any and all easements affecting said premises, as shown by the records of the County Clerk of the County in which the Leased Premises are situated,

to which reference is here made. C. Lessor expressly EXCEPTS from this Lease and RESERVES to Lessor, all minerals of every kind and character, in, on and under the lands above described, except only the oil and gas as hercin defined in the foregoing provisions of this Section I. In addition, Lessor EXCEPTS from this Lesse, and RESERVES to Lessor, the right to use said land and the surface thereof for the purposes of investigating, exploring, prospecting, drilling, mining for and producing all such other minerals, which are excepted from this Lease, laying pipelines, and building roads, tanks, power stations, telephone lines and other structures thereun to mine, produce, save, take care of, treat, transport, and own said excepted other minerals; provided, however, that such operations shall not unreasonably interfere with Lessee's operations and use of the Leased Premises.

2. Term.

A. Primary Term. Subject to the other provisions herein contained, this Lesse shall be for a term of three years (3) from the date hereof (herein called "primary term"), and so long thereafter as this Lease may be maintained in force and affect under the other terms and provisions hereof. B. Option to Extend Primary Term. Notwithstanding anything contained herein to the contrary, Lessen shall have the option to extend the primary term of this lease as to the lands then covered by this lease for an additional two (2) years (that is, to the date of December 1, 2014) by payment or tonder to Lessor, on or before December 1, 2012, of an amount equal to Six Hundred Dollars ( $\$600.00$ ) per net mineral acre for the lands then covered by this lease. This option to extend will only be available if Lessee should drill at least one well during the primary term of this lease.

3. Rovalties:

The royalties to be paid to Lessor are: A. Oil:

On all oil and on all liquid hydrocarbons extracted from gas under the provisions of Subparagraph B.(1) below, twenty-five percent ( $25.00\%$ ) of that produced and saved from said lands, the same to be delivered to Lessor into the storage tanks or into the pipeline to which the wells may be connected, or, at Lessor's option, such oil and liquid hydrocarbons shall be sold with Lessee's oil and liquid hydrocarbons at the same price received by Lessee (but in no event for less than the market value thereof), or, at Lessor's option, such products shall be delivered to Lessor at the wells into tanks or other receptacles to be furnished by Lessor. Lessor's options hereunder may be exercised from time to time, and the exercise or failure to exercise an option at any time shall not constitute a waiver of Lessor's right to exercise further options. B. Gas: (1) On gas produced from said lands, including casinghead gas and residue gas at the tailgate of any plant through which gas produced from said lands may be processed, twenty-five percent ( $25.00\%$ ) of the market value of the gas at the place of use or sale by Lessee, or at Lessor's option, twenty-five percent ( $25.00\%$ ) of the gas, in kind, either at the well or at the outlet side of the separator, hereinafter provided for, or at the tailgate of any plant through which gas is processed. l'rine

to the use or sale of any gas produced from said lands, Lessee shall run such gas through a field-type separator or other comparable equipment ordinarily used in the industry for the purpose of separating, extracting and saving liquid and liquefiable hydrocarbons recoverable from the gas, and royalties shall be payable on the remaining gas under the provisions of this Subparagraph $B(1)$ and royalties on the extracted liquids shall be payable under the provisions of Subparagraph A, above; provided, however, Lessee shall not be required to run the gas through a field-type separator or comparable equipment if the gas is to be processed in a recycling, absorption, pressuring or other plant belonging wholly or in part to the Lessee or any affiliated or subsidiary company, or if the liquid hydrocarbon content of the gas is so small as to make the installation and operation of field-type separators or comparable equipment unprofitable, or if the pressure of the gas is such that running the gas through separators or comparable equipment would diminish the ability to sell and deliver the separated gas against existing gathering system or pipeline pressures. (2) On condensate and all other products separated, extracted or manufactured from gas produced from said lands by any extraction, absorption, pressuring or other plant belonging wholly or in part to Lessee or any affiliated or subsidiary company, twenty-five percent ( $25.00\%$ ) of the market value at the plant of all such condensate and other products so separated, extracted, or manufactured, or, at Lessor's option, twenty-five percent ( $25.00\%$ ) of such condensate and other products in kind shall be delivered to Lesser at the plant outlet. In the event of the blending of any part of such condensate or other products with chemical additives for making any product therefrom, the royalty on such products, whether paid in kind or at market value, shall be calculated at the plant outlet on the resulting blended product, less Lessor's proportionate share of the direct cost of such chemical additives and the blending thereof. (3) On condensate and all other products separated, extracted or manufactured from gas produced from said lands by an extraction, absorption, pressuring or other plant belonging to a third party or parties, twenty-five percent ( $25.00\%$ ) of the amount received by Lessee from the sale of condensate and other products separated, extracted or manufactured by said plant and credited to Lessee under the terms of Lessee's contract with such plant. (4) The market value of any gas, condensate or other products of gas shall never be less than the total proceeds received by Lessee or by any affiliated or subsidiary company by reason of the sale of such gas, condensate or other products. The total proceeds received shall include, but not be limited to, the fair value of all consideration received by Lessee or by any affiliated or subsidiary company related to the marketing and/or dedication of gas, condensate, other products or reserves (such as take-or-pay payments, take-or-pay settlements and awards, dedication payments, advance payments, contract adjustments, gas exchange consideration, contract buy-out/buy-down payments and similar consideration). Subject to the foregoing, for the purpose of computing Lessor's royalty on gas under Subparagraph B(1) hereof, "market value" of the gas shall be computed at the point of delivery to the purchaser, if sold, or at the point of use, if used, and "market value" is defined as follows: (a) If Lessee shall enter into a bona fide arms-length gas sales contract for the sale of gas to a purchaser which is not an affiliated or subsidiary company, and if such contract shall contain adequate provisions for the redetermination, at least annually, of the price for which the gas is sold, to ensure that the price for such gas shall always be reasonably equivalent to the current market value of gas, when produced, in Texas Railroad Commission District Nos. 1, 2 and 3, the market value of the gas sold under such contract shall be

costs, or, at the option of Lessor, Lessee shall account to Lessor for twenty-five percent ( $25.00\%$ ) of the gross amount received by Lessee from the sale of such sulphur. (2) In the event Lessee should contract with another for the removal or recovery of sulphur content from gas under an arrangement whereby the processor retains all or a portion of the sulphur so removed or recovered for a price less than market value, in compensation for such removal or recovery, then, and in cither of said events, Lessor shall be paid as royalty the market value of twenty-five percent ( $25.00\%$ ) of such sulphur so removed or recovered from such gas. (3) It is further provided that if gas produced from said lands is processed by Lessee for the removal and/or recovery of sulphur content therefrom, and a portion of such gas is used or consumed in the operation of the plant or other facility so utilized in such removal and/or recovery, Lessor shall be paid as royalty the market value of twenty-five percent ( $25.00\%$ ) of the gas so used or consumed in the operation of the plant or other facility.

D. General Royalty Provisions:

(1) Accounting and payments to Lessor of royalties from the production of oil and gas from any well shall commence no later than ninety ( 90 ) days after the initial commencement of production in paying quantities. Thereafter, unless otherwise specifically provided herein, all accountings and payments for royalties shall be made on or before the 28 th day of the second calendar month following the calendar month in which the production occurred. In the event any payment for royalties is not received by Lessor from Lessee within five (5) days of the date it is due and payable, Lessee shall pay to Lessor an additional sum ("Late Charge") equal to five ( $5\%$ ) percent of the amount due. In addition to any other charges permitted herein, if Lessee makes a payment of royalties to Lessor by check and the check is returned to Lessor by Lessee's bank marked NSF (Non Sufficient Funds), then an additional charge of $\$50.00$ per check returned shall be paid by Lessee to Lessor. Should Lessee at any time fail to make royalty payments to Lessor on or before the last day of the second calendar month following the calendar month in which production occurred from any well, and should the default continue for a period of thirty (30) days after Lessee's receipt of written demand therefor from Lessor, Lessor may, at Lessor's election, cancel this Lesse as to such well and said lands ascribed to such well by giving Lessee thirty (30) days advanced written notice of such cancellation. Lessee may avoid such cancellation by paying Lessor all sums (including Late Charge and interest) then owed by Lessee to Lessor prior to the expiration of said thirty (30) day period. Unless otherwise herein expressly provided, and whether or not Lessor shall have cancelled this lesse as to any well and said lands ascribed to such well for non-payment, any royalties which are suspended and not paid to Lessor within the time periods specified therefor shall accrue interest at the rate of ten percent ( $10\%$ ) per annum from the due date until paid. Interest due hereunder shall be compounded annually. Acceptance by Lessor of royalties which are past due shall not act as a waiver or estoppel of Lessor's right to receive or recover any and all interest due thereon under the provisions hereof unless the written acceptance or acknowledgment by Lessor to Lessee expressly an provides. Any tender or payment to Lessor of a sum less than the total amount due the Lessor hereunder which is made or intended to be made as an offer of settlement or an accord and satisfaction by or on behalf of Lessee, must be accompanied by a Notice of Settlement Offer, so denominated, addressed to Lessor. Any such offer of settlement submitted solely by the tender of a check containing language of settlement or accord and satisfaction printed or otherwise inserted thereon shall not be deemed an offer of settlement or accord and satisfaction unless accompanied by such a Notice of Settlement Offer. Lessee shall pay all costs of litigation, including reasonable attorney's fees, expert witness and consultation fees

incurred by Lessor in connection with any lawsuit in which Lessor is successful in recovering any royalties or interest or in terminating this Lesse due to Lessee's failure to pay royalties within the period set forth herein. (2) The execution and delivery of a division order shall never be a requirement or condition precedent to distributing actual royalties to Lessor. If requested by Lessee, Lessor shall execute a written statement of Lessor's interest in minerals or royalties and lessor's current address and social security or taxpayer's I.D. number. Nothing more shall be required of Lessor in order to obtain Lessor's royalty on actual production. (3) For the purposes of calculating royultics payable to Lessor on gas produced and saved from the Lesseo Premises, the volumes of such gas shall be measured and metered as produced at each well, and the heating value or Btu content of such gas shall be determined and calculated as produced at each well. Lessee shall not be required to determine and calculate the Btu content of gas produced from each well more than twice each year. All measurements, metering, determinations, and calculations shall, at Lessee's expense, be effected and performed accurately and in accordance with standards and procedures generally accepted and applied in the industry, and in compliance with any applicable laws and regulations, by qualified parties. (4) If at any time during a calendar year Lessor's royalty is required to be calculated pursuant to Subparagraph $B(4)(b)$ hereof, Lessee shall so advise Lessor in writing within thirty ( 30 ) duys following the month in which such provision became applicable. (5) Once each calendar year, and within sixty ( 60 ) days following Lessors written request therefor, Lessee shall provide Lessors accounting information with respect to production for the prior calendar year. The accounting information shall include, with respect to gas and liquid hydrocarbons produced and sold hereunder, monthly welltread metered volumes, monthly average BTU content, gas analysis reports, sales price, gross sales proceeds (including the amount of reimbursement for taxes and/or costs or expenses), names of purchasers, the amount of royalties paid Lessor during the preceding calendar year, and if Subparagraph $B(4)(b)$ was applicable during such period, the applicable index price for all gas. With respect to oil and/or condensate produced and sold hereunder, the accounting information shall include monthly volumes, sales price, names of purchasers, and the royalties paid Lessor during the preceding calendar year. In the event Lessee drills and completes a well or wells on the Lesed Premises for each well drilled and completed on the Lesed Premises the Lessee shall furnish to the Lessor the true and correct Operator Name and Number, Field Name and Number and Lease Name and Number. All such information must correspond to the information furnished the Railroad Commission of the State of Texas and shall furnish Lessor with the name, number or other identifying information that the production from such well is reported to the Comptroller of Public Accounts of the State of Texas, and such information must be furnished Lessor within sixty ( 60 ) days after such well has been put on line. In the event any such information should change, Lessee shall furnish Lessor notice of such change together with the updated information corresponding to such change. Lessee shall be under a continuing obligation to furnish such information to Lessor upon the request of Lessor but not more than once each calendar year unless there has been a change in such information during such calendar year. (6) Lessor's royalty interest shall, in all cases, bear its proportionate part of all production, severance, windfall profits and ad valorem taxes attributable thereto.

(7) Except as specifically provided in Subparagraphs $B(2)$ and $B(4)$ above, all royaltics payable under Subparagraphs $B(1)$ , and $B(2)$ , and $C(1)$ of this Section 3 shall be without deduction for any costs of producing, marketing, gathering, transporting, separating, dehydrating, compressing, processing, manufacturing, treating, marketing, or other costs involved in making the oil or gas ready for sale or use, nor any part of the costs of the constructing, operating or depreciating of any plant or other facilities or equipment for processing or treating said oil or gas produced from said lands. (8) Lessce shall be under the duty to exercise good faith in the disposition, sale and accounting to Lessor for Lessor's royalty, and Lessee shall keep in mind Lessor's interest as well as its own interest in any and all contracts relating to the sale and/or transmission for the sale of oil and gas and any of its products or constituents, produced under the terms of this Lease. (9) Notwithstanding any other term or provision of this Lease to the contrary, Lessee hereby agrees to and does hereby toll any limitation period provided for under the Laws of the State of Texas for any unpaid royalties due Lessor under the terms and provisions of this Lease and Lessee specifically agrees that the limitations period for any unpaid royalties due Lessor under the terms and provisions of this Lease shall not begin to run unless and until Lessor discovers such non payment or improper payment and acquires actual knowledge of such non payment or improper payment and Lessor and Lessee agree that the "discovery rule" shall be applicable to this Lease to the same extent as if it had been adopted by the Supreme Court of the State of Texas. (10) Limitations. It is expressly understood and agreed that in the event of the assertion of any claim by Lessor that this Lease has terminated, in whole or in part, by reason of a cessation of production and/or operations, Lessee wałves and shall not be entitled to assert and shall not assert any defense based upon any statute of limitations or other law based upon the passage of time prior to Lessor's filing of suit upon the claim ("Defense"), to the extent the Defense might otherwise be based upon any period of time prior to the date of actual delivery to each Lessor against. whom a Defense might be asserted, of a written notice, which is not included with, in or as part of any other communication with respect to lease termination, stating verbatim that Lessee has commenced and is continuing adverse possession of all or part of the Leased Premises under a claim of right that is inconsistent with and is hostile to the Lessor;

Euch notice given hereunder, in order to commence a limitations period, must make specific reference to this Lease, including the names of the parties, the date, and the Leased Premises, must state that it is given pursuant to this Subparagraph 10 of the Lease, and must be accompanied by a true and correct copy of this Subparagraph of the Lease.

It is understood and agreed that, for purposes of a Defense, no claim or cause of action described in this paragraph shall be claimed, or may be found, to have accrued prior to the date of actual delivery of notice is provided herein. (11) Measuring BTU Analysis and Gas Allocation A. In making all gas accounting calculations affecting Lessor's gas royalty, it is recognized and agreed that: (1) the pressure base used in measuring gas produced under the torms of this Lease shall be 14.65 pounds per square inch; (2) the standard pressure base temperature shall be sixty (60) degrees Fahrenheit, correction to be made for pressure according to

Boyle's Law, and for specific gravity, according to tests made by the Balance Method, or by a generally approved method of measuring and testing in use by the industry at that time. Individual well meters used for weoneasurement for allocation purposes shall be construed, tested and maintained using standard methods in general use by the gas industry. B. All gas produced from the Lessed Premises shall be measured by individual well meters at the wellhead prior to conducting any post-production operations, including operations for separation, dehydration, or treatment, unless Lesses elects that all or a portion of the gas and condensate produced from the Lesse flow to centrally located separation, dehydration or treatment facilities ("Central Facility or Central Facilities"), in which case, Lessor consents to such procedure, subject to the terms hereof. Allocation methodologies used by Lessoe shall be in compliance with recommended industry practices and any changes to the allocation methodology described below shall be communicated (including the reason for the change) in advance by Lessoe to Lessor in writing. C. Lessce, at its sole cost, agrees to install check meters ("CM") at the sales meters of all Lease Central Facilities. All gas at the meters that measure the total flow of gas from Central Facilities shall be measured and accounted for before the same leaves a Central Custody Transfer Meter ("CCTM") in accordance with ANSI/API 2530-AGA Report No. 3(1990) and any supplements thereto as adopted by Lessoe. D. For gas accounting purposes, gas samples shall be calculated by a non-affiliated service company according to the technical standards recommended at the time by the Gas Processurs Association (GPA) on an "as-delivered" BTU basis. E. Unless Lessor and Lessoe agree otherwise in writing, Lessoe shall take or cause to be taken, at least quarterly, wellhead gas samples from all producing wells located on the I.case. Gas samples shall be taken in accordance with GPA Standard 2166, or any then current revision thereof and a non-affiliated service company shall analyze all such samples quarterly. Lessoe shall timely respond to written requests sent no more than once a year by Lessor inquiring as to what companies are then analyzing such samples. If a wellhead sample is not taken for any reasons, the gross heating value ("BTU content") from the previous sample at such particular wellhead shall be used as a substitute. Upon Lessor's request in writing, Lessee shall give Lessor's designated representative reasonable notice of the taking of all wellhead gas samples to be taken after receipt by Lessoe of such request (the purpose of which is to measure the gas quality of any well being so samples), in order that the Lessor may have an opportunity to have a representative present when the sample is taken. Lessee shall on written request of Lessor's representative promptly furnish Lessor with copies of all such sample analyses. Lessor, at Lessor's expense, may elect to install Lessor's own meter at or near any wellhead meter, or at any CCTM on the Lesse, or conduct, at Lessors expense, its own independent sampling and analysis of gas from Lesses and/or Lessors meters on the Lease and Lessee agrees to cooperate with Lessor if the Lessor so elects. Any such installation shall be performed by Lessoe. Lessor shall give Lcssces designated representative notice of the taking of Lessor's independent gas samples in order that Lessoe may have an opportunity to have a representative present when any sample might be taken by a representative of the Lessor. Lessor shall, on written request from Lessee, promptly furnish Lessee with copies of all of Lessor's sample analyses if any are taken on behalf of the Lessor. F. Lessoe shall also take gas samples, through continuous sampling, at any CCTM in accordance with principals established by the GPA and such continuous samplings shall

be analyzed monthly by a non-affiliated service company. Should Lessee fail to take the continuous sampling and conduct the independent analysis of such continuous sampling at each CCTM for any reason, then the BTU content taken at the applicable CCTM for the previous month's sample shall be substituted by Lessee in calculating the royalties due tho leasor for any such production. G. Gas Samples taken from a CCTM in the manner called for herein shall be used by the Lessee in calculating royalty payments, and for royalty accounting purposes gas measured at the applicable CCTM shall be allocated back to each well in accordance with this provision. It is further agreed that: (1) Where there is no production flowing to an applicable Central Facility during an entire calendar month from any new wells, or from any existing well(s) that have been reworked or re-completed and, the BTU content of the first gas sample taken at the applicable CCTM, after any such well or wells have commenced to produce or have been restored to production varies by more than two ( $2\%$ ) percent from the BTU content of the gas samples taken at the applicable CCTM during the previous month, either party may request the weighted average BTU content (after adjusting for any free condensate that condenses in the pipeline from the well to the CCTM) of the total wellhead gas samples (taken from all producing wells located on the Lesse) be used to reconcile royalty payments for that month; or (2) If either party can demonstrate that the weighted average BTU content (after accounting for free condensate that condenses in the pipeline from the well to the CCTM) of the total wellhead gas samples (taken from all producing wells located on the Lease that are flowing to the applicable CCTM) varies by more than two ( $2\%$ ) percent from the BTU content of the gas samples taken at the applicable CCTM, during any give month, then the weighted average BTU content of the total wellhead gas samples shall be used to reconcile royalty payments for that month.

