Document:

EXHIBIT 10.1

                             EDWARDS COUNTY 010731

                           OIL, GAS AND MINERAL LEASE

THIS AGREEMENT made this 27th day of May, 2001

Roy William Baker, Jr., individually and Executor and Trustee of the
Roy W. Baker, Sr. Estate

Lessor (whether one or more), whose address is:  425 Rocksprings, TX
78880 and Ness Energy International, Inc. 4201 I-20 Svc Rd, Willow
Park, TX 76087 Lessee, WITNESSETH:

1.  Lessor in consideration of Ten Dollars and other valuable
    consideration Dollars ($10.00 and OVC), in hand paid, of the
    royalties herein provided, and of the agreements of Lessee herein
    contained, hereby grants, leases and lets exclusively unto Lessee
    for the purpose of investigating, exploring, prospecting, drilling
    and mining for and producing oil, gas and all other minerals,
    conducting exploration, geologic and geophysical surveys by
    seismograph, core test, gravity and magnetic methods, injecting
    gas, water and other fluids, and air into subsurface strata, laying
    pipe lines, building roads, tanks, power stations, telephone lines
    and other structures thereon and on, over and across lands owned or
    claimed by Lessor adjacent and contiguous thereto, to produce,
    save, take care of, treat, transport and own said products, and
    housing its employees, the following described land in Edwards
    County, Texas, to-wit:

All unleased portions of the Baker Ranch located approximately 15
miles NNW from Rocksprings and more particularly described in
Attachments "A".

All references to one/eighth royalty shall be changed to
three/sixteenths royalty (3/16) herein.

This lease also covers and includes all land owned or claimed by
Lessor adjacent or contiguous to the land particularly described
above, whether the same be in said survey or surveys or in adjacent
surveys, although not included within the boundaries of the land
particularly described above.

2.  This is a paid up lease and subject to the other provisions herein
    contained, this lease shall be for a term of until June 30, 2004
    years from this time (primary term) and as long thereafter as oil,
    gas or other mineral is produced from said land or land with which
    said land is pooled hereunder.

3.  As royalty, lessee covenants and agrees: (a) To deliver to the
    credit of lessor, in the pipelines to which lessee may connect its
    wells, the equal one-eighth part of all oil produced and saved by
    lessee from said land, or from time to time, at the option of
    lessee, to pay lessor the average posted market price of such one-
    eighth part of such oil at the wells as of the day it is run to the
    pipe line or storage tanks, lessor's interest, in either case, to
    bear one-eighth of the cost of treating oil to render it marketable
    pipe line oil; (b) to pay lessor for gas and casinghead gas
    produced from said land (1) when sold by lessee, one-eighth of the
    amount realized by lessee, computed at the mouth of the well, or;
    (2) when used by lessee of said land or in the manufacture of
    gasoline or other products, one-eighth of the amount realized from
    the sale of gasoline or other products extracted therefrom and one-
    eighth of the amount realized from the sale of residue gas after
    deducting the amount used for plant fuel and/or compression; (c) To
    pay lessor on all other minerals mined and marketed or utilized by
    lessee from said land, one-tenth either in kind or value at the
    well or mine at lessee's election, except that on sulfur mined and
    marketed the royalty shall be one dollar ($1.00) per long ton.  If,
    at the expiration of the primary term or at any time or times
    thereafter, there is any well on said land or on lands with which
    said land or any portion thereof has been pooled, capable of
    producing oil or gas, and all such wells are shut-in, this lease
    shall, nevertheless, continue in force as though operations were
    being conducted on said land for so long as said wells are shut-in,
    and thereafter this lease may be continued in force as if no shut-
    in had occurred.  Lessee consents and agrees to use reasonable
    diligence to produce, utilize, or market the minerals capable of
    being produced from said wells, but in the exercise of such
    diligence, lessee shall not be obligated to install or furnish
    facilities other than well facilities and ordinary lease facilities
    of flow lines, separator, and lease tank, and shall not be required
    to settle labor trouble or to market gas upon terms unacceptable to
    lessee.  If, at any time or times after the expiration of the
    primary term, all such wells are shut-in for a period of ninety
    consecutive days, and during such time there are no operations on
    said land, then at or before the expiration of said ninety day
    period, lessee shall pay or tender, by check or draft of lessee, as
    royalty, a sum equal to one dollar ($1.00) for each acre of land
    then covered hereby.  Lessee shall make like payments or tenders at
    or before the end of each anniversary of the expiration of said
    ninety day period if upon such anniversary this lease is being
    continued in force solely by reason of the provisions of this
    paragraph.  Each such payment or tender shall be made to the
    parties who at the time of payment would be entitled to receive the
    royalties which would be paid under this lease if the wells were
    producing, and may be deposited in the People's State  Bank at
    Rocksprings, Texas or its successors, which shall continue as the
    depositories, regardless of changes in the ownership of shut-in
    royalty.  If at any time that lessee pays or tenders shut-in
    royalty, two or more parties are, or claim to be, entitled to
    receive same, lessee may, in lieu of any other method of payment
    herein provided, pay or tender shut-in royalty, in the manner above
    specified, either jointly to such parties or separately to each in
    accordance with their respective ownerships thereof, as lessee may
    elect.  Any payment hereunder may be made by check or draft of
    lessee deposited in the mail or delivered to the party entitled to
    receive payment or to a depository bank provided for above on or
    before the last date for payment.  Nothing herein shall impair
    lessee's right to release as provided in paragraph 5 hereof, in the
    event of assignment of this lease in whole or in part, liability
    for payment hereunder shall rest exclusively on the then owners of
    this lease, severally as to acreage owned by each.

