================================================================================
DRILLING LEASE NO. 224-A AS MODIFIED
BETWEEN
TRUSTEES OF THE INTERNAL IMPROVEMENT FUND
OF THE STATE OF FLORIDA
AND
COASTAL PETROLEUM COMPANY
-----------
February 27, 1947
================================================================================
DRILLING LEASE NO. 224-A AS MODIFIED
WHEREAS, pursuant to the provisions of Chapter 20680, Laws of Florida,
Acts of 1941, for a valuable consideration therein stated, the Trustees of the
Internal Improvement Fund of the State of Florida, as Lessor, and Xxxxxx Oil
Explorations, Inc., a Florida corporation having its principal place of business
in Groveland, Florida, now Coastal Petroleum Company, with its principal place
of business in St. Petersburg, Florida, as Lessee, duly executed Drilling Lease
No. 224-A, dated the 27th day of December, 1944, which said lease is now in full
force and effect, and all rentals due thereon have been duly paid, and
WHEREAS, the United States of America has made claim to the title to a
large part of the areas included within said lease, and WHEREAS, the United
States of America has filed suit against the State of California, being Xx. 00
Xxxxxxxx, 0000 Xxxx, which suit involves the title to and oil rights of
Tidewater Lands of the State of California, (but may affect the title to a large
part of the areas included within the said lease) and
WHEREAS, such litigation renders the reformation of the Drilling Blocks as
described in Lease No. 224-A expedient and desirable for the purpose of
permitting immediate drilling thereunder while maintaining within such lease
provisions the areas included in such Drilling Blocks pending the outcome of
such litigation and assures to the said parties a reasonable area around each
well drilled the title to which is not question in such suit, and
WHEREAS, certain other provisions of said lease appear difficult of
construction, and require clarification as between the said parties, and
WHEREAS, it is the purpose and intent of the said parties to modify said
lease in certain particulars only to permit a practical performance thereof, but
not to extinguish said lease, nor to relieve the parties thereto of their
obligations thereunder, but to render the same more certain and explicit, and
WHEREAS, it is the purpose and intent of the said parties to ratify and
confirm, with the modifications hereinafter shown, the said Drilling Lease No.
224-A.
Now, THEREFORE, said lease is hereby modified in certain particulars only
so that the same shall now read as follows:
"THIS AGREEMENT, Made and entered into in duplicate this 27th day of
December, A. D. 1944, by and between the Trustees of the Internal Improvement
Fund of the State of Florida, hereinafter called 'TRUSTEES' or 'LESSORS', and
XXXXXX OIL EXPLORATIONS, INC., a Florida corporation having its principal place
of business in Groveland, Florida, hereinafter called 'LESSEE'.
WITNESSETH
For and in consideration of the sum of Five Hundred ($500.00) Dollars per
drilling block as hereinafter described, to them in hand paid, receipt whereof
is hereby acknowledged, together with the covenants, agreements and stipulations
hereinafter contained, as well as in further reference to and in pursuance of a
certain EXPLORATION CONTRACT FOR OIL, GAS AND MINERALS AND OPTION TO LEASE,
heretofore executed between Trustees and Lessee, the same being dated the 4th
day of October, 1941, said Trustees, under authority of Chapter 20680, Laws of
Florida, Acts of 1941, have leased, and by these presents do hereby lease, unto
said Lessee for the sole and only purpose of prospecting, drilling, mining and
operating for the production of oil, gas and sulphur, laying pipe lines,
building tanks, roads, power stations and structures thereon, but not including
bulkheading and filling water bottoms except when express permission therefor
has been obtained from Trustees, as may be necessary to produce, save and take
care of said products and taking the production thereof, those certain areas
referred to in said Exploration Contract as DRILLING BLOCKS and more
particularly described as follows, to wit:
All water bottoms of the Gulf of Mexico within three leagues (10.36
statute miles) of the ordinary high water xxxx of the outermost shore included
within Drilling Blocks 1, 2, 3 and 4 inclusive as said drilling blocks appear
upon a map which is attached hereto and made a part of this lease.