The weighted average BTU content referred to above is defined as the sum of the total wellhead MMBTU's divided by the sum of the total wellhead MMCF's, for any given month for wells flowing to the applicable Central Facility.

If a requested reconciliation is not disputed by either party, payments or adjustments attributable to the reconciliation shall be made within 120 days from the date the reconciliation request is received by the other party, otherwise the gas samples taken from an applicable CCTM shall be used for calculating royalty payments. H. If more than one gas sample is taken during a given month at the wellhead or at the CCMT, then the gas sample containing the highest BTU content shall be used if the sample containing the highest BTU content is more than Two ( $2\%$ ) percent higher than any other samples taken at the wellhead shall be used for allocation and the initial sample taken at the CCTM shall be used for calculating royalty payments. I. Lessee shall endeavor to use the same service company(s) to undertake all gas sample analyses required on the Lease and to notify Lessor in writing of any planned changed In its selected service company at least thirty (30) days prior to any such change.

J. Condensate Allocation

(1) For centralized facilities, Texas Railroad Commission ("TRC") well tests will be taken in accordance with and when required by the TRC. The data taken from these tests will be used to allocate condensate to individual wells: (2) If a well flows less than 100 MCFD and has not produced condensate during the last three well tests, and if flowing conditions do not change for that well, Lessor exempts I.essec from further well tests and condensates will not be allocated to the well. (3) Lessoe will conduct a test for the proper duration needed in order to obtain an accurate test. (4) For any well that is re-worked or re-completed, Lessee will endeavor to perform a well test within 30 days after re-establishing production. (5) If the results from a well test indicate a well begins or ceases to produce condensate, Lessee will evaluate the accuracy of the test and decide if additional well testing will be undertaken to determine the allocation of condensate. (6) The results from the well test will be applicable until the next well test is performed.

K. Gas Meter Tests

Lessoe will perform meter tests (i.e. calibration tests and orifice plate inspections) at each wellhcad, and at the CCTM, at least quarterly in accordance with generally accepted industry standards. CCTM meter tests shall be conducted according to the recommendations found in Chapter 21 of the AGA/APi Manual, or any current revisions thereof. Upon Lessor's request in writing, Lessee shall give Lessor's designated representative reasonable advance notice of all gas meter tests to be taken after receipt by Lessoe of such request in order the Lessor may have an opportunity to have a representative present at all meter tests.

1. Fuel Gas Recovered by Vapor Recovery Unit

Only those vapors or emissions recovered through the applicable Central Facility Vapor Recovery Unit will be allocated for purposes of royalty payments.

M. Central Facility

The portics hereto agree to the following allocation methodologies, subject to the provisions hereof for periodic audit and verification, viz: (1) Data Requirements for Allocation Data gathered from the following will be used for allocation calculations: (a) Central Facilities

• The as-delivered (corrected for water vapor) BTU factor taken at the CCTM.
• The monthly gas volume (as corrected for missing or corrected meter data) measured at the applicable CCTM.
• The as-delivered BTU factor of the gas recovered by the applicable Central Facility Vapor Recovery Unit (VRU).
• The monthly volume (as corrected for missing or corrected meter data) measured at the applicable Central Facility VRU meter.
• The total monthly condensate measured at the applicable Central Facility. (b) Wellhead (For each well)
• The Oil/Gas Ratio (OGR) taken from the latest well test for each well flowing to the applicable Central Facility.
• The monthly gas volume (as corrected for missing or corrected meter data) measured at the wellhead meter.
• The as-delivered BTU factor for each wellhead. (2) Allocation Calculations (a) BTU Factors and Water Vapor Corrections
• The dry BTU factors that are to be measured at each meter will be corrected for water vapor by the non-affiliated service company undertaking the analysis ("As Delivered") and the resulting corrected As Delivered BTU factor shall be carried forward in the calculation. This is the application of a volumetric correction for water vapor content to the Dry BTU factor. (b) Central Facility Total Gas Volume
• The total gas measured at the applicable Central Facility is the sum of the corrected monthly produced gas measured at the applicable CCTM and the corrected monthly gas measured at the applicable Central Facility VRU meter. (c) Central Facility Gas MMBTU
• The gas MMBTU measured at the applicable Central Facility will be calculated using the corrected monthly produced gas volume measured at the applicable CCTM and the As-Delivered BTU factor measured by continuous sampler at the applicable Central Facility. (d) Central Facility VRU Gas MMBTU $ndre11\mathrm{s}40$

• The VRU gas MMBTU produced at the applicable Central Facility will be calculated using the corrected monthly gas volume measured at the applicable Central Facility VRU meter and the As-Delivered BTU factor measured at the applicable Central Facility VRU meter. (c) Central Facility Total MMBTU
• The total MMBTU measured at the applicable Central Facility is the sum of the gas MMBTU measured at the applicable CCTM and the VRU gas MMBTU measured at the applicable Central Facility VRU meter. (f) Condensate Allocation
• Monthly, the theoretical condensate produced by each well will be calculated by using the corrected wellhend volumes and the applicable OGR. Summing the theoretical condensate produced by each well will derive the total theoretical condensate produced by all wells. The percentage of the total theoretical condensate provided by each well is then calculated and this percentage is then applied to the total monthly condensate sold from the applicable Central Facility to calculate the condensate allocated to each well for royalty calculation purposes.

(g) Wellstream Measurement

• A correction for measurement of the full well-stream through an orifice meter will be made in accordance with a meter factor based on tests in accordance with herewith. Changes to this method are permitted and Lessow will both communicate and document any changes in advance to L.cssor's designated representative. (h) Gas Allocation
• The corrected measure wellhead volume will be reduced by the meter factor as set out herein. The sum of the corrected wellhead volumes will then be calculated. The percentage of the new corrected wellhead volume totals provided by each well is then calculated and this percentage then applied to the applicable Central l'acility total corrected gas volume to calculate the gas production allocated to each well for the given month. (i) MMBTU Allocation
• A wellhead MMBTU will be calculated for each well from the meter factor corrected wellhead volume and the As-Delivered wellhead BTU factor. The sum of the wellhead MMBTU's will then be calculated. The percentage of the wellhead MMBTU total provided by each well is then calculated and this percentage then applied to the calculated applicable Central Facility total MMBTU to allocate the MMBTU to each well for the give month.

(i) Check Stub BTU Factor

• Due to the allocation process, the As-Delivered wellhead BTU factor may not be the same as the allocated wellhead BTU factor that appears on the monthly royally payment check stub.
• The allocated BTU factor that appears on the check stub is calculated by dividing the allocated wellhead MMBTU by the allocated wellhead volume (MCF).
• The BTU factor that will be reported on the check stub is an allocated BTU factor.

4. Shut-in Rovalties: Minimum Rovalties.

A. If at any time or from time to time there shall be any well or wells on any part or parts of this Lease then in force and effect capable of producing gas or gas and/or condensate in paying quantities but from which gas or gas and/or condensate are not sold or used for lack of an adequate market, Lessee may pay or tender to Lessor as shut-in gas well royalty a sum equal to Fifty and No/100 Dollars ( $\$50.00$ ) per year for each acre of the Leased Premises included in the gas unit on which each such well shall be situated or, if no gas unit designation shall have been made, then on the number of acres which Lessee would be entitled to retain around such gas well under the provisions of Suction 8 hereof, in the event of partial termination. The first such yearly payment or tender shall be made to Lessor within ninety ( 90 ) days after the well was shut-in and succeeding payments shall be made annually thereafter on or before the day of the month upon which such well was shut-in (which shut-in date shall be the beginning date of each annual period for which payment is made). The payment or tender of shut-in gas well royalty may be made by the check or draft of Lessee delivered to Lessor on or before such date of payment. While such shut-in gas well royalty is paid or tendered as above provided, this Lease, insofar as it covers such gas well and the acreage for which such payment is made, shall, subject to the other terms and provisions hereof, remain in force and effect as though such well were producing gas or gas and/or condensate in paying quantities, provided that the payment of shut-in gas well royalty as to one such unit shall have no effect upon the continuance of this Lease as to any other unit or units. It is expressly provided, however, that after the expiration of the primary term, Lessee shall not have the right to continue this Lease in force as to any such gas unit by payment of shut-in gas well royalty for any single period of more than two (2) successive years or three (3) years in the aggregate. B. It is agreed and provided that, notwithstanding the making of such shut-in gas well royalty payments, or otherwise, Lessee shall be and remain: (i) under the continuing obligation to use all reasonable efforts to find a market for ges to be produced from any gas well on the Leased Premises (ii) under the obligation to reasonably develop and explore any such designated tract upon which any producing or shut-in well is situated and (iii) under the obligation to drill all wells on any designated tract upon which any producing or shut-in well is situated as may be necessary to protect the same from drainage by wells on adjoining or adjacent land. It is further agreed and understood that no such payment of shut-in gas well royalty shall be necessary or required to maintain this Lease as to any such designated tract around a well capable of producing gas or gas and/or condensate in paying quantities if such tract is otherwise maintained in force and effect.

a time, but in the event that Lessee may undertake the drilling of two or more wells simultaneously, allowance for time shall be made for the drilling of each said well to the end that Lessee shall receive credit for time accumulated for each well drilled with like effect as if each of said wells had been drilled consecutively. F. Lessee shall, within sixty ( 60 ) days after the termination of this Lease, in whole or in part, under the foregoing provisions hereof, execute and file for record (and deliver to Lessor an executed or certified copy thereof) a written recordable instrument designating and describing by metes and bounds all of the lands covered by this Lease which, upon such termination, are properly included in any shallow or deep oil unit or units or shallow, intermediate or deep gas unit or units, or horizontal units, as herein provided, and Lessee shall at such time release this Lease as to all the lands originally covered hereby not properly included in such unit or units. In the event Lessee shall fall to so designate such oil unit or units and gas unit or units or horizontal units as above provided, or shall fail to file such instrument of designation for record, within said time, then Lessor may give Lessee thirty (30) days written notice by certified mail of such failure, and if Lessee fails to designate such units as above provided within a thirty (30) days from the date of receipt of auch notice, Lessor shall have the right ad privilege to designate such unit or units in the same manner and with the same effect as above provided and such designation, whether made by Lessor or Lessee, shall be effective from the date of termination as above provided. G. Although this Lease may have terminated in part and been partially released under the provisions of this Section 8 it is agreed that Lessee shall have and retain such casements over and across such terminated portion or portions of the land originally covered by this Lease as shall be reasonably necessary for ingress and egress and to enable Lessee to develop and operate the portion or portions of this Lease continuing in effect for the production of oil and gas therefrom, and Lessee shall not be required to move or relocate any pipelines, tanks, separators or other surface equipment or machinery used in connection with such production of oil and gas. H. Lessee agrees, upon Lessor's request, to give Lessor reasonable notice of the intention to take any gas/oil ratio tests of any well on the Leased Premises and, upon Lessors request, Lessee agrees to furnish Lessor with copies of reports of all gas/oil ratio tests, if made, on any well or wells on the Leased Premises, which information shall be held in strict confidence by Lessor and not divulged to any third party or used in any way other than in connection with matters relating to this Lease.

1. Notwithstanding the termination of this Lease as to the portions of the acreage covered hereby and as to depth under the other provisions hereof, this Lease shall neverthcless remain in force and effect as to each oil unit as so designated, so long as oil or gas is produced from such oil unit in paying quantities and so long as additional drilling or reworking operations are conducted on such oil unit as herein provided. In case of cessation of actual production of oil and gas in paying quantities from any oil unit as so designated, this Lease, insofar as it covers and affects such particular oil unit which has ceased producing in paying quantities, shall terminate (notwithstanding the fact that there may be production in paying quantities from other oil unit or units) unless Lessee commences drilling or reworking operations on such particular unit within ninety ( 90 ) days thereafter and shall pursue such drilling or reworking operations on the same or successive wells at intervals of not to exceed ninety ( 90 ) days between the date of completion of operations on one well and the date of commencement of operations on another; and if production of oil or gas in paying quantities is restored on such oil unit, this Lease shall remain in force and effect as to such oil unit, so long

thereafter as oil or gas is produced therefrom in paying quantities or additional drilling or reworking operations are had thereon as above provided. But, it is further provided that production or operations on one such oil unit as so designated shall have no effect upon the continuation of this Lease as to any other oil unit or units and that production of oil shall have no effect upon the continuation of this Lease as to any gas unit. It is further provided that, if there shall be production of oil from perforations more than 10,000 feet below the surface of the land under a deep oil unit and if such production of oil below 10,000 feet shall cease and Lessee's rights as to such deep oil unit are not maintained, as above provided, and if there is production of oil in paying quantities or if, as a result of such additional drilling or reworking operations, production of oil in paying quantities is obtained from a shallower depth less than 10,000 feet on such oil unit, Lessee shall proceed to designate shallow oil unit or units allocable to such oil production, in the same manner as provided in the foregoing provisions hereof for development and insofar as some covers such deep oil unit so ceasing to produce, shall thereupon terminate and be released as to all the remainder of the acreage in such deep oil unit and this lease shall likewise terminate in depth as to all depths and horizons under each such shallow oil unit more than 100 feet below the stratigraphic equivalent of the deepest depth from which oil is being produced from such shallow oil unit. If there is a cessation of production of oil in paying quantities from any oil unit and as a result of such additional drilling or reworking operations such production of oil in paying quantities is not restored, but production of gas in paying quantities is obtained, or if any oil well is reclassified as a gas well under the Rules and Regulations of the Railroad Commission of Texas, or if any oil well ceases to produce oil in paying quantities, but commences or continues to produce gas in paying quantities, than upon the cessation of such drilling or reworking operations, such reclassification, or such other event, Lessee shall proceed to designate a gas unit allocable to such gas production covering acreage in such oil unit and/or from any other acreage then covered by this Lease which is not already included in a gas unit with gas production from the same horizon or horizons, including acreage in any other existing oil units designated hereunder, in the same manner provided in the foregoing provisions hereof for development and designation after the expiration of the primary term, and this Lease shall continue in force and effect as to each such gas unit so long as gas is produced therefrom in paying quantities (or gas is capable of being produced therefrom in paying quantities, with all shut-in gas well royalty paid thereon) or additional drilling or reworking operations are conducted thereon as hereinabove provided, and this Lease insofar as some covers such oil unit so ceasing to produce in paying quantities shall thereupon terminate and be released as to all the remainder of the acreage, if any, in such oil unit which is not included in such gas unit; and this Lease shall likewise terminate in depth as to all depths and horizons under such gas unit more than 100 feet below the stratigraphic equivalent of the deepest depth from which oil or gas is being produced from such gas unit. 3. Notwithstanding the termination of this Lease as to a portion or portions of the acreage covered hereby and as to depth under the other provisions hereof, this Lease shall nevertheless remain in force and effect as to each gas unit as so designated so long as gas is produced from such gas unit in paying quantities (or capable of being produced therefrom in paying quantities, with all shut-in gas well royalty having been paid thereon); and if the actual production of gas in paying quantities from any gas unit shall cease, this Lease, insofar as it covers and affects such particular gas unit which has ceased producing in paying quantities, shall terminate (notwithstanding the fact that there may be production in paying quantities from some other gas unit or units) unless Lessee shall commence drilling or reworking operations on such particular gas unit within ninety ( 90 ) days thereafter and shall pursue such drilling or reworking operations on the same or successive wells at intervals not to exceed ninety ( 90 ) days between the date of completion of operations on one well and the date of

commencement of operations on another and, if production of gas in paying quantities is restored on such gas unit, so long thereafter as gas is produced therefron in paying quantities (or capable of being produced therefrom in paying quantities, with all shut-in gas well royalty being paid thereon), or additional drilling or reworking operations are had thereon as above provided. It is further expressly provided that production or operations or paying of shut-in gas well royalty on one gas unit as so designated shall have no effect upon the continuance of this Lease as to any other gas unit or units and that production of oil shall have no effect upon the continuation of this Lease as to any gas unit. If an oil unit shall be included within the same area embraced within a larger gas unit and if there is a cessation of production of gas in paying quantities from such gas unit and Lessee's rights as to such gas unit are not maintained as above provided, then this Lease shall terminate as to only such portion of the gas unit as is not included within the oil unit or units as so designated. It is further provided that if there shall be production of gas from perforations more than 8,500 feet below the surface under a deep gas unit and if such production of gas below 8,500 feet shall cease and Lessee's rights as to such deep gas unit are not maintained (as a gas unit or as oil unit or units) as above or below provided, and if there is production of gas in paying quantities from perforations greater than 6,000 feet but less than 8,500 feet below the surface (intermediate gas unit), or from perforations less than 6,000 feet below the surface (shallow gas unit), or if, as a result of such additional drilling or reworking operations, production of gas in paying quantities is obtained from the intermediate depth between 6,000 feet and 8,500 feet below the surface, or from the shallow depth less than 6,000 feet on such gas unit, such production shall maintain this Lease only as to the intermediate gas unit or shallow gas unit, as the case may be, surrounding same and this Lease shall promptly terminate and be released as to all the remainder of the acreage (except any oil units) in such deep gas unit; and this Lease shall likewise terminate in depth as to all depths and horizons under such deep gas unit more than 100 feet below the stratigraphic equivalent of the deepest depth from which gas is being produced (or gas is capable of being produced in paying quantities, with all shut-in gas well royalty having been paid thereon), from any well completed on such intermediate gas unit, or shallow gas unit, as the case may be. It is further provided that if there shall be production of gas from perforations more than 6,000 feet and less than 8,500 below the surface under an intermediate gas unit and if such production of gas between 6,000 feet and 8,500 feet shall cease and Lessee's rights as to such intermediate gas unit are not maintained (as a gas unit or as oil unit or units) as above or below provided, and if there is production of gas in paying quantities or if, as a result of such additional drilling or reworking operations, production of gas in paying quantities is obtained, from a shallower depth less than 6,000 feet on such gas unit, such production shall maintain this Lease only as to the shallow gas unit surrounding same and this Lease shall promptly terminate and be released as to all the remainder of the acreage (except any oil units) in such intermediate gas unit; and this Lease shall likewise terminate in depth as to all depths and horizons under such gas unit more than 100 feet below the stratigraphic equivalent of the deepest depth from which gas is being produced (or gas is capable of being produced in paying quantities, with all shut-in gas well royalty having been paid thereon), from any well completed on such shallow gas unit. If there is a cessation of production of gas in paying quantities from any gas unit and as a result of such additional drilling or reworking operations such production of gas in paying quantities is not restored, but production of oil in paying quantities is obtained, or if any gas well is reclassified as an oil well under the Rules and Regulations of the Railroad Commission of Texas, or if any gas well ceases to produce gas in paying quantities, but commences or continues to produce oil in paying quantities, then upon the cessation of such drilling or reworking operations, such reclassification, or such other event, Lessee shall proceed to designate oil unit or units allocable to such oil production covering acreage in said gas unit and/or from any other acreage then covered by this Lease which is not already included in an oil unit with oil production from the same horizon or horizons, in the same manner provided in the foregoing provisions hereof for development and designation after the

expiration of the primary term, and Lessee shall be entitled to develop and maintain this Lease in force as to any portion of such former gas unit (together with any other acreage then covered by this Lease) not included in said newly designated oil unit or units by commencing drilling or reworking operations on such remaining acreage in the same manner and in the same intervals as provided in Subparagraph 8.B. hereof for development and designation of oil units after the expiration of the primary term, provided the first such drilling or reworking operation commences on or before the expiration of ninety ( 90 ) days following Lessee's designation of said new oil unit or units; and upon conclusion of any such development by Lessee this Lease insofar as same covers such gas unit so ceasing to produce in paying quantities shall thereupon terminate and be released as to all the remainder of the acreage, except as to such oil unit or units; and this Lease shall likewise terminate in depth as to all depths and horizons under such such oil unit more than 100 feet below the stratigraphic equivalent of the deepest depth from which oil or gas is being produced from such oil unit; and this Lease shall continue in force and effect as to each such oil unit so long as oil or gas is produced therefrom in paying quantities or additional drilling or reworking operations are conducted thereon as hereinabove provided. K. It is expressly provided that upon the termination of this Lease as to all acreage covered hereby, SAVE and EXCEPT as to shallow and/or deep oil unit or units, and shallow, intermediate and/or deep gas unit or units or horizontal units (whether at the expiration of the primary term or cessation of drilling and development, or subsequent thereto) as above provided, this Lease shall also terminate as to all depths and horizons greater than 100 feet below the stratigraphic equivalent of the deepest depth from which production in paying quantities is then being had (or at which a well capable of producing gas in paying quantities is completed) on each such unit. Lessee shall, at such time, release this Lease as to all depths as to which this Lease shall terminate, as herein provided, and shall file such release of record and furnish a copy of same to Lessor. L. The parties hereto expressly agree that if there should be or appear to be any conflict or inconsistency between any of the terms and/or provisions of this Section 8 and any of the terms and/or provisions of any other Section or part of this Lease, the terms and provisions of this Section 8 shall prevail and control.