4.  Lessee, at its option, is hereby given the right and power to pool
    or combine the acreage covered by this lease or any portion thereof
    as to oil and gas, or either of them, with any other land covered
    by this lease, and/or with any other land, lease or leases in the
    immediate vicinity thereof to the extent hereinafter stipulated,
    when in Lessee's judgement it is necessary or advisable to do so in
    order properly to explore, or to develop and operate said leased
    premises in compliance with the spacing rules of the Railroad
    Commission of Texas, or other lawful authority, or when to do so
    would, in the judgment of Lessee, promote the conservation of oil
    and gas in and under and that may be produced from said premises.
    Units pooled for oil hereunder shall not substantially exceed 40
    acres each in area, and units pooled for gas hereunder shall not
    substantially exceed in area 640 acres each 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 created may conform substantially in size with those
    prescribed or permitted by governmental regulations.  Lessee under
    the provisions hereof may pool or combine acreage covered by this
    lease or any portion thereof as above provided as to oil in any one
    or more strats.  The units formed by pooling as to any stratum or
    strata need not conform in size of area with the unit or units into
    which the lease is pooled or combined as to any other stratum or
    strata, and oil units need not conform as to area with gas units.
    The pooling in one or more instances shall not exhaust the rights
    of the Lessee hereunder to pool this lease or portions thereof into
    other units.  Lessee shall file for record in the appropriate
    records of the county in which the leased premises are situated an
    instrument describing and designating the pooled acreage as a
    pooled unit; and upon such recordation the unit shall be effective
    as to all parties hereon, their heirs, successors, and assigns,
    irrespective of whether or not the unit is likewise effective as to
    all other owners of surface, mineral, royalty, or other rights in
    land included in such unit.  Lessee may at its election exercise
    its pooling option before or after commencing operations for or
    completing an oil or gas well on the leased premises, and the
    pooled unit may include, but it is not required to include, land or
    leases upon which a well capable of producing oil or gas in paying
    quantities has therefore been completed or upon which operations
    for the drilling of a well for oil or gas have theretofore been
    commenced.  In the event of operations for drilling on or
    production of oil or gas from any part of a pooled unit which
    includes all or a portion of the land covered by this lease,
    regardless of whether such operations for drilling were commenced
    or such production was secured before of after the execution of
    this instrument or the instrument designating the pooled unit, such
    operations shall be considered as operations for drilling on or
    production of oil or gas from land covered by this lease whether or
    not the well or wells be located on the premises covered by this
    lease and in such even operations for drilling shall be deemed to
    have been commenced on said land within the meaning of paragraph 5
    of this lease; and the entire acreage constituting such unit or
    units, as to oil and gas, or either of them, 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 purpose of computing the royalties to which
    owners of royalties and payments out of production and each of them
    shall be entitled on production of oil and gas, or either of them,
    from the pooled unit, there shall be allocated to the land covered
    by this lease and included in said unit (or to each separate tract
    within the unit if this lease covers separate tracts within the
    unit) a pro rata portion of the oil and gas, or either of them,
    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 and included in the pooled unit (or
    to each separate tract within the unit if this lease covers
    separate tracts within the unit) that pro rate portion of the oil
    and gas, or either of them, produced from the pooled unit which the
    number of surface acres covered by this lease (or in each such
    separate tract) and included in the pooled unit bears to the total
    number of surface acres included in the pooled unit.  Royalties
    hereunder shall be computed on the portion of such production,
    whether it be oil and gas, or either of them, so allocated to the
    land covered by this lease and included in the unit just as though
    such production were from such land.  The production from an oil
    well will be considered as production from the lease or all pooled
    unit from which it is producing and not as production from a gas
    pooled unit; and production from a gas well will be considered as
    production from the lease or gas pooled unit from which it is
    producing and not from an oil pooled unit.  The formation of any
    unit hereunder shall not have the effect of changing the ownership
    of any shut-in production royalty which may become payable under
    this lease.  If this lease not or hereafter covers separate tracts,
    no pooling or unitization of royalty interest as between any such
    separate tracts is intended or shall be implied or result merely
    from the inclusion of such separate tracts within this lease but
    Lessee shall nevertheless have the right to pool as provided above
    with consequent allocation of production as above provided.  As
    used in this paragraph 4, the words "separate tract" mean any tract
    with royalty ownership differing, now or hereafter, either as to
    parties or amounts, from that as to any other part of the leased
    premises.  At expiration of primary term this lease shall expire
    except for 320 acres around each producing well.