Also all submerged lands and water bottoms of all bays, sounds and bayous
of the Gulf, and adjacent Government waterfront lots contiguous to the water
bottoms of the Gulf of Mexico herein first described in Drilling Blocks 1, 2, 3
and 4 as said drilling blocks appear upon a map which is attached hereto and
made a part of this lease.
Also the bottoms of and water bottoms adjacent to the rivers which flow
through natural channels into the Gulf of Mexico and where included in the
description of Lease 224-A prior to modification thereof.
The Lessor finds and it is agreed that Lease 224-A prior to modification
was intended to include all lands submerged and unsubmerged which are described
herein and that all lands submerged and unsubmerged which were included in Lease
224-A prior to modification including but not by way of limitation all areas
described therein, as Drilling Blocks 1-A to 13-A inclusive, the north portion
of Drilling Block 8-B and all of Drilling Blocks 9-B to 14-B inclusive are
included herein.
This lease covers the area included between the northwest boundary of
Lease 224-A prior to modification; the southern boundary of said lease prior to
modification, which is the projection westward from the shore of the township
line between Townships 25 and 26 South; the western, or off-shore boundary,
shall be a line 10.36 statute miles seaward from the outermost land; the eastern
boundary shall include the areas as described in Exploration Contract No. 224,
dated October 4, 1941.
DRILLING BLOCK NO. 1 of said lease shall include the area as follows:
Bounded on the west by the northwest boundary of Lease No. 224-A
prior to modification; on the east by the projection southward from the
shore of the range line between Ranges 2 and 3 West; the south, or
off-shore boundary, shall be a line 10.36 statute miles seaward from
the outermost land; the north boundary shall include the area as
described in Exploration Contract No. 224, dated October 4, 1941.
DRILLING BLOCK NO. 2 of said lease shall include the area as follows:
Bounded on the west by the eastern boundary of Drilling Block No.
1 as herein defined; on the southeast by the projection westward from
the shore of the township line between Townships 10 and 11 South; the
southern, or off-shore boundary, shall be a line 10.36 statute miles
seaward from the outermost land; the north boundary shall include the
area as described in Exploration Contract No. 224, dated October 4,
1941.
DRILLING BLOCK NO. 3 of said lease shall include the area as follows:
Bounded on the north by the southeast boundary Drilling Block No.
2 as herein defined; on the south by the projection westward from the
shore of the township line between Townships 16 and 17 South; the
western, or off-shore boundary, shall be a line 10.36 statute miles
seaward from the outermost land; the eastern boundary shall include the
area as described in Exploration Contract No. 224, dated October 4,
1941.
DRILLING BLOCK NO. 4 of said lease shall include the area as follows:
Bounded on the north by the southern boundary of Drilling Block
No. 3 as herein defined; on the south by the southern boundary of Lease
No. 224-A prior to modification, which is the projection westward from
the shore of the township line between Townships 25 and 26 South; the
western, or off-shore boundary, shall be a line 10.36 statute miles
seaward from the outermost land; the eastern boundary shall include the
area as described in Exploration Contract No. 224, dated October 4,
1941.
All rivers, sloughs, arms and overflow lands included in the above blocks
are to be considered a part of that particular drilling block into which the
respective river, slough, arm or overflow land drains or empties.
The lease and its subdivision into drilling blocks are shown upon a map
which is attached hereto and made a part hereof.
Each drilling block shall comprise all coastal off-shore areas of the Gulf
of Mexico, together with all bars, islands and adjacent Government waterfront
lots contiguous thereto; all bays, bayous, sounds and inlets of the Gulf,
together with all connecting sloughs, flats and/or the overflow and/or submerged
lands, all bars and islands and all adjacent Government waterfront lots
contiguous to such areas; all rivers and lakes named or described herein,
together with all connecting sloughs, arms and overflow lands located in such
waters.