9. Reasonable Development and Exphiration.

The drilling of wells in accordance with the spacing provisions of Section 8 shall not be construed as an agreement or construction on the part of Lessor that such drilling would constitute reasonable development or exploration of the Leased Premises; but Lessee agrees to drill all such additional well or wells on the Leased Premises, or such portion or portions thereof as may be in force and effect from time to time, as may be necessary to reasonably develop and explore the same for the production of oil and gas.

10. Offsetting Production.

For the purposes of this Section 10, a producing well located off the Leased Premises, but within 500 feet of the Leased Premises shall be defined to be a well draining the Leased Premises.

In the event a well in which Lessee owns an interest (whether working interest, overriding royalty interest and/or a royalty interest) producing oil and/or gas in paying quantities shall be brought in on adjoining land (whether such adjoining land be owned by Lessor or any third person) and draining the Leased Premises (and if there is no offsetting well on the Leased Premises), Lessee shall,

within one hundred twenty (120) days after the commencement of production from such draining well, or in the event a well in which Lessee owns no interest (whether working interest, overriding royalty interest and/or royalty interest) producing oil and/or gas in paying quantities shall be brought in on adjoining land (whether such adjoining land be owned by Lessor or any third person) and draining the Lessez Premises (and if there is no offsetting well on the Lessez Premises), Lessee shall, within one hundred twenty (120) days after the commencement of production from such draining well, Lessee shall do one of the following: A. Commence and drill an offset well on the Lessez Premises (offsetting said well on adjoining or adjacent land) and shall drill said well on the Leased Premises to a depth sufficient to test the sand or horizon from which the well on the adjoining land is producing and in a bone fide attempt to complete said well as a producer in paying quantities in the sand or horizon from which the well on adjoining land is producing; provided, if such well is lost or abandoned during the drilling thereof by reason of meciancral difficulties or by reason of encountering a cavity or impenetrable substance which renders further drilling impracticable, then Lessee shall have the right to commence another well within one hundred twenty days (120) days after the abandonment thereof and such substitute well shall be considered for all purposes as the abandoned well; or B. Release from this Lease all rights from the stratigraphic equivalent of the top of the producing interest down to the stratigraphic equivalent of the base of the offsetting producing geological formation in and to and not less than the applicable acreage specified in Section 8.A.(1) LESS and EXCEPT any geological zones which are then producing oil and/or gas or are capable of producing oil and/or gas based upon electric log analysis, sidcwall core analysis and/or open hole formation test data in wells drilled on the Lessez Premises, by Lessee, or its successors and assigns; or C. Pay Lessor compensatory royalty pursuant to the provisions of Section 3 above, which compensatory royalty shall be based upon actual production from the draining well; provided, however, no compensatory royalty shall be due or payable during any period of time when the draining well is shut-in and no production of oil and/or gas is being obtained from the draining well.

It is understood that Lessee shall be obligated to protect the-Lessed Premises from drainage by wells drilled on other lands of Lessor not included in this Lease to the same extent as though such draining wells were drilled on lands belonging to third parties. If at the time the obligation to drill an offset well accrues, Lessee shall be engaged in the drilling of another well on the Lessez Premises, Lessee shall have a period of thirty (30) days after the date of completion or abandonment of such other well then being drilled by Lessee or one hundred twenty (120) days after the commencement of production of such offset well, whichever shall be the longer period, within which to commence the actual drilling of such offset well on the Leased Premises.

11. Removal of Property and Fixtures.

Lessee shall have the right, at any time during or within one hundred eighty (180) days after the expiration or termination of this Lease but not thereafter, to remove all property and fixtures placed by Lessee on said land or the terminated portion of this Lease, weather permitting. All property and fixtures not to removed within such time shall become the property of Lessor It is further provided that Lessee shall not have the right to remove the casing from any water well or dry hole or abandoned well in violation of the provisions of Subparagraphs A and B of Section 16 hereof. Nothing herein contained shall relieve Lessee from its obligation to plug all wells drilled or utilized by Lessee in its

operations hereunder.

12. Assignments: Releases.

The rights of either party hereunder may be assigned, in whioe or in part, and the provisions hereof shall extend to the heirs, successors and assigns of the parties hereto; but no change or division in the ownership of the land or royaltics, however accomplished, shall operate to enlarge the obligations or diminish the rights of Lessee. No sale or assignment by Lessor shall be binding upon Lessee until thirty (30) days after Lessee shall be furnished with a copy of the recorded instrument evidencing some. In the event of the assignment of this Lease as to a segregated portion of said land, the shut-in gas well royalty and minimum royalty payable hereunder shall be apportionable among the several leasehold owners ratably according to the surface area of each, and default in payment by one shall not affect the rights of other leasehold owners hereunder: Subject to the apportionment of shut-in gas well royalty and minimum royalty as provided above, in case Lessee assigns this Lease in whole or in part, Lessee shall be relieved of all other obligations with respect to the assigned portion or portions arising subsequent to the date of the assignment. Lessee shall furnish Lessor a copy of any assignment of this Lease in whole or in part. Lessee may at any time execute and deliver to Lessor, and place of record, a release or release covering any portion or portions of the above described premises and thereby surrender this Lease as to such portion or portions and be relieved of all subsequently accusing obligations as to the acreage surrendered (but not as to obligations which have theretofore accrued).

13. Houses and Other Structures.

Notwithstanding the rights granted in Section 1 hereof to lay pipelines, build ranks, power stations and telephone lines on the above lands, it is expressly understood, stipulated and agreed that this Lease does not confer upon Lessee any right or privilege to construct or maintain any lease houses, camps, warehouses, or other like structures on the Leased Premises; and Lessee shall never construct any such buildings or improvements on the Leased Premises and shall never use the Leased Premises for any such purposes; Lessee shall, however, have the right to house employees or consultants of the Lessee, or of any operator, drilling contractor or other contractor of Lessee, in trailer houses and other movable housing located on the Leased Premises while such personnel are engaged in drilling or reworking operations on the Leased Premises, and the Leasee or any contractor of Lessee may store material and equipment used or expected to be used in drilling or reworking operations on the Leased Premises in movable buildings on the Leased Premises.

14. Operations.

A. Lessee agrees that, prior to the commencement of any operations on the Leased Premises, Lessee shall give Lessor notice of the commencement of such operations, the approximate date of such commencement and the location of the same; such notice to be given within a reasonable time prior to the commencement of such operations, and to be mailed to Lessor at the address specified at the beginning of this Lease. B. Lessee agrees to pay the surface owner the sum of $\$3,000.00$ per acre for each acre of the Leased Premises utilized for drill site, roads, pipelines and location of tank batteries and other surface equipment up to the first three (3) acres utilized and the sum of Two Thousand and No/ 100 Dollars ( $\$2,000.00$ ) per acre for each acre utilized after three (3) acres and Fifty and No/ 100 Dollars ( $\$50.00$ ) per rod for pipelines, which payment shall cover the usual and ordinary damages occurring to

the Leased Premises from Lessee's use thereof in drilling and producing operations conducted in a reasonable and prudent manner, and which payment shall be made to the surface owner prior to the commencement of drilling and/or producing operations. Should any such well be productive of oil and/or gas, Lessee further agrees to pay to the surface owner the additional sum of $\$1,500.00$ per year in advance, which payment shall cover the usual and ordinary damages occurring to that portion of the Leased Premises utilized for the well location, location of tank batteries and other surface equipment, pipelines, electric and telephone lines, and the access road to such well, in producing operations conducted in a reasonable and prudent manner, the first of which annual payments shall be made to the surface owner within thirty (30) days following the first anniversary date of commencement of actual production, and annually thereafter during the productive life of such well. The above payments shall not be deemed compensation for damage resulting to the Leased Premises from blowout, spillage of oil, salt water or chemicals, or damages resulting from an unreasonable, extraordinary or negligent use of the Leased Premises by Lessee, and Lessee agrees to pay the surface owner reasonable compensation for any such damage. C. The amount per acre compensation and the amount of the annual payment stated in Subparagraph B hereof shall remain in force and effect for a period of three (3) years from the date hereof. Thereafter, said amount shall be adjusted upward by the amount, if any, of the percentage increase in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor for the month and year such payment is due, over the Consumer Price Index so published for the month of December 2008. In making such determination of the adjustment it shall be the obligation of Lessor to furnish such information to Lessee. In no event shall such payments be reduced. Should publication of the Consumer Price Index be discontinued, the parties shall accept comparable statistics on the cost of living as shall be complied and published by an Agency of the United States or by a responsible financial periodical of recognized authority. D. If the construction of any drilisite (including associated pits), location for storage facilities or other lease equipment shall require the removal of top soil, such top soil shall be stored separate from other soils, so that the same may be spread back over the surface during restoration operations. Within a reasonable time after cessation of drilling or reworking operations or plugging and abandonment of the hole (but not to exceed three months thereafter), weather permitting Lessee shall level all dumps, fill all pits, remove or rake and burn all brush and debris, replace any top soil removed, and put the surface of the land in substantially the same condition as it was before the commencement of such operations, and shall dise the utilized area. Lessee agrees that if any oil-based mud or drilling compound containing a hydrocarbon base or any material which is harmful to the soil is used in Lessee's operations on said land, Lessee shall remove all such muds, compounds and materials from the land before pit filling and leveling is undertaken, and all such harmful materials shall be disposed of by Lessee off the Leased Premises. Water-based drilling mud not containing any of said substances may be spread over the wellsite location after it is properly dried, provided it meets with the industry standard for chloride allowance. E. If any well drilled hereunder is completed as a producer of oil and/or gas, as a part of Lessee's surface restoration obligation, Lessee shall reduce the area of the pad constructed for drilling such well to a size reasonably necessary to accommodate producing and reworking operations, so that the excess area may be restored to agricultural use. Within a reasonable time after any such well has been plugged and abandoned (but not to exceed three months thereafter, weather permitting), Lessee shall restore the surface utilized in the production and operation of such well in accordance with the provisions of Subparagraph D. of this Section 14.

F. At Lessor's and/or surface owners request, Lessee agrees to erect and maintain fences around all pits dug on the Leased Premises in connection with drilling or reworking operations promptly after cessation of such drilling or reworking operations, and shall erect and maintain fences around all tank batteries, hazardous machinery and conditions and other facilities for the protection of livestock. Such fences shall be constructed of at least five (5) strands of barbedwire, and properly braced and maintained, so as to prevent livestock from entering the area so enclosed. G. Lessee agrees not to allow any waste oil or salt water to flow over the surface of the Lesed Premises, and not to allow same to drain down any draws, drains, creeks or ravines on the Leased Premises. Lessce agrees to dispose of all waste oil, salt water and other contaminating substances off of the Leased Premises and in compliance with all applicable governmental rules and regulations. Lessce agrees to promptly repair any leaks in tanks, pits, pipelines, engines or from other facilities of Lessee, and to clean up any leaks or spills on the Leased Premises. Should Lessee fall to make any such repair within fifteen (15) days from receipt of notice by Lessor and/or surface owner of the condition requiring repair, Lessor shall have the right to make such repair, and Lessee shall be required to pay Lessor and/or surface owner as their interest may appear, upon demand, the reasonable cost of such repair, and reasonable compensation for any damage to the Leased Premises resulting from such condition. H. Lessee agrees to use reasonable care at all times in all of Lessee's operations on the Leased Premises to prevent injury or damage to livestock, buildings or other property of the Lessor, or Lessor's surface tenant, situated on the surface of said land, or water wells and tanks located thereon; and Lessee agrees to pay Lessor for all damages to buildings, livestock, fences, tanks, water wells and, without limitation, all other property of the Lessor and/or surface owner situated on the surface of the Leased Premises resulting from Lessee's operations thereon; and Lessee agrees to pay the surface tenant for all damages to livestock, growing crops and improved pasturage and other property of the tenant situated on the Leased Premises and resulting from Lessee's operations thereon. I. Lessor and/or surface owner shall have the right to designate the location of any road to be used by Lessee for access to the Leased Premises, and for access to any well location which Lessee may utilize on the Leased Premises but such designation of such location shall not be unreasonable. If an existing road is designated for access, Lessee shall use such road to the point designated by the Lessor and/or surface owner and shall construct a new road from such point along the route designated by Lessor and/or surface owner to a well location needed by Lessee. Lessee agrees to grade not more than one road from an existing road to each location on the Leased Premises and to confine all travel incident to the drilling and producing of such well to the single graded road. All roads constructed by Lessee shall be of a good quality and design, constructed with gravel or caliche, and be suitable for all weather use, and Lessor and/or surface owner shall have the right to use any such road. Lessee shall maintain all roads constructed by Lessee in good condition and repair during the term of this Lease. Should Lessee be permitted to use an existing road for access, Lessee shall promptly make repairs to the road when needed, with periodic grading, and particularly following rains. Lessee shall fill all cuts and depressions with comparable road material to that existing, and grade the same to a smooth condition at such time as the road has dried to the point where such repairs and maintenance may be affected. Should Lessee fall to maintain an existing road used by Lessee in good condition and repair, Lessor and/or surface owner may (1) make such repair at Lessee's expense and (2) after thirty (30) days written notice to Lessee, forbid Lessee's further use of said existing road and require Lessee to construct a road for access at a route designated by Lessor and/or surface owner.

Lessor and/or surface owner shall have the right to require Lessee to remove road materials from any road constructed by Lessee, and to restore the surface occupied by the road to as near its original condition as is reasonably practicable when such road is no longer needed by Lessee. J. Lessee agrees that Lessee shall not cut or go over any fence or fences at any time or in connection with any operations on the Lesed Premises without first obtaining the express consent of Lessor and/or surface owner. If Lessor and/or surface owner consents to the cutting of a fence, the cut must be made at the place designated by Lessor and/or surface owner and Lessee agrees, prior to cutting any fence, to install and brace three "comer type" posts with at least ten (10) inch tops on either side of the proposed cut buried five (5) feet in the ground and "H" braced with at least a three (3) inch steel pipe and to securely attach the wires thereto, so that when the fence is cut there shall be no slackening of the wires. If the cut in such fence is an outside fence, Lessee agrees, promptly after making such cut, to install and maintain an adequate cattle guard in the opening with a metal gate across the same, which gate Lessee shall keep locked at all times when not in use. If the cut in the fence is an inside fence, Lessee agrees to install a substantial metal gate or cattle guard, whichever shall be designated by Lessor and/or surface owner, in such opening. Such gates and cattle guards shall become the property of Lessor and/or surface owner as their interest may appear. Lessee agrees to promptly close all gates and properly maintain all gates and cattle guards which Lessee and Lessee's agents, servants and/or employees may use in Lessee's operations on the Lesed Premises to prevent the escape of livestock through any open gates. At the request of Lessor or the surface owner, Lessee agrees, at Lessee's expense, to place a guard or representative at the gate leading to and from the Lesed Premises, which guard or representative shall be responsible for keeping such gate closed when not in actual use for ingress and cgress to the Lesed Premises for and during the term of drilling and completion operations. K. Prior to erecting any storage tanks, pipelines, compressor stations, or other lease facilities required by Lessee for operations under this Lease, Lessee shall advise Lessor and/or the surface owner of Lessee's intentions, and said parties shall mutually decide upon the location of such facilities, taking into consideration the surface use by the surface owner and Lessee's needs in conducting Lessee's operations. Lessee agrees to keep any surface equipment or facilities in good condition, well maintained, and attractive in appearance. If Lessor and/or surface owner has fields located on the Lesed Premises, Lessee agrees that any proposed location for Lessee's operation shall be situated in such a manner so as to prevent interruption in the normal agricultural use of such fields and to place Lessee's roads and facilities in such a manner so as to limit intrusion on such fields with Lessee's operations. L. Lessee agrees to bury all pipelines with a cover of at least thirty-six (36) inches from the top of the pipe to the surface of the ground and to place all pipeline improvements below the surface except for necessary meter runs and valve sites adjoining well locations. In excavating the pipeline ditch, Lessee agrees to "double ditch" Lessee's trench. The top soil shall be placed to one side and in backfilling the ditch, the top soil shall be replaced on top of the backfill after the construction. At Lessor's and/or surface owner's request, Lessee agrees to construct terraces across the right-of-way in such manner as may be necessary to protect against erosion and to maintain reasonable and appropriate surface drainage patterns. All construction vehicles shall utilize the designated pipeline route and/or the road(s) designated by the surface owner. The location of any pipeline, if laid, must be approved by Lessor and/or surface owner which consent shall not be unreasonably withheld.