5.  If at the expiration of the primary term, oil, gas, or other
    mineral is not being produced on said land, or from the land pooled
    therewith, but Lessee is then engaged in drilling or reworking
    operations thereon, or shall have completed a dry hole thereon
    within 60 days prior to the end of the primary term, the lease
    shall remain in force as long as operations on said well or for
    drilling or reworking of any additional well are proceeded with no
    operation of more than 60 consecutive days, and if they result in
    the production of oil, gas or either mineral, so long thereafter as
    oil, gas, or other mineral is produced from said land, or from land
    provided pooled therewith.  If, after the expiration of the primary
    term of this lease and after oil, gas, or other mineral is produced
    from said land, or from land pooled therewith, the production
    thereof should cease from any cause, this lease shall not
    terminate.  If, lessee commences operations for drilling or
    reworking within 60 days after the cessation of each production,
    but shall remain in force and effect as long as such operations are
    presented with no cessation of more than 60 consecutive days, and
    if they result in the production of oil, gas, or other mineral, so
    long thereafter as oil, gas, or other mineral is produced from said
    land, or from land pooled therewith.  Any pooled unit delegated by
    lessee in compliance with the terms hereof, may be dissolved by
    lessee by instrument filed for record in the appropriate records of
    the county in which the leased premises are      at any time after
    the completion of a dry hole or the completion of production on
    said unit.   In the event a well or wells producing oil or gas in
    paying quantities should be brought in on adjacent land and within
    330 feet of and draining the leased premises or land pooled
    therewith surrender this lease as to such portion or portions need
    be relived of all obligations as to the acreage surrounded.

6.  Lessee shall have the right at any time during or after the
    expiration of this lease to remove all property and fixtures placed
    by lessee on said land, including the right to draw and remove
    casing.  When required by Lessee, Lessee will buy all pipelines
    below ordinary plowed depth, and no well shall be drilled within
    200 (200) feet of any residence or barn being on said land without
    lessor's consent.