It is mutually covenanted, understood and agreed by and between the
respective parties hereto that the terms of this lease be and they are as
follows:
-1-
In consideration of the sum hereinbefore stated, the work herein agreed to
be performed, the royalties herein provided for, and all other agreements of
Lessee herein contained, said Trustees do hereby grant, lease and let
exclusively unto Lessee and Lessee's successors and assigns, subject to the
express permission requirements herein contained, those certain areas
hereinbefore described, for the purpose of drilling for and producing therefrom
oil, gas, sulphur, casinghead gas and casinghead gasoline, together with rights
of way and easements for roads, pipe lines, telephone and telegraph lines,
tanks, power houses, stations, gasoline plants and fixtures for producing,
treating and caring for such products, as well as any and all other rights and
privileges necessary and incident to or convenient for the economical operation
of such areas, alone or conjointly with neighboring areas, for oil, gas,
sulphur, casinghead gas and casinghead gasoline; and with the further right to
inject water, gas or oil into sub-surface strata, provided such injections in no
way damage any water or intrude any structure containing water suitable and
necessary for either present or future domestic requirements.
-2-
Subject to the other provisions herein contained, this lease shall be for
a term of five (5) years, computed from December 27, 1944, hereinafter sometimes
referred to as the primary term, and as to each DRILLING BLOCK as long
thereafter as oil, gas or other minerals are produced from such Drilling Block,
subject to renewal thereof for periods of five years each, as hereinafter
provided.
-3-
Lessee agrees to drill at least one (1) test well on each Drilling Block
within the first five year period of this lease, and to drill at least one (1)
additional well in each succeeding five (5) year renewal period hereof upon each
separate Drilling Block until the total number of xxxxx drilled upon each
Drilling Block shall equal one-half (1/2) the number of sections of land, or
equivalent, embraced in such Drilling Block.
Lessee at the time of the drilling of each well on a Drilling Block is
commenced shall file with Trustees a written declaration describing the Drilling
Block and the sections of land thereof to which such well shall apply. If no
well shall be commenced within the first five (5) year period of this lease, all
rights to renew this lease shall become unenforceable and the entire lease shall
be void, and if during each subsequent five (5) year renewal period hereof no
well or xxxxx be commenced as required herein, such renewal lease contract in
its entirety shall become terminated as to any area in such Drilling Block not
in a status conformable in this particular with the requirements of this lease.
The location of well or xxxxx in each Drilling Block is at the option of
Lessee. Said well or xxxxx shall be drilled to a depth not less than six
thousand (6,000) feet, when drilling is specified unless oil, gas or sulphur has
been found in paying quantities or igneous rock, or Paleozoic formation, or
formations not susceptible of being drilled with first-class drilling equipment
is encountered at a lesser depth.
If drilling operations on the said test well are not commenced within five
years from December 27, 1944, and continued thereafter to completion with
reasonable diligence and in a workmanlike manner to discover and develop said
premises for the production of oil, gas or sulphur until such xxxxx are
completed or abandoned, the entire lease shall be void, provided, however, that
if the Lessee shall have commenced drilling operations during the primary term,
which after completion shall comprise in the aggregate 24,000 feet of hole, all
drilling obligations herein required during the primary term shall have been met
and said lease shall be renewed for the ensuing five year period as to all of
the Drilling Blocks described herein. Thereafter, if drilling operations on a
well or xxxxx are not commenced within each five year period, and continued
thereafter to completion with reasonable diligence and in a workmanlike manner
to discover and develop such premises for the production of oil, gas or sulphur
until such xxxxx are completed or abandoned, the entire lease shall be void,
provided, however, that if the Lessee shall have commenced drilling operations
during the said term of five years, or any subsequent term, which after
completion shall comprise in the aggregate 24,000 feet of hole all drilling
obligations herein required during the said term shall have been met and said
lease shall be automatically renewed for the ensuing five year period as to all
of the Drilling Blocks described herein.