15. Environmental Provisions.

A. A material condition to the grant of this Lease is Lessoc's agreement that all operations conducted by Lessee, its agents, servants, employees, contractors, permittees, successors or assigns on the Leased Premises or on Lessor's adjoining property shall be conducted in compliance with all applicable laws, statutes, rules and regulations of any governmental authority having jurisdiction including, without limitation, all safety regulations and requirements of the Railroad Commission of Texas and all environmental laws, statutes, rules and regulations of any federal, state or local authority at any time applicable to the Lessee's operations on the Leased Premises. B. Lessee agrees that (i) no toxic or hazardous substances shall be disposed of or otherwise deposited or released in or on the Leased Premises; (ii) Lessee shall not engage in and shall not permit any other party to engage in any activity with respect to property of Lessor which would cause (a) the Leased Premises to become a hazardous waste treatment, storage or disposal facility within the meaning of the Resources Conservation and Recovery Act of 1986 ("RCRA") 42 U.S.C. $\$1251$ of seq., as now or hereafter amended or any similar federal, state or local law or ordinance or any other environmental law, (b) a release or a threatened release of a hazardous substance from or to the Leased Premises within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA") 42 U.S.C. $\$9601$ of seq., as now or hereafter amended or any similar federal, state or local law or ordinance or any other environmental law, or (c) the discharge of pollutants or cffluents into any water source or system or the discharge into the air of any emissions, which would require a permit under the Federal Water Pollution Act of the Clean Air Act or any similar federal, state or local law or ordinance or other environmental law; (iii) Lessee shall not permit any substance or conditions in or on the Leased Premises which might support a claim or cause of action under RCRA, CERCLA or other federal, state or local environmental statutes, regulations, ordinances or other environmental regulatory requirements. As used in the preceding provision, the terms "hazardous substance" and "release" shall have the meanings specified in CERCI.A and the terms "solid waste" and "disposal" or "disposed" shall have the meanings specified in RCRA; provided that in the event either CERCLA or RCRA is amended so as to broaden the meaning of any term defined hereby, such amendments shall apply to Lessee's covenants herein, and provided further to the extent that the laws of the State of Texas establish a meaning for such terms which are broader than that specified in either CERCLA or RCRA, the broader meanings or definitions shall apply. Upon the release of any acreage covered by this Lease as contemplated by the other terms hereof, the covenants and obligations of Lessee respecting surface restoration specifically shall include, without limitation, the environmental and contamination provisions of this Section 15. C. Lessee agrees (1) to remove from the Leased Premises and Lessors adjoining property, if, as, and when required by law, any hazardous materials placed or released thereon by Lessea, its employees, contractors, agents or permittees, (2) to perform remedial work where the need therefore arises in connection with Lessee's operations or activities on the Leased Premises, and (3) to comply in all respects with all federal, state and local governmental laws and regulations governing operations by and remedial work on or associated with the Leased Premises. Such remedial work shall be performed by one or more contractors selected by Lessee and approved in advance by Lessor and/or surface owner, and under the supervision of a consulting engineer selected by Lessee and approved in advance by Lessor and/or surface owner. All costs and expenses of remedial work made necessary by Lessee's operations shall be paid by Lessee, including, without limitation, the charges of such contractors and/or the consulting engineer, and Lessor's reasonable attorneys' fees and costs incurred in connection with the monitoring or review of remedial work. If Lessee shall fail to timely commence or

cause to be commenced, or fail to diligently prosecute to completion, such remedial work, Lessor may, but shall not be required to cause such remedial work to be performed. Lessee shall notify Lessor of any claim or other action by any governmental agency or other third party involving the actual or alleged existence of hazardous material on the Lessed Premises, and shall provide Lessor with copies of (1) any notice of any release of hazardous materials given to Lessee pursuant to any law or regulation, and (2) any report of and response to any such incident. Lessee agrees to provide such notices, reports or responses to Lessor and/or surface owner within ten (10) days after receipt or preparation of same by Lessee. D. Lessee agrees to indemnify, pay and protect, defend and save Lessor harmless from all claims, liabilities (including strict liability), fees and expenses of any kind that arise from the actual or alleged presence or release of any hazardous material in connection with Lessee's operations on Lessor's and/or surface owner's property unless caused by the gross negligence or willful misconduct of the Lessor and/or surface owner. This indemnification shall include costs in connection with any remedial work when performed by Lessor and/or surface owner or any third party in response to any federal, state or local governmental authority, laws or regulations, due and payable upon demand therefore by Lessor and/or surface owner. As used in this Subparagraph D "remedial work" is defined as any site investigation or monitoring, any cleanup, containment, remedial, removal, or restoration work performed in response to any federal, state or local government authority or pursuant to any federal, state or local statute, rule, regulation or other laws. E. The provisions of this Section 15 shall survive the termination or expiration of this Lesse in perpetuity.

16. General Provisions.

A. Lessee agrees, after cessation of its use of any water well drilled by Lessee on the Lessed Premises and prior to plugging or removing the casing therefrom, to tender such water well or wells to Lessor and/or surface owner and, if Lessor and/or surface owner shall elect to accept same, such water well and the casing therein shall be and become the property of Lessor and/or surface owner upon Lessor's and/or sufrac owner's payment to Lessee of the salvage value of the casing in such well; provided, however, that Lessee shall have the right to use such well or wells at any time during the conticiance of this Lesse in connection with any of Lessee's primary, but not secondary, production operations on the Lessed Premises and, provided further, that Lessor and/or surface owner shall thenceforth assume all risks and obligations attendant to Lessor's and/or surface owner's ownership and use of said water well or wells. B. Lessee agrees, with reference to each well drilled under this Lesse, to allow Lessor and/or surface owner, upon timely request, to run a Schlumberger or similar electrical logging survey from the surface of the ground to the total depth of the surface casing to be set in such well to determine the presence of water sands in such interval; Lessor to pay the cost of such Schlumberger or other electrical logging survey, and to pay the rig costs and assume the risks of the hole during the running of such logging survey. If such well drilled on the l.essed Premises is to be abandoned as a dry hole (either before or after production) prior to plugging and abandoning same, Lessee shall tender such well to Lessor and/or surface owner and, if Lessor and/or surface owner shall elect to accept such well, Lessor and/or surface owner and Lessee shall make application to the Railroad Commission of Texas to be authorized to plug such well in such manner that the well bore be left open to the depth at which the Lessor and/or surface owner shall intend to condition and equip such well bore for

production of fresh water, relieving Lessee of further liability. If such application is approved by the Railroad Commission of Texas, Lessee shall proceed to plug such well in the manner so authorized in accordance with such Rules and Regulations, and such well and the casing therein shall be turned over to Lessor and/or surface owner without payment of any consideration therefor. If Lessor and/or surface owner shall not desire to su acquire any such well, Lessee shall plug and abandon the same. Lessee agrees to plug all wells drilled on the Leased Premises, either as a dry hole or after production has ceased therefrom, in accordance with all the Rules and Regulations of the Railroad Commission of Texas as they exist at such time, however, if Lessor and/or surface owner shall accept or take over any well as aforesaid, Lessor and/or surface owner agrees and, if requested by Lessee, shall confirm such owner's agreement, at such owner's expense, (i) to comply with all laws, rules and regulations of governmental authority applicable to such well, including the operation and subsequent plugging and abandonment thereof, (ii) to indemnify and hold harmless Lessee from and against any and all claims resulting from or arising out of or in connection with operations of or for Lessor and/or surface owner on said well and from and against all costs and expenses incurred by Lessee by reason of any such claim or claims, (iii) to accept such well "as is" and "with all faults", and (iv) not to produce any all, gas or other minerals from such well. In the event Lessee or Lessor and/or surface owner, as appropriate, shall fail to refuse to plug any such well as above required, the other party shall have the right to do so at such failing or refusing party's expense and such failing or refusing party agrees to pay the other party for all monies expended in the plugging of such well, together with interest at the rate of fifteen $15\%$ ) per annum from the date of such expenditures. If such failing or refusing party shall fail or refuse to pay the other party for the cost of plugging such well or wells within thirty (30) days after demand is made therefor and if such claim is turned over to an altorney for collection, such failing or refusing party agrees to pay in addition a reasonable attorney's fee therefor. C. It is expressly provided that this Lesse does not cover or include any rights or privileges of hunting with firearms or dogs on the Leased Premises and no right to fish thereon, or the taking of game or fish in any manner; all such hunting and fishing rights being expressly reserved to the surface owner. Lessee agrees to instruct its agents, servants, employees and contractors not to bring any firearms or hunting equipment on the Leased Premises and not to hunt or fish thereon, or to take game or fish in any manner. If any such person or persons shall violate the provisions of this Subparagraph C, Lessee agrees to instruct such person or persons not to enter thereafter upon the Leased Premises and that, should they so enter, they shall then and thereafter be trespassers thereon and be subject to the ponulties of the trespass laws of the State of Texas. Lessee agrees to restrict its agents and employees from traveling on the Leased Premises except for official business, and then only to the areas required for Lessee's operations. D. Lessor shall have the right, personally or by representative, at Lessor's risk, and subject to the approval of the individual on the well location charged with the safety of the rig by execution of a liability release, to have access to the derrick floor with the right to observe all operations and the right to witness the taking of electrical logs and drill-stem tests: and Lessee agrees, upon Lessor's written request, to furnish Lessor with copies of all electrical logs within ninety ( 90 ) days after taking same and a copy of each well log within ninety ( 90 ) days after completion of each well drilled on the Leased Premises; and Lessee agrees to divulge to Lessor true and correct information as requested by Lessor as to such well and the production therefrom and such technical information as Lessee may acquire and which is readily available with respect to the sands and formations encountered in such well, unless such information is deemed by Lessee to be confidential for competitive reasons. Lessor agrees to keep confidential and not to divulge to any other person information given to Lessor by Lessee as herein provided until such information is released by Lessee

shall be fully performed and all payments due under this Lease shall be paid in La Salle County, Texas, or any other county designated by Lessor in writing hereafter. Whenever any instrument is required to be filed for record under the terms of this Lease, unless otherwise expressly provided, same shall be filed in the Office of the County Clerk(s) of the county or counties in which the land covered by this Lease is situated and at Lessee's cost, unless otherwise provided. All references in this Lease to "County Clerk" mean and refer to the County Clerk(s) of the county or counties in which the land covered by this Lease is situated. J. All reference to "Lessee" in this Lease shall mean, include and apply to the named Lessee and all parties claiming any interest or interests in the working interest. The masculine pronoun as used in this Lease shall include the feminine and neuter and vice versa and, when appropriate, the singular shall include the plural and vice versa. K. All references in this Lease to the Railroad Commission of Texas shall mean and include any other governmental authority, state or federal, having jurisdiction over the Leased Premises.

1. The captions used in this Lease are for convenience of reference only and do not limit or amplify the provisions hereof. M. The rights and duties of the parties under this Lease shall be governed by the laws of the State of Texas. The parties further agree that the District Court in and for the county or counties in which the Leased Premises are situated shall have jurisdiction and venue of any and all causes of action between the parties concerning this Lease, and Lessee hereby waives any right that it may have to remove any suit filed against it for damages or other actions hereunder to any Federal Court; but Lessee does not waive any right it may have to appeal any decision rendered against it to the Federal Courts, should such appeal properly lie. In the event any payments (but not including royalty and shut-in gas well royalty) herein required to be made by Lessee to Lessor not be made when due, the same shall bear interest at the rate of ten ( $10\%$ ) percent per annum from the date payment is due until paid and, if any payment required hereunder is in default and is turned over to an attomey for collection or if the same is collected by a suit, Lessee agrees to pay reasonable attomey's fee. N. Lessee shall have no right to erect or drill a salt water disposal well and/or to dispose of salt water on the Leased Premises without first obtaining the consent of Lessor. O. No well shall be drilled within 1,000 feet of any residence now located on the Leased Premises without first obtaining the consent of the surface owner, which consent shall not be unreasonably withheld. P. In the event the owner of the surface estate in the Leased Premises (the "surface owner") is not a Lessor, the surface owner shall be a third-party beneficiary of this Lease. Q. The payments provided for herein as compensation for damage to, or for the use of, the surface of the Leased Premises shall be made to the surface owner, and payments for damage to personal property situated on the Leased Premises shall be made to the owner of the personal property so damaged. The surface owner of the Leased Premises, her heirs, devisees, personal representatives and assigns, is the third-party beneficiary of all of the provisions of this Lease relating to the damage to, and the use of, such surface estate. The parties agree that the surface owner, her heirs, devisees,

personal representatives and assigns, shall have the right to enforce those provisions of this Lease Agreement pertaining to the surface estate without the consent of the surface owner.

17. Seismic Operations.

In conducting seismic operations on the Leased Premises, Lessee shall comply with the following covenants and agreements (in addition to the other applicable provisions of this Lease): A. Lessee shall enter the Leased Premises at locations designated by Lessor and/or surface owner. Exterior gates designated for entry shall be kept closed and locked at all times except when actually utilized for passage. Interior gates that are closed when encountered shall be closed when passage has been completed, and interior gates found open when encountered, shall be left open by Lessee. B. Lessee shall conduct its operations in a manner that shall minimize surface disturbance and damage. All seismic senderos opened on the Leased Premises shall be cut two dozer blades wide and shall be ter'aced along the slopes in such a manner as to protect against erosion and to maintain reasonable and appropriate surface drainage patterns. Trees and brush removed in the process of opening senderos shall be pushed and stacked into piles at intervals along the senderos and burned upon completion of such operations. No tree having a trunk diameter of four (4) inches or more shall be cut under any circumstances without the prior written consent of Lessor and/or surface owner, and Lessee's routes shall be deviated in order to avoid them. Lessor and/or surface owner agrees such consent shall not be unreasonably withheld. C. All vehicles shall be operated in a manner designated to minimize damage to the surface of the Leased Premises. In the conduct of seismic operations, all vehicles, including support vehicles, shall stay in one set of ruts (that is, follow the same path) to the extent necessary to prevent excessive damage to the surface. D. Trucks or other heavy equipment shall not be moved upon or utilized within the Leased Premises during periods of wet weather when such utilization or movement would result in creating ruts or other appreciable damage to the surface. E. In conducting its survey, Lessee shall not cut nor lay down any interior fence without first obtaining Lessor and/or surface owner's written consent. No perimeter fences shall be cut or laid down under any circumstances. F. Within thirty (30) days from completion of the survey, weather permitting, Lessee shall restore the surface of the Leased Premises to as near its original condition as may be reasonably practicable. Senderos may remain. G. In the conduct of its operations, Lessee shall keep the Leased Premises in a safe and clean condition and shall not scatter, or allow the scattering, of any type of waste, broken equipment, used cans or containers, but shall keep the Leased Premises free and clear of all of such refuge. All survey tags, ribbons and markers, and all receiver and source pin flags, stakes or markers utilized by Lessee in its operations shall be removed from the Leased Premises within fifteen (15) days following the completion of the survey, weather permitting.

H. Lessce shall compensate Lessor and/or surface owner for surface damages resulting from seismic surveys based on the prevailing rate being paid in the area at the time; provided, however, that the minimum payment for seismic lines shall be $\$3,500.00$ per mile for conventional seismic surveys, and $\$30.00$ per acre for 3-D seismic surveys. Such payment, however, shall not be deemed compensation for damage to the Leased Premises resulting from an unreasonable, extraordinary or negligent use of the Leased Premises, and Lessce agrees to pay Lessor and/or surface owner reasonable compensation for any such damage. Additionally, Lessce agrees to use reasonable care at all times in Lessce's operations on the Leased Premises to prevent injury or damage to livestock, buildings or other property of Lessor and/or surface owner situated on the surface of the Leased Premises, or water wells and surface reservoirs located thereon, and agrees to pay Lessor and/or surface owner for all damages to buildings, livestock, fences, water wells, surface reservoirs, and, without limitation, all other property of Lessor and/or surface owner situated on the surface of the Leased Premises resulting from Lessce's operations thereon. I. Lesses shall have no right to use water from Lessor and/or surface owner's wells, tanks or watering places without Lessor and/or surface owner's prior consent. J. Lesses shall not intentionally dump, spill or discharge gasoline, oil, hydraulic fluid, fuel, paint or any other foreign substance on the Leased Premises. Any accidental spill will be cleaned up immediately and reported to Lessor and/or surface owner. K. No seismic source points shall be conducted within 1,000 feet of any house or building on the Leased Premises without the written consent of Lessor and/or surface owner, which consent shall not be unreasonably withheld. No shot point shall be located within 500 feet of any water well on the Leased Premises without the written consent of Lessor and/or surface owner, which consent shall not be unreasonably withheld. Lesses shall test all water wells on the Leased Premises within 1,000 feet of each source line before conducting its operations and within 90 days after completion of its operations to insure that no damage has been committed to any water wells or to the quality of the water from the same. Lessce shall pay all costs associated with the testing, repair or replacement of any water wells damages as a result of its operations. L. Lesses may leave on the Leased Premises overnight those trucks and equipment necessary to conduct its operations. On all occasions when such trucks and equipment are left on the Leased Premises overnight, Lessee, as its sole and absolute responsibility, shall secure such trucks and equipment. At all times while on the Leased Premises Lessee shall solely be responsible for any and all damage caused to any of its trucks and equipment whether or not left on the Leased Premises overnight. Lessor and/or surface owner shall in no way be held liable or responsible for any damage caused at any time to any of Lessee's trucks or equipment, or for loss of any of Lessee's personal property brought onto the Leased Premises. M. At any reasonable time after this Lease has terminated in whole or in part, Lesses agrees to make available to Lessor and/or Lessor's consultants, without cost, the following:

With respect to conventional seismic surveys, Mylar sepia and Blackline print of the surveyor's Tobin Map, shot-point base map, and processed cross sections (both migrated and non-migrated) and a copy of "Final Stack" information, together with a copy of all seismic types for each seismic line crossing the Leased Premises, with reasonable tails in each instance so as to provide full fold coverage of the Leased Premises. The obligation to supply such information is contingent

upon the availability of full fold data. With respect to 3-D seismic surveys, all seismic data interpretable on a seismic computer work station resulting from the survey insofar as it relates to the Leased Premises, and a black line print of every 10 th full fold in line final processed section and shot point base map of that portion of the survey which crosses the Leased Premises, with reasonable tails in both instances so as to provide full fold coverage of the Leased Premises.

Prior to making the seismic data available to Lessor or consultant, the Lessor or consultant shall enter into a data use license and confidentiality agreement, requiring that the seismic data be maintained as confidentid and not be sold, traded, loaned, copied, disclosed, distributed, transferred, or otherwise made available to other parties. Lessor and Lessor's consultants, shall have the right to utilize such data in evaluating oil and gas prospects on the Leased Premises, and Lessor may show the data subject to the terms of the data use license agreement, to any third party or parties with whom Lessor proposes to conduct good faith negotiations at arms-length with respect to developing an oil and gas prospect. Notwithstanding the above, Lessor may not show such data to third parties insofar as the data relates to that portion of the Leased Premises then subject to this Lease. Lessors use of the data, in the manner specified herein, shall be at Lessors sole risk and expense, and Lessee makes no guarantee as to the accuracy of the seismic data and disclaims all implied warranties including fitness for a particular purpose and merchantability.