7.  The rights of either party hereunder may be assigned in whole or
    part and the provisions hereof shall extend to their heirs,
    successors and assigns:  but no change or division of the land, or
    royalties, however, accomplished, shall operate to enlarge the
    obligations or diminish the rights of lessee; and no change or
    division in such ownership shall be biding on lessee until 30 days
    after lessee shall have been furnished by registered US mail at
    lessees principal place of business with a certified copy of
    recorded instrument or instructions evidencing terms.  In the event
    of assignment hereof in whole or in part, liability for breach of
    any obligations hereinafter shall rest exclusively upon the owner
    of this lease or of a portion thereof who commits such breach.  If
    six or more parties becomes entitled to royalty hereunder, lessee
    may withhold payment thereof unless and until furnished with a
    recordable instrument executed by all such parties designating an
    agent to receive for payment of all.

8.  The breach by lessee of any obligation arising hereunder shall not
    work a forfeiture or cancellation of this lease nor cause a
    termination of revocation of the estate created by hereby or be
    grounds for cancellation hereof in whole or in part.  No obligation
    reasonably to develop the lease premises shall arise during the
    primary term should oil, gas, or other minerals in paying
    quantities be discovered on said premises then a  after the
    expiration term, lessee shall develop the acreage retained
    hereunder as a reasonably prudent operator, but discharging the
    obligation, it shall in no event be required to drill more than one
    well per 40 acres of the area retained hereunder and capable of
    producing oil in paying quantities and one well per 640 acres plus
    an acreage tolerance not to exceed 10% of 640 acres of the area
    retained hereunder and capable producing gas or other minerals in
    paying quantities.  If after the expiration of the primary term,
    lessor considers that operations or not at any time being conducted
    in compliance with this lease, lessor shall notify lessee in
    writing of the facts relied upon as constituting a breach hereof,
    and lessee, if in default, shall have 90 days after receipt of such
    notice in which to compliance with the obligations imposed by
    virtue of this instrument.

9.  Lessor hereby warrants and agrees to defend to the title and said
    land and agrees that lessee at its option discharge any tax,
    mortgage or any other of said land, either in whole or in part, and
    in event lessee does not, it shall be subrogated to such lien with
    right to enforce same and royalties accruing hereunder satisfying
    same.  Without impairment of lessee rights of the warranty in event
    of failure of title it is agreed if this lease covers a less
    interest in the oil, gas, sulphur, and or other minerals in all or
    in any part of said land, then the entire and undivided fee simple
    estate (where lessors interest herein specified or not), or no
    interest therein then the royalties and other monies accruing from
    any part as to which the lease covers less than such full interest,
    shall be paid only in the proportion which the interest therein, if
    any, covered by this lease, bears to the whole and undivided fee
    simple estate therein.  All royalty interest covered by this lease
    (whether or not owned by lessor) shall be paid be paid out of the
    royalty provided.  Should any one or more of the parties named
    above as lessor's fail to execute this lease it shall nevertheless
    be binding upon the party or parties executing the same.

10. Should Lessee be prevented from complying with any express or
    implied covenants of this lease, from conducting drilling or
    reworking operations thereon or from producing any oil, gas or
    other minerals therefrom by reason s of scarcity or of inability to
    obtain or to use equipment or material, or  by oppression of force
    majeure, and federal or state law, or any other rule or regulation
    of governmental authority, then while so prevented, lessee's
    obligation to comply with such covenant shall be suspended and the
    lessee shall not be liable in damages for failure to comply
    therewith; and this lease shall be extended while and so long as
    lessee is prevented by any such cause from conducting drilling on
    or from reworking operations producing oil and gas from the lease
    premises; and the time while lessee is so prevented shall not be
    counted against lessee, anything in this lease to the contrary not
    withstanding.

IN WITNESS WHEREOF, this instrument is executed on the date first
above written

s/s Margaret Ruth Baker                           s/s Roy William Baker, Jr.
Margaret Ruth Baker, Individually                 Roy William Baker, Jr.,
                                                  Individually and
                                                  Executor and Trustee of the
                                                  Roy W. Baker Sr.