Notwithstanding all provisions to the contrary, it is understood that
drilling of a total of 24,000 feet in xxxxx begun during the primary term and
drilling of a total of 24,000 feet in drilling operations begun in each five
year term thereafter shall operate to extend this lease as to all of the
Drilling Blocks described herein, for an additional term of five years. Drilling
operations commenced on any block or blocks that result in meeting the depth
requirement herein contained, shall operate to hold that block, and any excess
over 6,000 feet drilled on any block shall constitute a credit and be applied
against the footage Lessee is obligated to drill on any other drilling block in
said lease.
What is termed a core hole, or hole for formation determination, shall not
be considered a well under the terms of this lease.
The Lessor does hereby find that the plan of drilling on said Drilling
Blocks as herein set out is of advantage to the Lessor for the accomplishment of
the purpose of discovering and producing oil on the premises herein leased and
carries out the real intent and purpose of Drilling Lease 224-A prior to
modification.
-4-
The royalties to be paid Trustees are:
(a) On Oil, if paid in kind, one-eighth (1/8) of that produced
and saved from said land, the same to be delivered at the xxxxx, or to
the credit of Trustees into the pipe line to which the lines may be
connected; Lessee shall have the right from time to time to purchase
any royalty oil in Lessee's possession, paying the market price
therefor prevailing for the field where produced, on the date of
purchase.
(b) On Gas, including casinghead gas or other gaseous substances,
produced from said land and sold or used off the premises, or in the
manufacture of gasoline or other products therefrom, the market value
at the mouth of the well of one-eighth (1/8) of the gas, in its natural
state, so sold or used, provided that on gas sold at the xxxxx the
royalty shall be one-eighth (1/8) of the amount of such sale; where
gas, from a well producing gas only, is not sold or used, Lessee must
pay as royalty One Hundred ($100.00) Dollars on such well per year, and
upon such payment it will be considered that gas is being produced
within the meaning of Paragraph 2 hereof for one five (5) year lease
period if Lessee desires the renewing privilege of said paragraph with
respect thereto.
(c) On Sulphur, the royalty shall be fifty cents ($.50) per long
ton, payable when mined.
(d) Any and all cash payments hereunder by Lessee to Trustees
shall be made by said Lessee to Trustees at Tallahassee, Florida.
(e) Lessee shall have the free use of oil, gas and water from
said lands, when used in the operation of this lease, which shall not
be subject to royalty requirements hereof.
-5-
For the purpose of examining the production therefrom, Trustees or their
authorized representatives or agents at all reasonable times shall have access
to the xxxxx, gauge books, oil and/or gas meters, tanks, reservoirs, sump holes,
buildings, and other structures and appliances placed upon the lands by Lessee.
-6-
Lessee agrees to keep logs of any and all xxxxx drilled upon the leased
premises, which said logs shall at all times be subject to inspection of
Trustees, their representatives or agents, and within such time as required by
law Lessee shall furnish the Trustees with a copy of said log. Lessee also
agrees to take regular samples of material encountered, at intervals not greater
than thirty (30) feet, and, as each sample is taken, to forward to the said
Trustees a portion thereof, not less than three (3) ounces in weight, within
such time as required by law, marked to indicate the Drilling Block from which
it is taken and the depth and the day the same is taken. Lessee further agrees
to keep true and correct accounts of petroleum and/or gas, or other valuable
substances from each and every well drilled on the leased premises where any
production is found and saved, which said accounts shall be open at all times to
the inspection of Trustees or their authorized representatives or agents.
-7-
The total area in said Drilling Blocks 1, 2, 3 and 4 is agreed to be
1,936,100 acres, whether the same is actually later determined to be more or
less, and the total annual rental thereon shall be $22,566.40, and which sum the
Lessor does hereby find is equal to the amount provided to be paid as rental by
the Lessee under this lease before modification. No rentals shall be paid on any
area, or the portion of any area, which Lessee has surrendered to Trustees as
herein provided, nor shall Lessee be required to pay rentals on any drilling
block wherein oil in commercial quantities is being produced.
For rental purposes, each drilling block shall be deemed to be one-fourth
(1/4) of the total acreage and for any part of a drilling block at the rate
which that part bears to the whole.