18. Force Maioure.

In the event compliance with any express or implied covenant in this Lease or the commencement of drilling or reworking operations or actual drilling, reworking or producing operations by Lessee on the Leased Premises are prevented, delayed or interrupted by war, flood, or other acts of God or of the public enemy, or as a result of scurnity of or the inability of Lessee to procure, obtain or use casing or other equipment or material or the services of a drilling or other contractor to drill, rework, complete or produce said well or wells; or as the result of the inability of Lessee to procure permit to conduct such operations; or as the result of any law, order, rule or regulation of the Railroad Commission of Texas or other governmental authority, State or Federal; it is agreed that, upon Lessee's giving notice to Lessor and reasonably full particulars in writing or by facsimile or electronic mail of the cause of such delay, prevention or interruption within a reasonable time after the occurrence of the cause relied upon; then the time for the commencement of drilling of such well, or the actual drilling thereof or production therefrom, shall be suspended during the continuance of the inability so caused, and for a period of sixty ( 60 ) days thereafter, but for no longer period, and the limitations provisions herein provided shall be extended accordingly; provided that this provision shall not suspend nor delay the time for the payment of shut-in gas well royalty or any other payments or royalties payable under the provisions of this Lease.

19. Warranty of Title.

This Lease is made by Lessor and accepted by Lessee without warranty of title of any kind, either express or implied. Lessee may, at Lessee's option, discharge any tax, mortgage or other lien upon the mineral interest covered hereby, either in whole or in part, and in the event Lessee does so, Lessee shall be subrogated to such lien with the right to enforce same and apply royalties accruing to such party hereunder towards satisfying same. Lessee, prior to discharging any tax, mortgage or other lien upon any such mineral interest shall give notice of same to Lessor and if Lessor objects to the

discharge of such lien because they are in good faith disputing the same and if Lessor satisfies Lessoe that is reasonably adequate provision has been made for the payment or discharge of same, Lessco shall not have the right to make any payment discharging said lien. Without impaimnent of Lessec's right under the warranty in event of failure of title, it is agreed that if any of the above-named parties owns a mineral interest in the Leased Premises less than the entire fee simple estate, then the shut-in gas royalties, royalties, and other like payments for production or in lieu of production, to be paid to such party shall be reduced proportionatoty.

20. Counterpart.

This instrument may be executed in multiple counterparts and each of which as so executed shall be given the effect of the execution of an original instrument. Such executed counterparts may be consolidated into a single instrument by combining the signature pages and acknowledgments thereto und the executing parties hereto acknowledge and agree that such instrument shall be treated and given effect for all purposes as a single instrument.

21. Memorandum of Lease.

The parties hereto agree to execute a Memorandum of this Lease for recording purposes. IN WITNESS WHEREOF, this instrument is executed in duplicate originals on the date set forth in the acknowledgements of this Lease, but shall be effective for all purposes as of December 1, 2009.

LESSOR:

22. MECKEY DARRELL SNOWDEN

23. MECKEY DARRELL SNOWDEN KARDELL.

24. MARY DELLLLA SNOWDEN, by Patricia J.

Snowden Kardel, Attorney-In-Fact under Power of Attorney

LESSEE:

SWIFT ENERGY OPERATING, LLC, A Texas Limited Liability Company

By:
James F. Mitchell, Sr., Vice President, Commercial Transactions and Land

THE STATE OF TEXAS COUNTY OF LA SALLE $\S$ and

COUNTY OF DIMMIT $\S$ This instrument was acknowledged before me on the day of December, 2009, by MAKtIN MURPHY SNOWDEN.

Notary Public, State of Texas

THE STATE OF TEXAS COUNTY OF LA SALLE and

COUNTY OF DIMMET is

This instrument was acknowledged before me on the 2nd day of December, 2009, by MICKEY DARRELL SNOWDEN.

Vocab
28

Notary Public, State of Texas

THE STATE OF TEXAS COUNTY OF LA SALLE and

COUNTY OF DIMMET

is

This instrument was acknowledged before me on the 2nd day of December, 2009, by PATRICIA J. SNOWDEN KARDELL.

Vocab
31

Notary Public, State of Texas

THE STATE OF TEXAS

COUNTY OF LA SALLE

and

COUNTY OF DIMMIT 9

This instrument was acknowledged before me on the day of December, 2009, by PATRICIA J. SNOWDEN KARDELL, as attorney-in-fact on behalf of MARY DELILLA SNOWDEN.

V.
n

BEFORE ME, on this day of December 2009, appeared James P. Mitchell, to me personally known, who being by me duly sworn, did say that he is Senior Vice President, Commercial Transactions and Land of SWIFT ENERGY OPERATING, LLC, a Texas limited liability company, and that said instrument was signed on behalf of said limited liability company by authority of its Board of Managers and that he executed the instrument for the purposes and consideration expressed therein, and he acknowledged this instrument as the free act and dead of said limited liability company.

C. If during any year (commencing with an anniversary date of this Lease) while this Lease is in force, oil or gas shall be produced from any well on the Leased Premises, and there has not been paid or accrued hereunder to Lessor at least the sum of Fifty and No/100 Dollars ( $\$50.00$ ) per net acre during that year for each acre contained within the gas or oil production unit for such well(s) at the commencement of such year, by way of shut-in gas well royalty and/or royalties paid or then accrued, Lessee shall, within ninety ( 90 ) days after the end of such lease year, pay or tender to Lessor, as a minimum annual royalty, the difference between the amount per acre so paid or accrued during such lease year and said sum of Fifty and No/100 Dollars ( $\$50.00$ ) per acre contained within the gas or oil production unit for such well(s). The payment of minimum annual royalty provided for in this Subparagraph 4 (C.) shall not be in lieu of actual production of oil or gas in paying quantities and Lessee shall not be entitled to continue this Lease in force by payment of such minimum royalty if, in fact, the actual production of oil or gas is not in paying quantities. It is provided, however, that nothing in this Subparagraph 4 (C.) contained shall be construed as preventing or delaying the termination of this Lease under the provisions of Section 8 hereof, nor as impairing Lessee's continuing obligation to reasonably develop and explore the Leased Premises after the discovery of oil or gas thereon in paying quantities, nor as in any manner impairing Lessee's continuing obligations to protect the Leased Premises from drainage by wells on adjoining or adjacent lands, as provided in Section 10 hereof.

5. No Delay Rentals: Paid-un Lease:

The payment or tender of shut-in royalty under Section 4 may be made by the check or draft of Lessee mailed or delivered to the parties entitled thereto at the address herein before specified, and shall not be considered "delay rentals." The cash bonus payment paid in advance in consideration for this Lease is full consideration for such delay rentals. Leasee may at any time execute and deliver to Lessor, and place of record, a release or releases covering any portion or portions of the above described premises and thereby surrender this Lease as to such portion or portions and be relieved of all subsequently accruing obligations for shut-in-royalty as to the acreage surrendered (but not as to obligations which have theretofore accrued).

6. Punding:

Lessee, at its option, is hereby given the right and power to pool or combine the acreage covered by this Lease, insofar only as gas or gas condenaate rights are concerned, with other land, lease or leases in the immediate vicinity thereof, and to the extent and in the manner hereinafter stipulated, the right to pool or combine the Leased Premises as to gas being subject to the following: A. As used in this Section 6 the following definitions shall apply: The term "on-premise well" means a gas well located on or completed under the land covered by this Lease; and the term "off-premise well" means a gas well located on and completed under land not covered by this Lease. B. Until all of the land originally covered by this Lease is included in gas pooled units for on-premise wells, Lessee shall have no right or power without Lessor's prior written consent to pool or combine any of the land covered by this Lease for an on-premise well unless all of the remaining non-unitized lease acreage is included in the unit. C. Not less than one-half (1/2) of any unit formed for gas shall be comprised of lands

covered by this Lease for an off-premise well, and Leases shall have no right or power to pool or combine any of the land covered by this Lease for an off-premise well unless at least one-half ( $1/2$ ) of the unit acreage shall be comprised of lands covered by this Lease and included in such unit. D. Subject to the other provisions of this Section 6, Leasee may pool or combine the acreage covered by this Lease in order to create a gas unit or units containing not more that 160 acres, if pooled as to any or all horizons between the surface of the land and the depth of 6,000 feet below the surface (shallow gas unit); and/or (ii) a gas unit or units containing not more than 320 acres of land if pooled as to any or all horizons between the depth of 6,000 feet below the surface of the land and the depth of 8,500 feet below the surface (intermediate gas unit); and/or a gas unit or units containing not more than 640 acres, if pooled as to any or all horizons greater than 8,500 feet below the surface of the land (deep gas unit). If at the time of creation of any such gas unit special Field Rules of the Railroad Commission of Texas applicable to the Leased Premises provide for spacing on the basis of less than 160 acres for units pooled as to any or all horizons less than 6,000 feet below the surface or less than 320 acres for units pooled as to any or all horizons lying between 6,000 feet below the surface of the land and a depth of 8,500 feet below the surface or less than 640 acres for units pooled as to any or all horizons greater than 8,500 feet below the surface; then the Leased Premises, or portion or portions thereof, may only be so pooled in order to create a unit or units in compliance with such rules and regulations; but in no event shall any such unit contain more than 160 acres if pooled as to any or all horizons less than 6,000 feet below the surface, nor shall any such unit contain more than 320 acres, if pooled as to any and all horizons lying below 6,000 feet below the surface of the land and a depth of 8,500 feet below the surface, nor shall any such unit contain more than 640 acres, plus ten ( $10\%$ ) porcent tolerance if pooled as to any or all horizons greater than 8,500 feet below the surface. E. Any such gas unit shall be in a reasonably compact shape unbroken by any tract or tracts not included in the unit, except for unleased fee-highway strips or unleased state-owned riverbed. Such gas pooled units may cover any one or more stratum or strata, and units formed by pooling as to any stratum or strata need not conform in size or area with the unit or units in which the Leased Premises may be pooled or combined as to any other stratum or strata. All of the provisions of this Section 6 shall be separately applicable to unit or units into which the Leased Premises may be pooled or combined as to stratum or strata which are separately identified in unit designation instruments. Leasee shall execute in writing an instrument or instruments identifying and describing the land comprising the unit, shall file same for record and, within a reasonable time thereafter, shall furnish an executed copy thereof to Leasor. Each of said options may be exercised by Leasee from time to time, whether before or after production has been established, either on the land covered by this Lease or on other land pooled therewith. A unit established hereunder shall be valid and effective for all purposes of this Lease even though there may be mineral, royalty or leaschold interests in land within the unit which are not effectively pooled or unitized. After production of gas or gas condensate is had from the pooled unit, the size or area of the pooled unit shall not be enlarged, and the acreage covered by this Lease and included in such unit may not be removed therefinn without Leasor's express consent in writing. In the event of operations for drilling on or production of gas from any part of a pooled unit which includes all of a portion of the land covered by this Lease, regardless of whether such operations for drilling were commenced or such production was secured before or after the execution of this Lease or the instrument designating the pooled unit, such operations shall be considered as operations for drilling on or production of gas from land covered by this Lease, whether or not the well or wells be located on the premises covered by this Lease; in such event, operations for drilling shall be deemed to have been commenced on said land within the meaning of Section 8 of this Lease and the entire acreage constituting such unit or units as to gas as herein provided shall be treated

for all purposes, except the payment of royalties on production from the pooled unit, as if the same were included in this Lease. For the purposes of computing the royalties to which owners of royalties shall be entitled on production of gas and gas condensate from each gas unit, there shall be allocated to the lands covered by this Lease and included in such gas unit a pro rata portion of the gas and gas condensate produced from the pooled unit, after deducting that used for operations on the pooled unit. Such allocation shall be on an acreage basis; that is to say, there shall be allocated to the acreage covered by this Lease that pro rata portion of the gas and gas condensate produced from the pooled unit which the number of surface acres covered by this Lease and included in the pooled unit bears to the total number of surface acres included in the pooled unit, commencing with the date of first production from the pooled unit; that is, royalties shall be paid on the acreage covered by this Lease and included in the pooled unit from the date of first production from the pooled unit, whether or not the land covered by this Lease was included in the pooled unit at the date of first production or thereafter. Royalties on such portion of the production from off-premise well or wells so allocated to this Lease shall be handled, computed and paid in accordance with the terms and provisions of this Lease, just as though such production were had from on-premise well or wells on the portion or portions of this Lease so included in such unit. Lessec agrees to reasonably develop and protect from drainage any unit created hereunder, to the same extent as Lessee is obligated under the terms and provisions of this Lease as to the acreage covered hereby. Lessee shall not be liable to any party for reduction of the acreage content of any unit from loss or failure of title or from any other cause beyond Lessee's control, nor shall Lessee be obligated to make any retroactive apportionment of royalty on sums paid on production in the event of any such reduction in acreage content. It is expressly understood and provided that the pooling permitted under this Lease is limited to the pooling of gas and gas condensate. Lessee shall not have the right to pool any of the oil or casinghead gas in, or under the Leased Premises; and any attempt to pool oil or casinghead gas shall have no force or effect whatever. Whenever the entire production of gas and condensate from any such gas pooled unit shall have terminated and all gas wells thereun have been plugged and abandoned, such unit may be terminated by Lessee by written instrument evidencing such termination filed for record. F. If this Lease now covers separate tracts, no pooling, unitization or communication of mineral or royalty interests as between any such separate tracts is intended or shall be implied or result from the inclusion of such separate tracts within this Lease, and the rule of non-apportionment shall be applicable to this Lease and to all lands covered by this Lease; but Lessee shall nevertheless have the right to pool Lessor's interest in any separate tract or tracts, as provided in this Section 6, with consequent allocation of production as herein provided. The inclusion of Lessor's interest in any separate tract within this Lease shall not constitute an offer on the part of Lessor to any party who may now or hereafter have an ownership interest in the minerals or royalties in any such separate tract to pool, unitize or communitize any such interest with other interests covered by this Lease, and with respect to Lessor's interests in said lands, or in any separate tract, and any other party's interest in said lands, or in any separate tract, such interests shall remain separate ownerships with neither party having any rights, interests or ownership whatsoever in the rights, interests or ownership of the other. Any attempt by an owner of any mineral or royalty interest under a separate tract, now or hereafter, to ratify, adopt or confirm this Lease, or any provision herein contained, by any means and thereby effect a pooling, unitization or communication of any separate tract covered by this Lease with any other interests shall by such action specifically ratify, adopt and confirm the entire contents of this Subparagraph 6.F. and such attempt to effect a pooling, unitization or communication shall be ineffectiva, null and void for all purposes. As used in this Subparagraph 6.F. the words "separate tract" mean any tract with mineral or royalty ownership differing, now or hereafter, either as to parties or amounts, from that as to any other part of the lands covered by this Lease.

G. If a well is classified as a horizontal well (whother oil or gas) under the Rules and Regulations of the Railroad Commission of Texas then in effect, then the maximum size of the production unit shall not exceed in area 640 acres, plus a tolerance of ten percent ( $10\%$ ) thereof, provided that should governmental authority having jurisdiction prescribe or permit the creation of units larger than those specified, for the drilling or operation of a well at a regular location, or for obtaining maximum allowable from any well to be drilled, drilling or already drilled, units thereafter may conform in size with those prescribed or permitted by governmental regulations. II. Notwithstanding anything contained in this Paragraph 6. to the contrary, Lessee shall have the right or power to pool or combine the acreage covered by this Lease with the adjacent real property to the south of the Leased Premises owned by Gary L. Otto described as 430 acres, more or less, out of the J.V. Massey Survey No. 147, Abstract No. 746, La Salle County, Texas.

7. Cessation of Production.

If, during the primary term and prior to the discovery of oil or gas on said Land, Lessee shall drill a dry hole thereon, or if, after the discovery of oil or gas during the primary term the production shall cease during the said term from any cause, no operations are necessary in order to keep this Lease in force during the remainder of the primary term.

8. Partial Termination Units for Production.

A. If at the expiration of the primary term Lessee is not engaged in the actual drilling of a well on the Leased Premises or if Lessee shall have completed or abandoned a well on the Leased Premises within the ninety ( 90 ) day period prior to the expiration of the primary term, then if Lessee is not engaged in the actual drilling of a well on the Leased Premises at the expiration of ninety ( 90 ) days after the date of completion or abandonment of such well, whichever event shall be applicable, this Lease shall then terminate as to all the acreage covered hereby, SAVE and EXCEPT, as follows: (1) As to each well situated on the Leased Premises producing or capable of producing oil in paying quantities or being reworked and classified as an oil well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval between the surface of the land and the depth of 10,000 feet below the surface, together with 40 acres around each such well, in the shape hereinafter provided. Each such oil well and the 40 acre tract surrounding same shall constitute and is hereby defined for all purposes of this Lease as a "shallow oil unit". (2) As to each well situated on the Leased Premises producing or capable of producing oil in paying quantities or being reworked and classified as an oil well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval greater than 10,000 feet below the surface of the land, together with 80 acres around each such well, in the shape hereinafter provided. Each such oil well and the 80 acre tract surrounding same shall constitute and is here defined for all purposes of this Lease as a "deep oil unit". (3) As to each well producing gas in paying quantities (or capable of producing gas in paying quantities with all shut-in gas well royalty having been paid thereon) or being reworked and classified as a gas well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval between the surface of the land and the depth of 6,000 feet below the

surface, together with 160 acres surrounding each such gas well, or such portion of the land covered by this Lease which shall have been included in a gas pooled unit under the provisions of Section 6 hereof. Each such gas well and the tract surrounding same, as herein prescribed, shall constitute and be referred to as "shallow gas unit". (4) As to each well producing gas in paying quantities (or capable of producing gas in paying quantities with all shut-in gas well royalty having been paid thereon) or being reworked and classified as a gas well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval between the depth of 6,000 feet below the surface of the land and the depth of 8,500 feet below the surface, together with 320 acres surrounding each such gas well, or such portion of the land covered by this Lease which shall have been included in a gas pooled unit under the provisions of Section 6 hereof. Each such gas well and the tract surrounding same, as herein prescribed, shall constitute and be referred to as "intermediate gas unit". (5) As to each well producing gas in paying quantities (or capable of producing gas in paying quantities with all shut-in gas well royalty having been paid thereon) or being reworked, and classified as a gas well under the Rules and Regulations of the Railroad Commission of Texas, and producing from any interval greater than 8,500 feet below the surface of the land together with 640 acres, plus ten ( $10\%$ ) percent tolerance, surrounding each such gas well, or such portion of the land covered by this Lease which shall have been included in a gas pooled unit under the provisions of Section 6 hereof. Each gas well and the tract surrounding same, as herein prescribed, shall constitute and be referred to as "deep gas unit". (6) As to cach horizontal well situated on said lands producing oil or gas in paying quantities (if a gas well, a well capable of producing gas in paying quantities with all shut-in payments having been paid thereon), together with the number of acres prescribed or permitted by field or statewide rules of the Railroad Commission of Texas to be assigned to such well for drilling or operating at a regular location or for obtaining the maximum allowable therefrom, but in no event greater than 640 acres, plus a tolerance of ten $(10\%)$ percent thereof, or as may thereafter be permitted by governmental regulations.