STATE OF TEXAS
COUNTY OF EDWARDS

This instrument was acknowledged before me on the 12th day of June, 2001

s/s Charles W. Carson III
Notary Public, State of Texas
  Notary's name (printed):  Charles W. Carson III
  Notary's commission expires:  5-9-2005
  (Roy William Baker, Jr.)
STATE OF TEXAS
COUNTY OF BEXAR

This instrument was acknowledged before me on the 22 day of June, 2001

s/s Kassandra Walski
     Notary Public, State of Texas
     Notary's name (printed)
     Notary's commission expires:  June 30, 2004
     (Margaret Ruth Baker)

                                 "EXHIBIT A"

"To Oil and Gas Lease dated May 27, 2001, Roy William Baker, Jr.,
Individually and as" "Trustee, et al, as Lessor, to Ness Energy International,
Inc., as Lessee."

Abstract #    Certificate   Survey  Original Grantee       Description

3120           4/1196               8 G.C.&S.F. Ry. Co.    All of the East
                                                           246.13 ac.
1035           4/1196               7-BR G.C.&S.F. Ry. Co. 701.2 acres - BR
1973           4/1383               26 G.C.&S.F. Ry. Co.   All of the South
                                                           40.58 acres
2716           1/617                44 B.S.&F.             167.54 ac
2421           1/619                48 B.S.&F.             All of the
                                                           South 317.53 ac.
1321             151                7 T.C. Ry. Co.         All of the
                                                           North & West
                                                           180 ac.
1825             1462               8 E.L. & R.R. Ry. Co.  All of the
                                                           West 591.0 ac.
 836             1463               9 E.L. & R.R. Ry. Co.  469.5 acres
2975             1463              10 E.L. & R.R. Ry. Co.  14.0 acres
 837             1464              11 E.L. & R.R. Ry. Co.  148.58 acres
1351           28/110              13 Wash. Cnty. Ry. Co.  All of the S/2
                                                           being 320
                                                          "acres, more or less"
1686           28/110              14 Wash. Cnty. Ry. Co.  593.7 acres
2230            1/614              38 B.S.&F.              All of the
                                                           South 158.4 ac.
 713            1/616              41 B.S.&F.              161.66 acres
2810            1/616              42 B.S.&F.              400.0 acres
 716            1/619              47 B.S.&F.              640.0 acres
 717            1/620              49 B.S.&F.              396.75 ac.
2085            1/620              50 B.S.&F.              643.0 ac.EXHIBIT 10.1

                                   OIL AND GAS LEASE

AGREEMENT, Made and entered into the 10th day of January 2002, by and
between AMD Property Company, LTD. hereinafter called lessor (whether
one or more), and NESS ENERGY INTERNATIONAL, INC. hereinafter called
lessee:

WITNESSETH:  That the said lessor, for in consideration of TEN AND
NO/100's ($10.00) Dollars,cash in hand paid, the receipt of which is hereby
acknowledged, and of the covenants and agreements hereinafter contained on the
part of lessee to be paid, kept and performed, has granted, demised, leased
and let, and by these presents does grant, lease and let unto the
said lessee for the sole and only purpose of exploring, drilling,
mining, and operating for oil and gas and of laying pipe lines and
building tanks, power stations and structures thereon to produce,
save and take care of said products, all that certain tract of land
situated in the county of  PARKER, State of Texas described as follows, to wit:

SEE ATTACHED EXHIBIT A FOR DESCRIPTION

SEE EXHIBIT B FOR ADDITIONAL PROVISIONS

IT IS AGREED THAT A UNIT OR UNITS IF CREATED UNDER PROVISIONS HEREOF,
PRODUCTION, DRILLING OR REWORKING OPERATIONS ON SAID UNIT OR UNITS
SHALL NOT BE EFFECTIVE TO MAINTAIN THIS LEASE IN FORCE AS TO ACREAGE
OUTSIDE OF SUCH UNIT OR UNITS BEYOND THE END OF THE PRIMARY TERM.