The drilling of each well shall be prosecuted with due diligence as
hereinbefore required. If the first and all subsequent xxxxx drilled on any
drilling block commenced within the terms of this lease and before the
expiration of five (5) years from this date, shall result as dry holes, then the
lease shall be extended as to such Drilling Block for an additional period of
five (5) years under the terms and conditions as herein set out for such renewal
period. The payment or tender of rental may be made by the valid check or draft
of Lessee mailed or delivered to Lessor on or before such date of payment. The
down cash payment at the time of executing this lease is consideration for this
lease according to its terms and shall not be allocated as mere rental for a
period.
This lease contemplates the reasonable development of the oil and gas
underlying the land described in this lease including the drilling of as many
xxxxx as a reasonably prudent operator would drill under the same or similar
circumstances. In the event a well or xxxxx producing oil or gas in paying
quantities should be brought in on adjacent land and within three hundred thirty
(330) feet of and draining the leased premises, or acreage pooled therewith,
Lessee agrees to drill such offset xxxxx as a reasonably prudent operator would
drill under the same or similar circumstances.
-8-
On what are commonly termed coastal and tide water areas, no well shall be
begun nearer than two hundred (200) feet from the ordinary high water xxxx of
the shore, nor for lake and river areas, nearer than fifty (50) feet from the
ordinary high water xxxx, without the written consent of the owner of adjoining
upland; nor shall any well be begun within one-eighth (1/8) of a mile of the
shore line in front of any village of five (5) or more families; and where the
majority of the dwelling houses occupied by said families are each less than
three hundred (300) feet from another of such dwelling houses, without the
written consent of the owners of the water front upland situated one-fourth
(1/4) of a mile each way from a line drawn from the well to the shore line at
the nearest point; nor shall any well be begun within the corporate limits of
any municipality without the written consent of the governing authorities
thereof. No well shall be begun nearer than two hundred fifty (250) feet from
the right of way of any State Highway without the consent of Lessors. The
inhibitions of this paragraph shall not apply where producing xxxxx shall have
been drilled on lands, not included in this lease, within two hundred fifty
(250) feet of the inhibited area.
-9-
Except as may otherwise be provided herein, Lessee shall procure all
necessary permits from the Federal Government and assume all responsibilities to
the Federal Government incident to the operations of this lease, but the Lessor
shall cooperate in securing such permits.
-10-
Lessee shall have the right at any time to remove all machinery and
fixtures placed by Lessee on said leased premises, including the right to
withdraw and remove casing.
-11-
Any well, or hole, after being drilled, unless in operation, shall be
securely capped, or if casing is removed, shall be permanently and tightly
sealed to the satisfaction of Trustees in such manner and so placed as to
prevent escape of salt water or undesirable material to the surface, or its
intrusion into any sub-surface structure bearing water in sufficient quantity
and of quality suitable for domestic purposes.
-12-
Lessee shall bury his pipe line not less than fifteen (15) inches below
ground surface, or if water areas are traversed, said pipe line shall be so laid
that no obstruction to navigation or use of waterway will result therefrom.
-13-
The rights of either party hereunder may be assigned in whole or in part
only after written consent thereto from the Trustees is first obtained; and the
provisions hereof shall extend to the successors and assigns of the parties
hereto, but no change or division in ownership of land rentals or royalties,
however accomplished, shall operate to enlarge or diminish the obligations or
the rights of either party. Neither this lease nor the work to be performed
hereunder shall in any way limit the right of said Trustees to sell or dispose
of, or to lease for other purposes than those herein, any area or areas herein
described or any part thereof covered by this lease, but in case of sale,
conveyance or lease by the said Trustees, such sale, conveyance or lease shall
be subject to this lease.
In the event of any legal assignment of this lease as to a segregated
portion of the area covered thereby, the rentals payable hereunder shall be
apportionable as between the several leasehold owners ratably according to the
area of each, and deferment of rental payments by one shall not affect the
rights of other leasehold owners hereunder.
