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Picking through the prospectus:

TRACT 36B-12</span>
( )

<span style="font-weight: bold">2. TERM</span>

The primary term of the Agreement is five (5) years. Producer shall spud a well on
the Premises or on unitized acreage containing a portion of the Premises, but the well
need not necessarily be on the portion of the Premises contained within the unit,
within five (5) years from the date first written above and shall drill said well with due
diligence. In the event the aforesaid well is not spud within the above mentioned five
(5) year period, the Agreement shall be automatically terminated in its entirety, unless
Commission approves in writing, thirty (30) business days in advance of the
anniversary date of the Agreement, the continuation of the Agreement on a year to year basis.

<span style="font-weight: bold">3. BONUS PAYMENT</span>

A Bonus Payment in the amount of Two Thousand Dollars ($2,000.00) per net acre
will be due within one hundred twenty (120) days of being awarded the bid.

Breaking 5 up into bits for easier reading // BT

<span style="font-weight: bold">5. WELL PAD FEE</span>

If the winning bidder (“Producer”) that signs the Agreement desires to place well pads
on the Premises, a well pad location fee of Two-Hundred Fifty Thousand Dollars
($250,000.00) per well pad will be due the Commission prior to the initiation of
construction of a well pad.

Only two (2) well pads will be allowed on the Premises
and are allowed only within the areas identified on the Exhibit “B” attached hereto.

The well pad fee covers horizontal and vertical wells drilled from each well pad
location up to a maximum of ten (10) wells without written consent of the

The well pad fee does not cover timber and habitat damages.

Actual well pad locations are subject to approval by the Commission.

A portion of the well pad fee may be deferred for habitat improvement projects,
performed by the winning bidder, on State Game Lands #36. Habitat improvement
projects include infrastructure upgrades of roads <span style="font-weight: bold">that are not utilized by the winning bidder.</span>

<span style="font-weight: bold">7. GAS/OIL ROYALTY</span>

As stated above, the gas/oil royalty is the item to be bid. Only royalty bids meeting or exceeding twenty percent (20.0%) of the gross proceeds will be accepted.

<span style="font-weight: bold">9. FREE GAS</span>

In the event a well pad is located on the Premises, a “FREE GAS” provision will be
included in the Agreement which will afford the Commission 350,000 cubic feet of
free gas use per year for Commission owned buildings, OR reimbursement from the
Producer for all gas not used by the Commission.......

<span style="font-weight: bold">10. TIMBER & HABITAT DAMAGES</span>

If surface use is necessary on the Premises, Producer shall pay the Commission twice the stumpage value for marketable trees, and shall remove said trees within six months from the date of their initial cutting or the ownership of said trees will revert back to the Commission for the Commission’s exclusive use. If there is early succession stage forest habitat that will be impacted by activities resulting from surface uses, a habitat damage fee of One Thousand Three Hundred and Fifty Dollars ($1,350.00) per net acre shall be due to the Commission.

<span style="font-weight: bold">11. FRESHWATER IMPOUNDMENT FEE</span>

If surface use is necessary and the need for a freshwater impoundment arises on the
Premises, a freshwater impoundment location fee of Twenty-Five Thousand Dollars
($25,000.00) per impoundment per year shall be paid to the Commission with first
annual payment due prior to the actual construction of such impoundment containing
ten (10) to fifteen (15) million gallons of water..................

<span style="font-weight: bold">14. RESTRICTIONS</span>

(unless otherwise approved in writing by the Commission and in accordance with
other State and Federal Regulations)

a) No flowback water shall be stored in impoundments;

b) Drill cuttings are not permitted to be buried on the Premises;

c) No surface disturbance is permitted within 500 feet of any building;

d) No surface disturbance is permitted within 100 feet of any stream, spring seep,
wetland, or body of water;

e) No surface disturbance is permitted within 300 feet of any wildlife refuge or
propagation area which has been so designated by Commission.

f) No surface disturbance is permitted within 1,000 feet of any water supply.

g) The proposed revegetation/reclamation plans for each well site and affiliated pipelines
shall be pre-approved by the Land Management Group Supervisor responsible for the
Premises and made a part of the Agreement. These plans may require specialized planting and cutting for wildlife habitat enhancement.

h) All dates and times for proposed oil/gas activities within the Premises including,
drilling, plugging, pipeline installation, reclamation, and revegetation, shall be
forwarded to the Land Management Group Supervisor responsible for the Premises at
least thirty (30) days prior to the scheduled activity.

<span style="font-weight: bold">i) No drilling, heavy hauling, plugging, road or pipeline construction activities on the
Premises will be permitted on the following dates unless approved in writing by the

 The opening day of archery deer season.

 The opening day of any youth or special-use hunting season.

 The opening day of early fall muzzleloader deer season.

 The opening day of early small game season.

 The opening day of general small game season.

 The first three (3) days of the antlered and antlerless or concurrent
antler/antlerless firearms deer season.

 The opening day of fall turkey season.

 All Saturdays of firearms deer season.

 The opening day of fall and spring turkey season.

 The opening day of bear season.


<span style="font-weight: bold">15. REVEGETATION/RECLAMATION PLAN</span>

Long detailed section on what is to be done as standard after drilling.

Maps are the last two pages.
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