IT IS UNDERSTOOD THAT A PORTION OF THE PROPERTY IS RESTRICTED BY A
NON DRILL AGREEMENT ON THE SURFACE AND THIS LEASE IS MADE SUBJECT TO
THAT LIMITATION ON THAT PART SO RESTRICTED.

Notwithstanding any particular description, it is nevertheless the
intention of lessor to include within this lease, and he does hereby
lease, not only the land so described but also any and all other land
owned or claimed by lessor is the herein named survey or surveys, or
in adjoining surveys, and adjoining the herein described land up to
the boundaries of the abutting landowners.

It is agreed that this lease shall remain in force for a term of
THREE years from this date, said term being hereinafter called
"Primary Term," and as long thereafter as oil or gas, or either of
them is produced from said land by the lessee.

In consideration of the premises the said lessee covenants and agrees:

1st .  To deliver to the credit of lessor, free of cost, in the pipe
line to which lessee may connect its or his wells, the equal one-
eighth part of all oil produced and saved from the leased premises.

2nd.  To pay to lessor, as royalty for gas from each well where gas
only is found, while the same is being sold or used off of the
premises, one-eighth of the market price at the wells of the amount
so sold or used, and where such gas is not so sold or used lessee
shall pay to lessor $50.00 per annum as royalty from each of such
wells and while such royalty is so paid such well shall be held to be
a producing well under the above paragraph setting forth the primary
term hereof.  Lessor may have gas free of charge from any gas well on
the leased premises for all stoves and inside lights in the principal
dwelling house on said land during the time by making lessor's own
connections with the well at lessor's own risk and expense.

3rd.  To pay lessor as royalty for gas produced from any oil and well
and used by lessee for the manufacture of gasoline, one-eighth of the
market value of such gas.  If such gas is sold by lessee, then lessee
agrees to pay lessor, as royalty, one-eighth of the net proceeds
derived from the sale of said casinghead gas at the wells.

If no well be commenced on said land on or before the 10th day of
January, 2004, this lese shall terminate as to both parties.

If, at the expiration of the primary term of this lease, oil or gas
is not being produced on the leased premises, but lessee is then
engaged in drilling for oil or gas, then this lease shall continue in
force so long as drilling operations are being continuously
prosecuted on the lease premises; and drilling operations shall be
considered prosecuted if not more than sixty (60) days shall elapse
between the completion or abandonment of one well and the beginning
of operations for the drilling of a subsequent well.  If oil or gas
shall be discovered and produced from any such well or wells drilled
or being drilled at or after the expiration of the primary term of
this lease, this lease shall continue in force so long as oil or gas
shall be produced from the leased premises.

It is specially agreed that in the event that oil or gas is being
produced or is obtained from said premises after the expiration of
the primary term hereof and said production shall for any reason
cease or terminate, lessee shall have the right at any time within
ninety (90) days from this cessation of such production to resume
drilling operations in the effort to make said leased premises again
produce oil or gas, in which event this lease shall remain in force
so long as such operations are continuously prosecuted, as defined in
the preceding paragraph, and if they result in production, of oil or
gas, so long thereafter as oil or gas is produced from the premises.

If said lessor owns a less interest in the above described land the
entire and undivided fee simple estate or no Interest therein, then
the royalties and rentals herein provided for shall be paid the said
lessor only in proportion which lessor's interest, if any, bears to
the whole and undivided fee.

Lessee shall have the right to use, free of cost, gas, oil and water
produced on said land for all operations thereon, except from water
wells of lessor.  When requested by lessor, lessee shall bury pipe
line below plow depth.  No well shall be drilled nearer than 200 feet
to the house or barn now on said premises without the written consent
of the lessor.  Lessee shall pay for damages caused by all operations
to growing crops on said land.  Lessee shall have the right at any
time to remove all machinery and fixtures placed on said premises,
including the right to draw and remove casing.