-14-
The breach by Lessee of any obligations arising hereunder shall not work
as a forfeiture or termination of this lease, nor cause a termination or
reversion of the estate created hereby, nor be grounds for cancellation hereof
in whole or in part, except as otherwise provided herein and except as
forfeitures may be imposed by laws of this State.
In the event the Trustees consider that operations hereunder are not at
any time being conducted in compliance with this lease, said Trustees shall
notify Lessee in writing of the facts relied upon as constituting a breach
hereof and Lessee, if in default, shall have thirty (30) days after the mailing
or sending of such notice in which to commence compliance with the obligations
imposed by virtue of this instrument. If Lessee is in fact not complying with
the terms of the lease and if commencement of compliance shall not have been
undertaken by Lessee within said thirty (30) days, and pursued to the
satisfaction of Trustees, said Trustees shall have the right without further
notice to declare this lease in default as to any part so affected, and
thereupon all rights of Lessee hereunder as to such part shall terminate and
cease.
-15-
When drilling or other operations are delayed or interrupted by lack of
water, labor or material, or by fire, storm, flood, war, rebellion,
insurrection, riot, strike, differences with workmen, or failure of carriers to
transport or furnish facilities for transportation, or as a result of some
order, requisition or necessity of the Government, or as the result of any cause
whatsoever beyond the control of the Lessee, when notice thereof and claim
therefor shall have been given to the Trustees within twenty (20) days of the
occurrence of the excusing cause, the time of such delay or interruption shall
not be counted against Lessee, anything in this lease to the contrary
notwithstanding; EXCEPT, HOWEVER, as to requirements with respect to drilling as
provided in Chapter 20680, Laws of Florida, Acts of 1941.
-16-
Lessee shall have the right to surrender any portion of any area described
herein without in any way impairing its rights under this lease in remaining
parts or portions. In the event of surrender of any portion, Lessee shall
execute to Trustees a release of the part or parts Lessee desires to surrender.
-17-
Lessee shall not issue any stock or other securities to finance its
obligations hereunder prior to the production of gas, oil or other minerals in
paying quantities without the approval of the Trustees unless such issue meets
the requirements of the Federal Securities and Exchange Commission or the
requirements of the "BLUE SKY LAWS" of any State where such stock may be sold.
-18-
Lessee assumes responsibility for all damages caused by Lessee's
operations and will in all respects save the Trustees harmless on account of
anything growing out of this lease, the source of which is the operations of
said Lessee.
-19-
No well drilled under the terms of this lease, and capable of producing
oil, gas or sulphur in commercial quantities, may be closed and production of
oil, gas or sulphur therefrom curtailed, without the written consent of the
Trustees.
-20-
Lessee agrees that it will on or before September 1, 1947, start drilling
operations on a location to be selected by it in this lease or in Lease No.
224-B, dated March 27, 1946, or in Lease No.248, dated December 19, 1944, and
that it will prosecute the drilling of such well with due diligence. The
agreements to drill this well appear in Paragraphs Twenty (20) of this lease,
Lease 224-B and Lease 248 and refer to the same well and are not to be construed
as cumulative. Lessee further agrees that it will commence drilling operations
within the primary term of this lease that will with due diligence thereafter
and upon completion accomplish the drilling of at least 24,000 feet of hole on
this lease. Lessee also agrees that thereafter at least one set of tools will be
employed continuously during the remainder of the primary term of Leases 224-B,
248 and this lease until at least 24,000 feet of hole has been drilled on this
lease, and that there will not be an interruption of over 120 days, except for
force majeure, between the completion of one well and the beginning of drilling
operations on another well on one of the said leases.
-21-
It is understood that in any of the drilling obligations with respect to
the areas covered by this lease, Lessee may acquire the right to drill and may
drill on areas contiguous thereto, in which case the said drilling operations
will be accepted as compliance with the Lessee's drilling obligations on the
areas covered by this lease as to any one Drilling Block contiguous thereto,
provided that a 1/8 royalty in the well drilled is assigned to the State without
cost to the latter.