Each such tract around each such well shall be in as nearly a square or rectangular shape as practicable within the configuration of the outer boundaries of the Leased Premises. B. If at the expiration of the primary term or at any time within the ninety ( 90 ) day period prior to the expiration of the primary term, Lessee is then engaged in the actual drilling or reworking of a well on the Leased Premises or if Lessee shall have completed or abandoned a well on the Leased Premises within the ninety ( 90 ) day period prior to the expiration of the primary term, then if Lessee is engaged in the actual drilling or reworking of a well on the leased Premises at the expiration of ninety ( 90 ) days after the later of completion or abandonment of such well, whichever event shall be applicable, this Lease shall not terminate so long as Lessee shall pursue the drilling or reworking of such well with reasonable diligence to completion or abandonment and so long as Lessee shall commence the actual drilling of additional and successive wells on the Leased Premises at the following intervals: (i) not more than one hundred twenty (120) days shall clapsu following completion of one well on the Leased Premises, as a producer or dry hole, and commencement of actual drilling of the next well on the Leased Premises, if the last previous well on the Leased Premises has been drilled to a depth not more than 11,000 feet below the surface; and (ii) not more

than one hundred eighty (180) days shall elapse following completion of one well on the Leased Premises, as a producer or dry hole, and commencement of actual drilling of the next well on the Leased Premises, if the last previous well on the Leased Premises has been drilled to a depth greater than 11,000 feet below the surface. If and when Lessee shall fall to commence the actual drilling of any such wells above provided at the intervals above provided (or within the extended time as may be provided in Subparagraph E., below), then notwithstanding any other terms and provisions of this Lease to the contrary, it is expressly provided that this Lease shall then terminate promptly upon such failure as to all the acreage covered hereby, SAVE and EXCEPT as to the shallow oil units, deep oil units, shallow gas units, intermediate gas units and deep gas units and horizontal units, as above provided, and this Lease shall also terminate in depth, as provided in Subparagraph K., below. C. The actual drilling of a well as such words "actual drilling" are used in this Lease, shall be considered to be commenced when there have been erected on the Leased Premises at the location for such well, a derrick, a rig and machinery capable of drilling to a depth sufficient to test a prospective oil or gas horizon on the Leased Premises, and when such well shall be "spuided-in" and rotating under power. Whenever the provisions of this Lease refer to "commence" or "commencement" of a well, it is intended to mean the commencement of the actual drilling of such well. For purposes hereof, the date of completion of a well shall be twenty (20) days following the last to occur of (i) perforation of the production casing and/or liner, (ii) completion of all artificial stimulation such as said treatment, tracing or swabbing, and (iii) completion of all other "completion operations" that a reasonable operator would use and employ in a good faith effort to obtain production from such well; provided, however, if thirty (30) days shall elapse between the cessation of any such completion operation and the resumption thereof or the commencement of a new completion operation, the well shall be deemed to have been completed at the expiration of said thirty (30) day period. The date of abandonment of a dry hole shall be the date indicated on the Railroad Commission of Texas Plugging Report for such well or ten (10) days after the release of the rig from such location after testing, whichever is earlier. "Reworking operations" as that term is used in this Lease shall mean reentry into a well previously completed as a producer, and actual work in the hole, in a good and workmanlike manner and prosecuted with reasonable diligence. D. Each well drilled under the provisions of this Section 8 after production is discovered on the Leased Premises shall be drilled with reasonable diligence and in a good and workmanlike manner in a bona fide attempt to produce oil or gas therafrom. K. It is further provided that if Lessee shall, in the conduct of drilling operations hereunder after the expiration of the primary term, commence the actual drilling of any next succeeding well within less than the time interval specified for same in the provisions of Subparagraph B., above, and thus speeds up the development of the Leased Premises, Lessee shall have the credit in time for such accelerated development and Lessee may subsequently in the conduct of drilling operations take advantage of such credit in time on a cumulative basis, and thus extend the time for the commencement of the actual drilling of any subsequent well or wells required to be drilled under the terms of this Section 8 in order to prevent a termination of this Lease in accordance with the terms and provisions hereof and the limitation provisions hereof shall be extended accordingly. Lessee shall notify Lessor within thirty (30) days after the occurence thereof, in writing, of the date of commencement of the actual drilling of each well and also of the time credit claimed by Lessee, if any, in connection with each succeeding well. If Lessee shall fail to so notify Lessor as above provided, Lessee shall not be entitled to any credit in time for accelerated development as provided herein. The foregoing provisions with respect to accumulation of time assumes that only one well will be drilled at

EXECUTED DIVISION ORDERS (SWIFT ENERGY PRODUCTION)

Division Order Date: December 16, 2011

| Lola Mae Minson Akers | Decimal Interest | .01250000
$(1/2\times 1/5\times 1/8)$ | | :--: | :--: | :--: | | Pamela Boss | Decimal Interest | .00312500
$(1/2\times 1/4\times 1/5\times 1/8)$ | | Dean Edward Burkett (Life Estate) | Decimal Interest | .00208334
$(1/3\times 1/4\times 1/5\times 1/8)$ | | Brian Hunter | Decimal Interest | .00208333
$(1/3\times 1/4\times 1/5\times 1/8)$ | | Jenny May Woodall Lawrence | Decimal Interest | .00078125
$(1/8\times 1/4\times 1/5\times 1/8)$ | | Malydalyn Jones Mitchell | Decimal Interest | .00625000
$(1/4\times 1/5\times 1/8)$ | | Lourene Yvonne Woodall Vance | Decimal Interest | .00078125
$(1/8\times 1/4\times 1/5\times 1/8)$ | | Sharon L. Williams | Decimal Interest | .00312500
$(1/2\times 1/4\times 1/5\times 1/8)$ | | Francis Madison Woodall | Decimal Interest | .00156250
$(1/4\times 1/4\times 1/5\times 1/8)$ | | Johnny Lee Woodall | Decimal Interest | .00078125
$(1/8\times 1/4\times 1/5\times 1/8)$ |

Transfer Order / Division of Interest Schedule Date: August 13, 2012

Jenny M. Lawrence Decimal Interest .00078125 (Transferor: Patricia Elma Childress Ward Cogovan) Jenny M. Lawrence Decimal Interest .00078125 (Transferor: Brandy Cannon fka Brandy Yvonne Childress)

Stipulation of Non-Participating Royalty Interest

Brian Hunter $1/3$ of $1/4$ of $1/5$ of $1/8$

DIVISION ORDER

44853
1/3/2012.32
Recerim

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

421018835

Property Number: Snowden EF 1H Operator: Swith Energy Operating, LLC County and State: 2,137.975 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1809, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486 Dimmit County, Texas

Owner Name: Lola Mae Minson Akers 407 Tult Avo. Talt, TX 78390

Owner Number: 14253
Type of Interest: NPRI
Decimal Interest: 01250000
$(1/2\times 1/5\times 1/8)$

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached herelo and made a part hereof.

Swift Energy Operating, LLC ('Swift') shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to witholdd payment without interest, unless otherwise required by applicable statute, pering resolution of a tille dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to altorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lowsult affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may cccur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amand any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have written Stablibly rights under the laws of the state in which the property is located.

Owner Signature: Owner Address:

Owner Tax ID/SS No. Owner Home Phone: Owner Email:

Date: December 16, 2011

Land Administration

Effective Date: First Production (October 1, 2011)

1961

| 400.46 .5043 | | :-- | | 1961.528 .3772 |

Owner Work Phone:

DIVISION ORDER

Received

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Property Number: Property Name: Operator: County and State: Property Description:

Land Administration Effective Date: First Production

Snowden EF 1 H (October 1, 2011) Sowlt Energy Operating, LLC La Salle and Dimmit Counties, Texas 2,137.979 acres of land, more or less, our of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas

Owner Name: Pamela Boss

4189 Summit Way Marietta, GA 30056

| Owner Number: | 14255 | | :-- | :-- | | Type of Interest: | NPRI | | Decimal Interest: | .00312500 |

$(1/2\times 1/4\times 1/5\times 1/8)$

The undersigned certifies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached hereto and made a part hereof.

Swift Energy Operating. LLC ("Swift") shall be notified, in writing, of any change in ownership, decimal interest, or payment address; including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withoutd payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to attorney fees or juzgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

Owner Signature.

Federat Law requires you to furnish your Social Security or Taxpayer identification Number. Failure to comply will result in $28\%$ withholding and will not be refundable by Swift.

DIVISION ORDER

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77050

Property Number: Property Name: Operator: County and State: Property Description:

421018835 Snowden EF 1 H Swift Energy Operating, LLC La Salle and Dimmit Countios, Texas 2,137.979 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 142, Abstract No. 1486, Dimmit County, Texas

Owner Name: Dean Edward Burkett (Life Estate) 4400 Blue Ridge Belton, TX 76513

Owner Number: Type of Interest: Decimal interest: $(1/3\times 1/4\times 1/5\times 1/8)$

14257 NPR 00208334 $(1/3\times 1/4\times 1/5\times 1/8)$

The undersigned certilies it is the owner of the decimal interest in production of proceeds as set out on the Division of Interest Schedule attached hereto and made a part hereof.

Swift Energy Opcrating, LLC ("Swift") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to attorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in.writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operalor or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

Owner Signature

Owner Address:

Owner Tax ID/SS No. Owner Home Phone Owner Email:

Federal Law requires you to furnish your Social Security or Taxpayer identification Number. Failure to comply will result in $28\%$ withholding and will not be refucidable by Swift.

SWIFT ENERGY OPERATING, LI. (iaceivec AUTIOIIZATIONIOR FLLL THOONO HOTS TRANSFER PAYMINT

I:at lincest (iower So.il lincrgy (perating, I.I.C is pleased to offer elecrnnie depns. This will provide you with the option pithopodminisicaditiond dircally into your bank The processing of this application may take up in thirty (30) days.

I"t come the security of your payments. Smitl lincrgy will be utilizing the Annotated Clearing House (ACII) system To be certain we are equally placed at no disadvantage due to mail delivery time and book-clearing time, the ACII crtuit in available funds will be received into your account three (3) business days after the check would have been placed in the mail. Gredins due on a non-business day will be received the next business day.

Pursent detail will be furnished by US Mail in the same format as now being recerved with your check

Direct Deposit Enrollment Form

1. Identify this form as a:

Check box if you wish to change the address correctly on file with the address listed above. 3. Please provide the correct AIIA/routing number and account number for your financial institution.

Pinnacle Insisition Rane

I 4. Sign authorization and date form below:

I anthorize Swift Energy Operating. I.I.C and the finmocid instintion listed on the information provided to electronically deposit my payment to the account specified. This audontity will remain in effect until I have fitted a new authorization. I understand that I can change my account or financial institution anzugement simply by filling a new authorization. If you are signing an behalf of a corporation, partnership, trust, etc., include your title as signing authority.

Date:

1. Mail completed enrollment form to: $\to$ SWIFT ENERGY OPERATING, I. I.C. 16825 Northchase Dr. Suite 400. Houston, TX 77060

2. Attention. Owner Relations Depoiment

PLEASE ATTACH A VOIDED CHECK FOR THE ACCOUNT TO WHICH PAYMENTS WILL BE DEPOSITED

Questions concerning Direct Deposit Form - Picase call Swift Energy Oretor Relations Depoiment 281-874-2606 or email to www.sgpe.ifenergy.roon.

DIVISION ORDER

| To: | Swift Energy Operating, LLC
18825 Northchase Drive, Suite 400 Houston, TX 77050 | Date: December 16, 2011 | | :--: | :--: | :--: | | Property Number: | 421018835 | Effective Date: First Production | | Property Name: | Snowden EF 1H | (October 1, 2011) | | Operator: | Swift Energy Operating, LLC | | | County and State: | La Salle and Dimmit Counties, Texas | | | Property Description: | 2,137.979 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas | | | Owner Name: | Brian Hunter | Owner Number: | 14259 | | | 9910 E. ${99}^{\text{th}}$ Street | Type of Interest: | NPR! | | | Tulsa, OK 74133 | Decinal Interest: | .00208333 | | | | $(1/3\times 1/4\times 1/5\times 1/8)$ | |

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached hereto and made a part hereof.

Swift Energy Operating, LLC ("Swift") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims assented regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to attorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever muy occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the statelin which the property is located

Owner Signature: Owner Address:

Owner Tax ID/SS No Owner Home Phone. Owner Email

Recoived $45.7-51-9100$ 45.7 - 51-9100

315 - $575-3658$ 815 - $975-3658$

Owner Work Fnone: 1915 - 355-3658 bhunter D trabe com

Hunter, Brian

Federal Law requires you to furnish your Social Security or Taxpayer Identification Number. Failure to comply will result in $28\%$ withholding and will not be refundable by Swift.

DIVISION ORDER
Received

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Ait ${2180}^{\circ }$

Date: December 16, 2011

Housion, TX 77690

Property Number: Property Name: Operator: County and State: Property Description:

421018835 Land Administration Snowden EF 1 H Swift Energy Operating, LLC La Salle and Dimmit Counties, Texas 2,137.979 acres of land, more or less, out of tho T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 745; and the Wm. Clary Survey No. 138, Abstract No 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas

Owner Name: Jenny May Woodall Lawrence 248 County Road 648 Dayton, TX 77535

Owner Number:

Type of Interest: NPR: Decimal Interest: ( $1/8\times 1/4\times 1/5\times 1/8$ )

The undersigned certifles it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached hereto and made a part hereof.

Swift Energy Operating, LLC ("Swith") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change

Swift is authorized to withhold payment without interest, unless otherwise required by applicable slalute, pending resolution of a title dispute or adverse claims assorted regarding the interest in production claimed herein by the undersigned The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to altorney loss or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$105.00$ or more. Chacks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amendfany lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the propertiyis located.

| Owner Signature | | | | :--: | :--: | :--: | | Owner Address: | | | | Owner Tax ID/SS No. | | | | Owner Horns Phone | | | | Owner Email: | | saluberetrace small. com $6-23-2$ | | Feiferal Law requires you to turnish your Social Security or Taxpayer Identification Number. Failure to comply will result in $38\%$ würtholding and will not be returnable by Swift. | | |

DIVISION ORDER

Recered

To: Switt Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Property Number:

Property Name: Operator: County and State: Property Description:

421018835

Snowden EF 1 H Swift Energy Operating, LLC La Salle and Dimmit Counties, Texas 2.137.979 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 748; and the Wm. Clary Survey No. 138, Abstract 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1488, Dimmit County, Texas

Owner Name: Malydalyn Jones Mitchell

113 County Road 1112 Pearsall, TX 78061

14254

Type of Interest: NPR Declinal Interest: 00625000 $(1/4\times 1/5\times 1/8)$

The undersigned cerifies it is the owner of the decinal interest in production or proceeds as set out on the Division of Interest Schedule attuched hereto and made a part nerwol.

Swift Energy Operating, LLC ("Swith") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following recopt of such notice which shall include documents satisfactonily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnity and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to altorney loss or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affocling the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

Owner Signature: Owner Address:

Owner Tax ID/SS No. Owner Home Phone: Owner Email:

113 E R 11125

Pearsall, TX 78061

1426-38-0813

Owner Work Phone: No 8 E.

NPR E

NPRD T Matyden Kants

Federal Law requires you to furnish your Social Security or Taxpayer Identification Number. Failure to comply will result in $28\%$ withholding and will not be refundable by Swift.

DIVISION ORDER

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Property Number:

421018835 Property Name: Operator: County and State: Property Description:

Received

$\because 4$

Date: December 16, 2011

Effective Date: First Production (October 1, 2011)

Effective Date: First Production

(October 1, 2011)

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attacied hereto and made a part hereof.

Swift Energy Operating, LLC ('Swift') shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to altorner fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceess until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

Owner Signature Owner Address:

Owner Tax ID/SS No. Owner Home Phone Owner Email:

$0^{2}202020202020202020202020202020202020202020$

Federal Law requires you to furnish your Social Security or Taxpayer identification Number. Failure to comply will result in $70\%$ withholding and will not be refundable by Swift.

DIVISION ORDER

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Horston, TX 77060

Property Number: Property Name: Operator: County and State: Property Description:

Received

Effective Date: First Production

(October 1, 2011)

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached herelo and made a part hereof.

Swift Energy Operating. LLC ("Swith") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhotic payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims assented regarding the interest in production claimed herein by tho undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to attorney foes or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the State in which the property is located

Owner Signature: Owner Address:

Owner Tax: 10155 No. Owner Home Phone: Owner Email:

Federal Law recurns you to furnish your Social Security or Taxpayer Identification Number. Fulture to comply will result in 28\% withholding and will not be refundable by Swift.

DIVISION ORDER

Received

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Property Numter: Property Name: Operator: County and State: Property Description:

Received

Data: December 16, 2011

Land Administration Effective Date: First Production

(October 1, 2011)

(October 1, 2011)

(October 1, 2011)

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule altached hereto and made a part hereof.

Swift Energy Operating, LLC ("Swin") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the monin following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not limited to attorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amend any lease or operating agreement between the undersigned and the lessen or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

Owner Signature: Owner Address: Owner Tax ID/SS No: Owner Home Phone: Owner Email:

| Owner's Madison 8/20018 | | | :--: | :--: | | 12545 PM 2088 | | | P. 115 buys, TX 75686 | | | 464-73-0667 | | | 903-735-7448.
PQ200002020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202020202

DIVISION ORDER

| | Received | Date: December 16, 2011 | | :--: | :--: | :--: | | To: Swift Energy Operating, LLC 15825 Northchase Drive, Suite 400 | | | | Houston, TX 77050 | | | | Property Number:
Property Name:
Operator:
County and State:
Property Description: | 421018835 Land Administration
Snowden EI 1R
Swift Energy Operating, LLC
La Salle and Dimmit Counties, Texas
2,137.979 acres, more or less, out of the T. T. R. R. Company Survey No. 137,
Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V.
Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138,
Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas | | | Owner Name: Johnny Lee Woodall
427 East Ransom Road, Space #144
Aransas Pass, TX 78336 | Owner Number:
Type of Interest: NPR
Decimal Interest: $\mathrm{.00078125}$
$(1/8\times 1/4\times 1/5\times 1/8)$ | |

The undersigned certifies it is the owner of the decimal interest in production or procceds as set out on the Divisior. of interest Schedule attached hereto and made a part hereof

Swift Energy Operating, LLC ("Swith") shall be notified, in writing, of any change in ownership, decimal interest, or payment adetess, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable status, pencing resolution of a title dispute or adverse claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest including but not imited to attorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit affecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Chacks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

This Division Order does not amenc any lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas

In addition to the terms and conditions of this Division Order, the undersigned and Swift may have certain statuiory rights under the laws of the state in which the prggeny is located.

| Owner Signature: | | | | :--: | :--: | :--: | | Owner Address: | | | | Owner Tax 10/55 No. | 4149-02-1694 | | | Owner Home Phone: | 361-301-5595 | Owner Work Phone: | | Owner FAX 8: | | | | | | | | Federal Law requires you to furnish your Social Security or Taxpayer identification Number. Failure to comply will result in $20\%$ withholding and will not be refundable by Swift. | | | | | | | | | | |

TRANSFER ORDER

Received

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Efective Date: Next Settlement

Property Name:

Property Number: Operator: County and State: Property Description: 2,177.979 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762, the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas

The undersigned certilies it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule altacteal heelo and made a part hereof.