-22-
If any sentence, paragraph, clause or provision of this Drilling Lease
Number 224-A as modified shall be held subject to any laws of the State of
Florida now in effect, and enacted subsequent to October 4, 1941, and therefore,
invalid, then in such case the rights and obligations of the Lessor and Lessee
as to the subject matter of such invalid sentence, paragraph, clause or
provision shall be governed by the terms of Drilling Lease Number 224-A prior to
modification thereof, except that any time or times fixed for performance on the
part of either of the said parties under the terms of the lease before
modification corresponding to such invalidated portions shall be extended for a
reasonable time after final adjudication of such invalidity to permit reasonable
compliance tberewith.
-23-
WHEREAS, the United States of America has made claim to the title to some
of the areas included within this lease, and
WHEREAS, the United States of America has filed suit against the State of
California, being Number 12 Original, 1945 Term, which suit involves the title
to and oil rights of Tidewater Lands of the State of California, but may affect
the title to some of the areas included within this lease, and
WHEREAS, the Trustees recognize that said claim and suit may place a cloud
on the title to some of the areas included in this lease, and
WHEREAS, Lessee does hereby agree to carry out their obligations herein
contained without claiming any release from any of said obligations on the basis
of the said claim on title except as hereinafter stated, it is hereby agreed by
the Trustees that: If a decision adverse to the State of California shall be
rendered in said suit by the Supreme Court of the United States, then in that
event the Lessee is relieved from any duty to carry out its drilling obligations
assumed under this lease as to any five-year period except the first five-year
period hereof on any lands the title to which appears to be affected by such
decision, and the rentals herein provided for shall be abated proportionately to
the extent such decision appears to divest title to part of the lands hereby
affected from the State of Florida, until such time as there is a decision
rendered by the Supreme Court of the United States quietmg title in Lessor or
the State of Florida to the areas affected by any adverse decision in the said
suit against the State of California; within sixty days after title to said
areas is so quieted in Lessor or the State of Florida, Lessee must commence
operations to carry out the drilling obligations of this lease and resume
payment of the full rentals.
-24-
Lessor finds as a matter of fact that this Lease as modified is of
material advantage to the State of Florida; that within the primary term 24,000
feet of well hole must be drilled, in addition to payment of rentals, whether
the xxxxx are drilled or not, and that it is for the best interest of the Trust
Fund administered by the Lessors that exploration for and discovery of oil be
accomplished as soon as feasibly possible, and that this lease be modified, as
well as Leases Nos. 224-B and 248, as modified, most nearly serve such interest.
-25-
The Trustees also find, and it is agreed, that the modification of this
lease is not, and is not intended to be, a new agreement or novation.
IN WITNESS WHEREOF, the Trustees of the Internal Improvement Fund of the
State of Florida, the Lessor, have hereunto subscribed their names and have
caused the seal of the Department of Agriculture of the State of Florida to be
hereunto affixed, and the Lessee has caused this instrument to be executed in
its name by its Vice President, and its corporate seal to be affixed, attested
by its Secretary, as of the date aforesaid."
Executed this 27th day of February, A. D., 1947.
XXXXXXX X. XXXXXXXX (SEAL)
Governor
C. M. GAY (SEAL)
Comptroller
J. XXXXX XXXXXX (SEAL)
State Treasurer
__________________________________ (SEAL)
Attorney General
XXXXXX XXXX (SEAL)
Commissioner of Agriculture
ACTING AS AND COMPOSING THE TRUSTEES
OF THE INTERNAL IMPROVEMENT FUND
OF THE STATE OF FLORIDA
Lessor
COASTAL PETROLEUM COMPANY
(Formerly Xxxxxx Oil Explorations, Inc.)
By X. X. XXXX-XXXXXXX
Vice-President.
Lessee
Attest:
XXXXXXXX X. XXXXX
Secretary
Signed, Sealed and Delivered in the presence of:
X. XXXXXX XXXXXX
XXXXX XXXXX XXXXXX
Approved:
XXXXXX X. XXXXXX