Swift Energy Operating. LLC ('Sivilt') snall be notilied, in writing, of any change in ownership, decimal interest, or payment addiess, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the movil: following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withold payment without interest, unless otherwise required by applicable status, bonding resolution of a title dispute or adverse claims asserited regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indurunily and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest inchuling but not limited to attomey loss or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit aliecing the undersigned's interest.

Sivilt may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichaver may occur first. Payments of less than $\$10$ will be hold until production ceases or until the owner changes.

All fulure payments shall be made to the Transierse(s) including adjustments to payments made to the Transieror(s) prior to the effective date provided for herein of such change, transfer or difference. The Transierse so hereby assume(s) responsibility for accounting to the Transieror(s) for any such adjustments or natify of This Transfer Order does not amendyany lease or operating agreement between the undersigned and the lessee or ocerator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Transfer Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

TRANSFERER

TRANSFEROR

Owner Signatue:

Owier Address:

Owier Tax ID/SS No. Owier Day Time Phone:

Patricia Elma Chiloresa Ward Cogovan 1214244

Patricia Elma Chiloresa Ward Cogovan 1214244

Federa) Law requires you to furnish your Social Security or Taxpayer identification Number, Failure to comply will result in $28\%$ tax withholding and will not be refundable by Swift.

DIVISION OF INTEREST SCHEDULE

ATTACHED HERETO AND MADE A PART OF THAT CERTAIN TRANSFER ORDER COVERING PRODUCTION FROM THE SNOWDEN EF 1H WELL IN LA SALLE COUNTY, TEXAS

| OWNER | OWNER | DECIMAL | TYPE | | --- | --- | --- | --- | | NUMBER | NAME | INTEREST | INTEREST |

TRANSFERES:

| 14262 | Jenny M. Lawrence | .00078125 | RI | | --- | --- | --- | --- | | | 248 County Road 648 | | | | | Dayton, TX 77535 | | |

Transferred in accordance that certain Mineral Deed and Royalty Transfer, dated April 2, 2012, by and between Patricia Elma Childress Ward Cogovan, as Grantor, and Jenny M. Lawrence, as Grantee, recorded in La Salle and Dimmit Counties, Texas.

TRANSFER ORDER

Received

To: Swift Energy Operating, LLC 16825 Northchase Drive, Suite 400 Houston, TX 77060

Land Administration

Objective Date: Next Settlement

Property Name:

Property Number: Operator: County and State: Property Description:

Snowden EF 1H 421018835 Swift Energy Operating, LLC La Salle County, Texas 2,137,979 acres of land, more or less, out of the T. T. R. R. Company Survey No. 137, Abstract No. 762; the John H. Gibson Survey No. 143, Abstract No. 728; the J. V. Massey Survey No. 147, Abstract No. 746; and the Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas

The undersigned cerities it is the owner of the decimal interest in production or proceeds as set out on the Division of Interest Schedule attached hereto and made a part hereol.

Swift Energy Operating, LLC ("Swift") shall be notified, in writing, of any change in ownership, decimal interest, or payment address, including changes of interest contingent on payment of money or expiration of time. All such changes shall be effective the first day of the month following receipt of such notice which shall include documents satisfactorily evidencing such change.

Swift is authorized to withhold payment without interest, unless otherwise required by applicable statute, pending resolution of a title dispute or novence claims asserted regarding the interest in production claimed herein by the undersigned. The undersigned agrees to indemnify and hold Swift harmless from all liability resulting from payments made to the owner in accordance with such division of interest, including but not limited to attorney fees or judgments in connection with any suit that affects the undersigned's interest to which Swift is made a party. The undersigned shall notify Swift in writing of any lawsuit afiecting the undersigned's interest.

Swift may accrue proceeds until the total amount equals $\$100.00$ or more. Checks will be issued monthly and revenue will be accrued and paid whenever a minimum of $\$100$ is reached, or annually, whichever may occur first. Payments of less than $\$10$ will be held until production ceases or until the owner changes.

All future payments shall be made to the Translerce(s) including adjustments to payments made to the Transleror(s) prior to the effective date provided for herein of such change, transfer or difference. The Transfere so hereby assume(s) responsibility for accounting to the Transleror(s) for any such adjustments.

The Transfer Order does not amemofany lease or operating agreement between the undersigned and the lessee or operator or any other contracts for the purchase of oil or gas.

In addition to the terms and conditions of this Transfer Order, the undersigned and Swift may have certain statutory rights under the laws of the state in which the property is located.

TRANSFERER:

DIVISION OF INTEREST SCHEDULE ATTACHED HERETO AND MADE A PART OF THAT CERTAIN TRANSFER ORDER COVERING PRODUCTION FROM THE SNOWDEN EF 1H WELL IN LA SALLE COUNTY, TEXAS

| OWNER | OWNER | DECIMAL | TYPE | | :-- | :-- | :-- | :-- | | NUMBER | NAME | INTEREST | INTEREST |

TRANSFEREE.

| 14262 | Jenny M. Lawrence | 00078125 | RI | | :-- | :-- | :-- | :-- | | | 248 County Road 848 | | | | | Dayton, TX 77535 | | |

Interest formerly credited to the Estate of Samuel Kenny Childress V, Owner 14265. Transferred in accordance those certain Mineral Deed and Royalty Transfers, by and between Brandy Cannon et al, as Grantors and the heirs to the Estate of Samuel Kenny Childress V, and Jenny M. Lawrence, as Grantee recorded in La Salle County, Texas.

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

STIPULATION OF NON-PARTICIPATING ROYALTY INTEREST

THE STATE OF TEXAS

COUNTIES OF DIMMIT AND LASALI.E

This Stipulation of Non-Participating Royalty Interest is entered into by and between the undersigned parties who collectively own non-participating royalty interests in the oil, gas and other minerals that may be produced from the following-described lands in Dimmit and LaSalle Counties, Texas (hereinafter referred to as the "Lands"): "2,137.979 acres, more or less, out of the T. T. R. R. Co. Survey No. 137, Abstract No. 762, John H. Gibson Survey No. 143, Abstract No. 728, J. V. Massey Survey No. 147, Abstract No. 746, Wm. Clary Survey No. 138, Abstract No. 1609, La Salle County, Texas, and the Wm. Clary Survey No. 143, Abstract No. 1486, Dimmit County, Texas, being all of that certain called 2,751.6 acres described in Deed dated September 28, 1945, from Green Martin, et ur to Mrs. Mabel M. Snowden, recorded in Volume D-4, Page 33. Deed Records of La Salle County, Texas, LESS AND EXCEPT that certain 640.1 acres described in Warranty Deed dated January 11, 1984, from Mabel M. Snowden, et of to Seafirst Commercial Corporation, recorded in Volume 257, Page 352 of the Deed Records of La Salle County, Texas, and being more particularly described by mates and bounds on EXHIBIT A, attached herein and made a part hereof for all purposes."

640.689 acres more or less, and being composed of the following approximate acreages: 4.90 acres out to the Tylor Tap Railroad Co. Survey 137, Abstract 762, 4.84 acres out of the J. H. Gibson Survey 143, Abstract 728, 436.85 acres out of the J. V. Massey Survey 147, Abstract 746 and 193.51 acres out of the A. Salmon Survey 148, Abstract 1344 and further described in that certain Warranty Deed dated October 15, 1990, from Al Guevara Plumbing Co. Inc as Gruntor, and Gary L. Otto, James A. Otto, and Raymond M. Otto as Gruntor, recorded of record in Volume 323 Page 357 in the Deed Records of LaSalle County, Texas, and being more particularly described by mates and bounds on EXHIBIT B, attached herein and made a part hereof for all purposes."

WHEREAS, through a series of conveyances or through inheritance, the undersigned parties, have acquired non-participating royalty interests in the oil, gas and other minerals that may be produced from the L.ands, and

WHEREAS, some uncertainty exist as to the question of royalty interest conveyed by Mabel M. Snowden in that certain Non-Participating Mineral Deed recorded in Volume K-4, Page 311 of the Deed Records of LaSalle County, Texas, and it being the desire of the undersigned parties to clarify their ownership in the royalties from the production of the oil, gas and other minerals in and under the Lands.

NOW THEREFORE, the undersigned parties hereby stipulate and agree that their nonparticipating royalty interest in the production of the oil, gas and other minerals in and under the Lands, as between themselves, is as follows:

Owner

Edwin V. Acker, Jr, as to a life estate Remainder to: Edwin Scott Acker and Shella Acker Reinke. 1300 FM 624, Tildon, TX 78072 Edwin V. Acker, Jr. 1300 FM 624, Tildon, TX 78072 Emmett Adolph Acker, as to a life estate Remainder to Elaine Acker and Steven Acker. 1301 FM 624, Tildon, TX 78072 Emmeti Adolph Acker Bonnie Lee Skidmore Okra Bonnic Lee Adams 124 CR 7712, Divine, TX 78016 Lala Mae Minoon Akers 407 Tutt Avenue, Tall, TX 78390 Malydalyn Jones Mitchell 113 CR 1112, Peorsell, TX 78061 Pamela Ross 4189 Summit Way, Marietta, GA 30066 Sharon L. Williams 5105 Mountain Spring Trail Ft. Worth, TX 76123 Dean Edward Burkett, life estate Remainder to Dee Ann Wilson 4400 Blue Ridge, Belton, TX 76513 Daniel Wilson 2400 Greenbrier Dr. #A Manhatten, KS 66502 Brien Hunter 9910 E.99th Street, Tulan, OK 74133 Francis Madison Woodall 12545 FM 2088, Pittsburg, TX 75686 Lourene Yvonne Woodall Vance 16360 County Roec 1113 Plint, TX 75762 Jenny May Woodall Lawrence 248 County Road 648 Dayton, TX 77515 Julrury Lee Woodall 427 East Ranson Road, Space #144 Aransas Pass, TX 78336 Caron Marie Corum 136 Memory Trail San Antonio, TX 76232

Non- Participating Royalty Interest

1/4 of $1/5$ of $1/8$

1/4 of $1/5$ of $1/8$

1/4 of $1/5$ of $1/8$

1/4 of $1/5$ of $1/8$

1/4 of $1/5$ of $1/8$

1/4 of $1/5$ of $1/8$

1/2 of $1/5$ of $1/8$

1/2 of $1/5$ of $1/8$

1/2 of $1/4$ of $1/5$ of $1/8$

1/2 of $1/4$ of $1/5$ of $1/8$

1/3 of $1/4$ of $1/5$ of $1/8$

1/3 of $1/4$ of $1/5$ of $1/8$

1/8 of $1/4$ of $1/5$ of $1/8$

1/8 of $1/4$ of $1/5$ of $1/8$

Fstate of Kenny Childress, IV, docened

Purricin Elmo Chilcress Word 731 Gordon Strect, Ecen, NC 27288

1/8 of $1/4$ of $1/5$ of $1/8$ 1/8 of $1/4$ of $1/5$ of $1/8$

TO EFFECTUATE THE PURPOSE OF THIS AGREEMENT, for good and valuable consideration, including, but not limited to, the terms and provisions of this Stipulation of NonParticipating Royalty Interest, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned porties hereby grant, bargain, sell and convey unto each of the other undersigned porties a sufficient share of his/her non-participating royalty interest in the production of the oil, gas and other minerals in and under the Lands which he/she now owns, or is now claiming, so as to establish the respective ownership in the royalties from the production of the oil, gas and other minerals in and under the Lands as set forth above.

This instrument affects the undersigned porties' interests in the oil, gas and other minerals in and under the Lands and does not cover or affect ownership of the surface of the Lands, or any portion thereof. This instrument shall be binding upon the undersigned porties, their respective heirs, devises, personal representatives, successors and assigns. This instrument may be executed in multiple counterparts and each counterpart shall be deemed to be an original instrument.

This instrument may be executed in multiple counterparts, which all together shall be considered to be one instrument binding upon the porties executing a counterpart regardless of whether or not any other party named as a signatory executes a counterpart.

EXECUTED on this 21 day of $M$ atch, 2012, but effective for all purposes as of December 1, 2009.

ACKNOWLEDGEMENT

STATE OF 300000000000000

The foregoing insinument was acknowledged before me, the undersigned Nutary Public, by Brian Hunter, this 31 -th day of $100000000000000000$ , 2012.

SEAL

My Commission Expres: $10-03-{16}^{-}$

| JULIA AUTHELIA WINSLOW; | | IN THE DISTRICT COURT | | :--: | :--: | :--: | | BONNIE ADAMS; NORMAN AKERS; | | | | MARTIN SNOWDEN; MICKEY | | | | SNOWDEN; MAXINE BURKETT; | | | | YVONNE CAMPOS AND | | | | LOUISE J. BURT | | | | V. | | 343RD JUDICIAL DISTRICT | | EDWIN V. ACKER, EDWIN V. | | | | ACKER, JR., INDIVIDUALLY | | | | AND ADMINISTRATOR OF THE | | | | JOHNNIE LORENE ACKER TRUST, | | | | AND EMMETT A. ACKER, | | | | ADMINISTRATOR OF THE | | | | JOHNNIE LORENE ACKER TRUST | | MCMULLEN COUNTY, TEXAS |

DEFENDANTS' MOTION FOR SUMMARY JUDGMENT

TO THE HONORABLE JUDGE OF SAID COURT: COME NOW, Edwin V. Acker, Edwin V. Acker, Jr., Individually, and Edwin V. Acker, Jr., and Emmett A. Acker as Independent CoExecutors and Trustees under the Will of Johnnie Lorene Acker, Deceased, and respectfully move for summary judgment upon their counterclaim for declaratory judgment, and grounds for such Motion would show:

I.

This Motion is based upon the pleadings, affidavits and exhibits on file herein or attached hereto.

II.

Except as to the amount of attorney fees and interests to which Movants are entitled, there are no genuine issues of material fact in dispute and Defendants are entitled to Judgment as a matter of law.

III.

The sole issues presented for determination are whether: A. Johnnie Lorene Acker and the Defendants, or any one or more of them, breached any fiduciary duty owing to the Plaintiffs by reason of the execution by Johnnie Lorene Acker of the four oil and gas leases mentioned in Plaintiffs' Petition and in Defendants' Counterclaim and by the acceptance of overriding royalty interests in the four leases as a part of the consideration for the execution thereof.

terest created by the two overriding royalty interest assignments, hereinafter described; or, as the Plaintiffs contend, the Plaintiffs are the owners of an undivided four-fifths (4/5ths) in such overriding royalty interest.

Resolution of these issues, depend upon the construction of various documents pertaining to the partition of the Estate of J.E. Murphy, Deceased, hereinafter mentioned and described.

Johnnie Lorene Acker was one of the five children of J.E. Murphy, Deceased, and in the partition of his estate, there was awarded and set apart to Johnnie Lorene Acker two tracts of land in McMullen County, Texas, aggregating 1200 acres by Partition Deed from her sisters, Edna Mae Jones, Mabel Mullen Snowden and Julia Authelia Ackers (who is now Julia Authelia Winslow, a Plaintiff herein), and her brother, Emmett Granvel Murphy, dated October 27, 1948, and recorded in Volume 43, Page 218 of the Deed Records of McMullen County, Texas, a certified copy of this Partition Deed is attached hereto as Exhibit "A". The Partition Deed provides in part as follows:

"Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or under the above-described lands are hereby conveyed or are intended or affected by this instrument except as hereinafter provided, and the parties hereto, their respective heirs and assigns, shall continue to own and hold in common all of the oil, gas and other minerals, in, on, and under all of the above-described lands in the same undivided proportion that said parties now own and hold said oil, gas and other minerals together with the right to ingress and egress at all times for the purposes of mining, drilling and exploring said lands for oil, gas and other minerals and removing the same therefrom, and none of the royalties, reversionary interests, or other rights of said parties under existing oil, gas and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foregoing to the contrary notwithstanding, that the grantee of the surface estate herein, Johnnie Lorene Acker, shall have the exclusive right to execute, without the joinder of any of the grantors herein, any oil, gas or mineral lease that she desires on any such terms as she may desire, and receive, as her separate property, such bonuses, oil payments, and rentals as may be paid under said oil, gas and mineral leases so executed by her, except that she shall reserve in each oil, gas and mineral lease so executed by her, a base one-eighth (1/8) royalty interest for the benefit of herself and the other four children

Mullen County, Texas, were awarded and set apart to Edna Mae Jones in Partition Deed from her sisters and brother, dated October 21, 1948, and recorded in Volume 43, Page 221, Deed Records of McMullen County, Texas, a certified copy of which Deed is attached hereto as Exhibit "B"; certain lands in LaSalle County, Texas, were awarded and set apart to Julia Authelia Ackers (now Julia Authelia Winslow) in Partition Deed from her sisters and brother dated October 23, 1948, and recorded in Volume K-4, Page 313, Deed Records of LaSalle County, Texas, a certified copy of which Deed is attached hereto as Exhibit "C"; and certain lands in McMullen and Duval Counties, Texas, were awarded and set apart to Emmett Granvel Murphy in Partition Deed from his sisters, dated October 21, 1948, and recorded in Volume 44, Page 30, Deed Records of McMullen County, Texas, a copy of which Deed is attached hereto as Exhibit "D". Each of the three Partition Deeds contain the identical provision contained in the Partition Deed to Johnnie Lorene Acker, quoted above. Mabel M. Snowden had previously acquired lands in LaSalle and DeWitt Counties, Texas, as her part of her father's estate by Deed dated September 28, 1945, and recorded in Volume D-4, Page 53, Deed Records of LaSalle County, Texas. The conveyance to Mabel M. Snowden included the oil, gas and mineral estate in the lands therein described, and by Deed dated October 27, 1948, and recorded in Volume K-4, Page 311 of the Deed Records of LaSalle County, Texas, Mabel M. Snowden conveyed to her sisters, Edna Mae Jones, Johnnie Lorene Acker, Julia Authelia Ackers, and to her brother, Emmett Granvel Murphy, in equal shares, an undivided four-fifths (4/5ths) interest in and to all the oil, gas and other minerals acquired by her by the Deed of September 28, 1945. A copy of the October 27, 1948, Deed is attached hereto as Exhibit "E". The conveyance was limited by the following provision: "It is further agreed that Grantees shall have no in-

shall not be necessary for the Grantees to join in any such lease or leases so made; that Grantees shall receive under such lease or leases four-fifths (4/5ths) (the same being one-fifth ( $1/5$ th) to each Grantee) part of all the oil, gas and other minerals taken and saved under any such lease or leases and he or she shall receive the same out of the royalty provided for in such lease or leases, but Grantees shall have no part in the annual rentals paid to keep such lease or leases in force until drilling is begun."

The five deeds referred to above clearly express the intent of the parties thereto for the owners of the surface estate of lands covered by the respective Deeds to receive all of the benefits derived from leasing such owners' land, save and except only four-fifths (4/5ths) of a base one-eighth (1/8th) royalty, including, but not limited to, such benefits as bonuses, oil payments, rentals and royalties over and above four-fifths (4/5ths) of one-eighth ( $1/8$ th).

IV.

To further support the construction of the five deeds as set forth in Paragraph III above, Edna Mae Jones, Johnnie Lorene Acker, Mabel Mullen Snowden, Julia Authelia Ackers and Virginia Gertrude Akers Murphy (the surviving wife of Emmett Granvel Murphy, Deceased) entered into a Declaration and Agreement, dated December 9, 1953, and recorded in Volume X-4, Page 350, Deed Records of LaSalle County, Texas, and thereby confirmed their intention with respect to the rights of the surface owner and the sharing of royalties under any lease executed by the surface owner. A certified copy of this Agreement is attached hereto as Exhibit "F". The Declaration and Agreement states: "NOW, THEREFORE, for and in consideration of the benefits running form one to the other, and in order to clarify each deed executed dividing the Estate of J.E. Murphy, Deceased, we, Edna Mae Jones, joined pro forma by her husband Jimmie Jones, Johnnie Lorene Acker, joined pro forma by her husband, E.V. Acker, Mabel Mullen Snowden, joined pro forma by her husband, J.G. Snowden, Julia Authelia Ackers, an adult feme sole, and Virginia Gertrude Akers Murphy, an adult feme sole, and sole devisee under the Will of Emmett Granvel Murphy, Deceased, do hereby execute this instrument and hereby declare, that in making the division of the property in the Estate of J.E. Murdhv. Deceased. it was the inten-

to receive all bonuses and rentals on leases that might thereafter be made by the party to whom said surface was conveyed by Special Warranty Deed, provided, however, that the Lessor in said oil, gas and mineral lease, so executed by him or her, should reserve, in each oil, gas and mineral leases so executed, a basic one-eighth (1/8th) royalty interest (if all royalty interest was owned by J.E. Murphy at the time of his death, then a full 1/8th royalty would be reserved; otherwise a proportion of 1/8th reserved) for the benefit of the Lessor and the other children of J.E. Murphy, deceased, and those claiming under said children or child; and this is particularly true as to the land received by Edna Mae Jones in McMullen County; the land received by Johnnie Lorene Acker in McMullen County; the lands received by Julia Authelia Ackers in LaSalle County; and the land received by Emmett Granvel Murphy in McMullen and Duval Counties, Texas, all of which division was Special Warranty Deeds to said Emmett Granvel Murphy, the Deed of Emmett Granvel Murphy being dated October 21, 1948, and recorded in Volume 70, Pages 527-531 of Duval County Deed Records, reference to which is here made for all purposes, and the other deeds being executed on or about the same date, being recorded in the respective counties where the land is located, and reference to each of which is here made for all purposes."

Such Agreement expressly states that the surface owner is to reserve in each oil, gas and mineral lease executed by the surface owner, a basic one-eighth (1/8th) royalty for the benefit of the surface owner and the other children of J.E. Murphy, and those claiming under such children. Plaintiffs, Julia Authelia Winslow and Mabel Mullen Snowden are parties to the five deeds described in Paragraph III above and are parties to the Declaration and Agreement, and the remaining Plaintiffs each claim under one of the five deeds and under the Declaration and Agreement, and all of the Plaintiffs are bound by the terms of such documents.

V.

Pursuant to the authority granted to her under the terms of the Partition Deed, Johnnie Lorene Acker executed four oil and gas leases, each covering a portion of the lands described in the Partition Deed to her, each lease being to Murphy H. Baxter, as Lessee, said leases being described as follows:

1. Oil and gas lease covering depths from the surface of the ground down to 7,000 feet on 532.00 acres in the J.E. Murphy Survey, A-1181, Section 480.

1. Oil and gas lease covering the back cover point of the South 520.00 acres of the J.E. Murphy Survey, A-1181, Section 480, McMullen County, Texas, and being recorded in Volume 187, Page 187 of the Deed Records of McMullen County, Texas.

2. Oil and gas lease covering 166.00 acres, being all of the Southwest Quarter (SW/4) of the Calvin P. Wright Survey No. 128, A-1155, McMullen County, Texas, and being recorded in Volume 187, Page 183 of the Deed Records of McMullen County, Texas.

3. Oil and gas lease covering 25.37 acres, being excess acreage as surveyed in the J.E. Murphy Survey, A-1181, Section 480, McMullen County, Texas, and being recorded in Volume 187, Page 179 of the Deed Records of McMullen County, Texas.

A certified copy of each lease is attached hereto as Exhibits "G" through "J", respectively.

As a part of the bonus consideration for the execution and delivery of said leases, Murphy H. Baxter assigned to Johnnie Lorene Acker and husband, Edwin V. Acker, a five and one-half percent (5-1/2%) overriding royalty in and to the four leases by Assignment dated March 24, 1981, and recorded in Volume 188, Page 265, Deed Records of McMullen County, Texas. A certified copy of such Assignment being attached hereto as Exhibit "K". In consideration of services rendered by Emmett V. Acker, Jr., in the negotiation of the four leases, Murphy H. Baxter assigned to Edwin V. Acker, Jr., a two and one-half percent (2-1/2%) overriding royalty interest in each of the four leases by Assignment of overriding royalty interest dated March 24, 1981, and recorded in Volume 188, Page 263 of the Deed Records of McMullen County, Texas, a copy of which Assignment is attached hereto as Exhibit "L". Johnnie Lorene Acker died April 8, 1983, and her interest in the overriding royalty interest passed to her sons, Edwin V. Acker, Jr., and Emmett A. Acker, as Independent Co-Executors and Trustees under her will, a certified copy of which will and order Admitting same to probate is attached hereto as Exhibits "M" and "N", respectively.

VI.

The Partition Deed to Johnnie Lorene Acker is not ambiguous

INTEREFORE THE SELF-BRANCH OF 1988, the BANDS SECCERED IN 1988. Partition Deed on such terms as she may desire, "except that she shall reserve in each oil, gas and mineral lease so executed by her, a base one-eighth (1/8th) royalty interest for the benefit of herself and the other four children of J.E. Murphy, Deceased, grantors herein, in the same proportion they now own same." Each lease so executed by Johnnie Lorene Acker did reserve a base one-eighth (1/8th) royalty as required under the terms of the Partition Deed. Johnnie Lorene Acker, therefore, fulfilled any duty which she may have owed to the Plaintiffs herein.

VII.

The Partition Deed to Johnnie Lorene Acker also provides, as a matter of law, that she was entitled to receive the bonus consideration and oil payments paid under the terms of any lease so executed by her. As judicially admitted by Plaintiffs in their Original Petition, the overriding royalty interests in question were granted as a part the bonus consideration for the execution of the oil and gas leases, and under the express provisions of the Partition Deed the Plaintiffs are not entitled to participate therein.

VIII.

On the basis of the foregoing, it is established as a matter of law, that neither Johnnie Lorene Acker nor the Defendants, or any one or more of them breached any fiduciary duty owing to the Plaintiffs, and that the Defendants are entitled to receive the overriding royalty interests in question and hereinabove described.

WHEREFORE premises considered, Defendants pray that this Motion for Summary Judgment be set down for hearing and that upon a final hearing hereof Judgment be entered declaring that neither Johnnie Lorene Acker, nor the Defendants or any one or more of them breached any fiduciary duty owing to the Plaintiffs, and

Respectfully Submitted,

SCHNEIDER &; McWILLIAMS, P.C. P.O. Drawer 550

George West, Texas 78022 Telephone: (512) 449-1501 By: $\frac{\text{D}}{3·K·\text{Schneider}}$ Bar Card No. 17788000 Attorneys for Defendants

Certificate of Service

The undersigned hereby certifies that on the $9\frac{\pi L}{\text{day of}}$ September, 1986, a copy of the foregoing Motion for Summary Judgment was transmitted by certified mail, return receipt requested, to each of the following attorneys and/or parties of record in this cause:

Mr. T. Kellis Dibrell Dibrell, Dotson, Dibrell &; Dibrell 515 Busby San Antonio, Texas 78209 (Attorney for Julia Authelia Winslow, Bonnie Adams, Norman Akers, Martin Snowden, Mickey Snowden, Maxine Burkell, Yvonne Campos and Louise J. Burt)

Mr. Fred R. Granberry Villita Square Professional Building 112 Villita San Antonio, Texas 78205 (Attorney for Tommy Ragsdale) Mr. William E. Black Lynch, Chappell, Allday &; Alsup 900 Littlefield Building Austin, Texas 78701-3638 (Attorney for Mesa Pipeline Company) Ms. Patricia Kardell 66 Crestline Pleasanton, Texas 78064 Ms. Mary Van Blaricum P.O. Box 787 Pleasanton, Texas 78064 Ms. Madalyn Brents Post Office Box 343 Pearsall, Texas 78061

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trivided further that the content of five - 1.110 .1.111.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.1.

THE ST. IS. IT. ITALS

(1) HINTY I' LASSILLS

Before me, the undersigned authority, wathereyshokkies in and for La Sulle Jounty, Texes, on this day, persorually appeared J. G. Snowden and Habel Mullen Snowden, ula wife, rotn known to me to be the persons whose names are suseribed to the foregoing insirument, and wahnowledged to me that they eanh executed the same for the purposes and consideration tiaersin expressed, and the said Habel Mullen Snowden, wife of the said J. G. Snowden, having been examined by me privily and apart from her husband, and having the same fully explained to her, she, the said Habel Mullen' Snowden, unknowledged auch insirument to be her act and dead, and she declared that she had willingly atgred the same for the rurnoses and consideration therein expressed, and that aie did not wish to retrunt it.

Given under my hand and seel of office this the 27 dey of October, n. D. 1940. (SEAL) Mrs. n. H. Kingis County Slekk. in and for LaSalle Jounty, Texes.

THE STATE OF TITAS CONITY OF LASALLLS Before me, the undersigned authority, wathereyshokkies in and for Lasalle Jounty, Texes, on this day personally appeared J. F. Akers, and Julia nuthellk akers, his wife, both known to me to be the persons whose names are suhacribed to the foregoing insirument, and wahnowledged to me that they auch executed the same for the purposes and consideration tiaersin expressed, and the said Julia nuthellk Akers, wife of the said J. F. Akers, having been examined by me privily and apart from her husb nd, and having the same fully explained to her, she, the said Julia nuthella Akers, wahnowledged auch insirument to be her act and dead, and she declared that aie had willingly atgred the same for $t$ e purposes and consideration tiaersin expressed, and that aie did not wish to retrwot it.

Given under my hand and seel of office this the 27 dey of October, n. U. 1948. (SEAL) Mrs. n. U. Kingis County Slekk. in and for Lasalle Jounty, Texes.

THE ST. TE OF TITAS CONITY OF LASALLLS Before me, the undersigned authority, wathereyshokkies in and for Lasalle Jounty, Texes, on this day, personally appeared Emmett Grunvel surpily, known to me to be the person whose name is aib ascribed to the foregoing insirument, and wahnowledged to me that he executed the same for the purposes and consideration tiaersin expressed.

Given under my hand and seel of office this the 27 dey of October, n. D. 1940. (SE. L) Mrs. n. U. Kingis County Slekk. in and for Lasalle Jounty, Texes.

FILKD FOR FRIEND THIS IS TH. IF HIT. N. D. 1941 AT 4 HJ TIE F. U.

into John Moe Jones, the only ot or rith of J. K. Garrig, Docimand, if Divel 'i.mit, i. 18.12, is her aenarute individual property, the follpikj duseribed rual astite, to jother with all improven ments theraon, situated in MeCullen inunty, Texas, subject to the mineral ruservation minitufter mention, said property being more particularly described as follows, to-wit:

Psing the same surveys No. 121 and No. 123 described in a portion dead between J. I. Murphy and L. C. Black, dated October, 26, 1907, filled January 26, 1306, and recorded in Volume, M, page 504 of the Dead Records of Mcdullen Jcunty, Texas, to which dead and record reference is here made for a full and complete description of the land herein conveyed.

TO HAVE AND TO HOLD the surfaes astite of tie above described premises, together with all and singular the rights, heruditoments, and appurtenances t. 100 yunto in any a 18 e belonging, unto the said Rden Moe Jones, as her separate individual property, her heirs and wast jns foreved and we do hereby bind ourselves, our heirs, executors, administrators, successors, and wast jns, to warrant and forever defend all and singular tie surface astute of the said premises unto the said Rden Moe Jones, her heirs, wast jns, and successors, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, turough, or under us, but not otherwise.

Provided, however, it is expressaly understood and agreed by wuoh and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or under the above described lands are hereby conveyed or are intended or affected by t.1is instrument except as hereafter provided, and the parties hereto, their respective heirs and wast jns, shall continue to own and hold in common all of the oil, gas, and ther minerals in, on, and under all of tie above described lands in the same undivided proportion that said parties now own and hold said oil, gas, and other minerals together with the right of ingrues and egress at all times for tie purpose of mining, drilling, and exploring said lands for oil, gas, and other minerals, and removing tie same thef from, and none of the royulties, roversinoury interests, or other rights of said parties under existing oil, gas, and mineral leases shall be affected in any manner by this instrument; it being further provided, however, anything in the foreroing to the contrary notwithstanding, that the grantee of the surface estate herein, Edne Moe Jones, shall have the exalusive right to execute, without the joinder of any of the grantors herein, any oil, gas, or mineral lease that she desires on any such terms as she may desire, and receive, as her separate property, such bonuses, oil payments, and rentals as may be paid under said oil, gas and mineral leases so executed by her, except that she shall reserve in each oil, gas and mineral lease so executed by her, a base one-eighth (1/8) royalty interest for the benefit of herself and the other four children of J.E. Murphy, deceased, grantors herein, in the same proportion they now own same.

The rights and privileges herein granted to the grartee herein shall not only be for her benefit, but shall be for the benefit of her heirs, executors, administrators, and yasigns, and shall be a covenant running with the surface of the land above described.

tion therein expressed, and the said Johnis Lorene Acker, wife of the said E.V. Acker, having been examined by me prlully and apart from her husband, and having the same fully explained to her, she, the said Johnis Lorene Acker, ecknowledged such instrument to be her act and deed and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 23rd day of October, A.D. 1948. (SEAL) Geo. W. Ward, Notary Public in and for Duval County, Texas.

THE STATE OF TEXAS

COUNTY OF La Salle | BEFORE ME, the undersigned authority, exkengngs xkabakss in and for La Salle County, Texas, on this day personally appeared J.O. Snowden and Mabel Mullen Snowden his wife, both known to me to be the persons whose names are subscribed to the foregoing in. strument, and ecknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Mabel Mullen Snowden, wife of the said J.O. Snowden, having been examined by me prlully and apart from her husband, and having the same fully explained to her, she, the said Mabel Mullen Snowden, ecknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October, A.D. 1948. (SEAL) Mrs. A.U. Knaggs, County Clerk in and for La Salle County, Texas.

THE STATE OF TEXAS

COUNTY OF LA SALLE | BEFORE ME, the undersigned authority, exkenggssxkabakss in and for La Salle County, Texas, on this day personally appeared W.F. Akers and Julia Auteils Akers, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument, and ecknowledged to me that they each executed the same for the purposes and consideration therein expressed, and the said Julia Auteils Akers, wife of the said W.F. Akers, having been examined by me prlully and apart from her husband, and having the same fully explained to her, she, the said Julia Auteils Akers, ecknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein expressed, and that she did not wish to retract it.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27 day of October A.D. 1948. (SEAL) Mrs A.U. Knaggs, County Clerk: in and for La Salle County, Texas.

THE STATE OF TEXAS

COUNTY OF Duval | PEFOHR ME, the undersigned authority, a Notary Pui11c in and for Duval County, Texas, on this day personally appeared Fmmett Granval Murphy, known to me to be the person whose name is subscribed to the foregoing instrument, and ecknowledged to me that he executed the same for the purposes and consideration therein expressed.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 23rd day of October, A.D. 1948. (SEAL) Geo. W. Ward, Notary Public in and for Duval County, Texas.

FILKD PYR BECOHD THIS 27th DAY OF OCTOYEN, A.D. 1948, AT 9:00 O'CLOCK P.M. AND INLY REVOLVED THEA UHID DAY OF OCTOYEN A.D. 1948, AT 9:00 O'CLOCK A.M.

acknowledged, have GRANTED, SOLD and CONVEYED, and by these presents do GRANT, SELL and CONVEX unto Julia Authella Akers, the only other child of J. E. Murphy, deceased, of La Salle County, Texas, as her separate individual property, the surface estate of the following described real estate, together with all improvements thereon, situated in La Salle County, Texas, to-wit:

Nine hundred (900) acres of land in La Salle County, Texas, on which Julia Authella Akers andi her husband, W. F. Akers, now live, being fully described as ten (10) separate tracts of land in a deed from A. G. Salmon, et ux, to J. E. Murphy, dated July 24, 1946, and recorded in Volume E-4, on pages 540 et seq., of the Deed Records of La Salle County, Texas, to which deed and record reference is here made for a full and complete description of same.

TO HAVE AND TO HOLD, the surface estate of the above described premises, together with all and singular the rights, hereditaments and appurtenances thereunto in anyw1se belonging, unto the said Julia Authella Akers, as her separate individual property, her heirs and assigns forever. And we do hereby bind ourselves, our heirs, executors, administrators, successors and assigns, to warrant and forever defend all and singular the surface estate of the said premises unto the said Julia Authella Akers, her heirs, assigns, and successors, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through, or under us, but not otherwise.

Provided, however, it is expressly understood and agreed by each and all of the parties hereto that no part of the oil, gas, or other minerals in, on, or under the above described land are hereby conveyed or are intended or affected by this instrument except as hereinafter provide and the parties hereto, their respective heirs and assigns, shall continue to own and hold in common all of the oil, gas, and other minerals in, on, and under all of the above described land in the same undivided proportion that said parties now own and hold said oil, gas and other minerals together with the right of irgress and egress at all times for the purpose of minine, drill

NOTES

${}^1$ The Index for the Clerk's Record has incorrect filing dates and typographical errors. References in Appellants' Brief shall be to the file-stamped pleadings and not the Index.

${}^2$ Various parties, who are not parties to this appeal, filed original answers. (CR 011, 012, 016,055 )

Federal Law requires you to furnish your Social Security or Taxpayer identification Number. Failure to comply wail result in $20\%$ withholding and will not be refundable by Swift.

Case Details

Case Name: Patricia Jo Kardell, Martin Murphy Snowden, Mickey Darrell Snowden, and Mary Delilla Snowden v. Edwin v. Acker, Jr., Stephen Adolph Acker, Elaine Acker George, Shella Acker (Reinke) Bonner, and Edwin Scott Acker

Court Name: Court of Appeals of Texas

Date Published: Dec 18, 2015

Docket Number: 04-15-00534-CV

Court Abbreviation: Tex. App.