If the estate of either party herein is assigned-and the privilege of
assigning in whole or in part is expressly allowed - the covenants
hereof shall extend to their heirs, executors, administrators,
successors, or assigns, but no change in the ownership of the land or
assignment of rentals or royalties shall be binding on the lessee
until after the lessee has been furnished with a written transfer or
assignment, or a certified copy thereof; and it is hereby agreed that
in the event this lease shall be assigned as to a part or as in parts
of the above described lands and assigns or assignees of such part or
parts shall fall or make default in the payment of the proportionate
part of the rents due from him or them, such default shall and
operate to defeat or effect this lease so far as it covers a part or
parts of said land upon which the said lessee or any assignees
thereof shall make due payment of said rental.

Lessee shall have the exclusive right to build, operate and maintain
pits, reservoirs, pickup stations and plants for the purpose of
picking up and conserving the waste oil that flows down the creeks,
ravines and across the land embraced in this lease, whether said oil
is produced from land covered by this lease or other lands, and
lessor shall be entitled to receive the royalty hereinbefore reserved
on all such oil so saved.

In case of cancellation or termination of this lease for any cause,
lessee shall have the right to retain under the terms hereof twenty
(20) acres of land around each oil or gas well producing, being
worked on or drilling hereunder (as long as such operations are
continued in good faith) such tract to be designated by lease in as
near a square form as practicable.

In the event lessor considers that lessee has not complied with all
its obligations hereunder, both express and implied, before
production has been secured or after production has been accrued,
lessor shall notify lessee in writing, setting out specifically in
what respects lessee has breached this contract.  Lessee shall then
have sixty (60) days after receipt of said notice within which to
meet or commence to meet all or any part of the breaches alleged by
lessor.  The service of said notice shall be precedent to the
bringing of any action by lessor on said lease for any cause, and no
such action shall be brought until the lapse of sixty (60) days after
service of such notice on lessee.  Neither the service of said notice
nor the doing  of any acts by lessee aimed to meet, all or any of the
alleged breaches shall be deemed an admission or presumption that
lessee has failed to perform all of its obligations hereunder.

This to the minerals vested in grantee under this grant shall not end
or revert to grantor until there is a complete, absolute, and
intentional abandonment by grantee of each and all of the purposes,
expressed or implied, of this grant and every part and parcel of the
premises described in this grant.

Lessor hereby agrees that the lessee shall have the right at any time
to redeem for lessor by payment any mortgages, taxes or other liens
or interest and other charges on the above described lands in the
event of default which may become due under this lease.

All express or implied covenants of this lease shall be subject to
all Federal and State laws, Executive orders, rules or regulations
and this lease shall not be terminated, in whole or in part, nor
lessee held liable in damages for failure to comply therewith, if
compliance is prevented by, or if such failure is the result of any
such law, order, rule or regulation.  And if from such cause lessee
is prevented from conducting drilling or reworking operations on or
producing oil or gas from, the leased premises, the time while lessee
is so prevented shall not be counted against lessee, and this lease
shall be extended for a period of time equal to that during which
such lessee is so prevented from conducting drilling or reworking
operations on or producing oil or gas from, such leased premises,
notwithstanding any other provision hereof.

Lessor hereby acknowledges that he has received from lessee for his
own use and reference a true and correct copy of this lease.

IN TESTIMONY WHEREOF,  we sign, this 10th day of January 2002

AMD Property Company, LTD.
By:  AMD Management, LLC, General Partner
By:  s/s  Bill Knight,  President

ACKNOWLEDGMENT

STATE OF TEXAS
COUNTY OF PARKER

Before me, the undersigned authority, on this day personally appeared
Bill Knight, President of AMD Management, LLC, General Partner, known
to me to be the person whose name 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 10th day of January, 2002.

s/s  Lana A. Love
Notary Public, in and for the State of Texas
My Commission Expires:  08-24-02

                                      EXHIBIT A

A 159.70 Acre tract of land, being a part of the Thomas Sexton
Survey, Abstract 1893, Parker County, Texas and being more fully
described by metes and bounds as follows:

BEGINNING at a fence post in the WBL of a County Road, said point
being N 89 deg. 10 min. 32 sec, W., 20.0 ft. from the N. E. Corner of
the Thomas Sexton Survey, Abstract 1893;

THENCE, with the general line of a fence N 89 deg. 10 min, 32 sec.
W., 2620.0 ft. to a fence post in the EBL of another County road, for
a corner;

THENCE, with the EBL of the above mentioned County Road and with the
general line of a fence SOUTH, 2673.50 ft. to a fence post for a corner;

THENCE, with the general line of a fence S 89 deg. 40 min. 43 sec.
E., 1150.94 ft. to a steel rod for a corner;

THENCE, with the general line of a fence S 89 deg. 26 min. 14 sec.
E., 1452.73 ft. to a fence  post in the WBL of first mentioned County
Road, for a corner;

THENCE, with the WBL of said County Road and with the general line of
a fence N 00 deg. 20 min. 53 sec. E., 2656.57 ft. to the place of
beginning and containing 159.70 Acres of land, more or less.

                                     EXHIBIT B

ADDITIONAL PROVISIONS

NOTHWITHSTANDING THE PRINTED PROVISIONS OF THIS LEASE, IT IS
SPECIFICALLY AGREED AS FOLLOWS:

A)  LESSEE SHALL PAY TO LESSOR, FOR EACH LOCATION, PRIOR TO DRILLING
    ANY WELL $500.00 IN RANGE LAND OR GRAZING PASTURE, $1,000.00 IN
    IMPROVED PASTURES OR CULTIVATED FIELDS.  AS PAYMENT FOR ACTUAL
    DAMAGES TO THE SURFACE OF LAND AND/OR CROPS GROWING THEREON.

B)  IF AVAILABLE LESSEE SHALL PAY LESSOR $1,000.00 FOR WATER FOR
    DRILLING OPERATIONS, PROVIDED THAT WATER IS ABUNDANT ENOUGH FOR THE
    COMPLETION OF THE DRILLING OPERATION.

C)  PRIOR TO THE DRILLING OF A WELL, THE LANDOWNER SHALL BE NOTIFIED
    AND ADVISED AS TO THE PROPOSED LOCATION OF THE WELL.  IN THE EVENT
    LESSOR OBJECTS TO THE PROPOSED LOCATION, LESSEE AND LESSOR WILL
    JOINTLY RESOLVE THE LOCATION, THE CONSENT FOR WHICH THE LESSOR WILL
    NOT UNDULY WITHHOLD.

D)  IT IS AGREED THAT IF A UNIT OR UNITS IS CREATED UNDER PROVISIONS
    HEREUNDER, PRODUCTION, DRILLING OR REWORKING OPERATIONS ON SAID
    UNIT OR UNITS SHALL NOT BE EFFECTIVE TO MAINTAIN THIS LEASE IN
    FORCE AS TO ACREAGE OUTSIDE OF SUCH UNIT OR UNITS BEYOND THE END OF
    THE PRIMARY TERM.

E)  WHEREVER, THE FRACTION ONE-EIGHTH APPEARS IN THE PRINTED FORM, IT
    IS HEREBY AMENDED TO READ ONE-FIFTH (1/5).

F)  THIS LEASE SHALL NOT BE CONTINUED IN FORCE BY REASON OF THE SHUT-IN
    WELL PROVISION FOR ANY SHUT-IN PERIOD OF MORE THAN TWO CONSECUTIVE YEARS.

G)  ALL ROYALTIES ACCRUING UNDER THIS LEASE SHALL NEVER BEAR, EITHER
    DIRECTLY OR INDIRECTLY; ANY PART OF THE COST OR EXPENSES OF
    PRODUCTION, SEPARATION, GATHERING, DEHYDRATION, COMPRESSION,
    TRANSPORTATION, TRUCKING, PROCESSING, TREATMENT, STORAGE, OR
    MARKETING OF THE OIL OR GAS PRODUCED FROM THE LEASED PREMISES.

H)  LESSEE SHALL FILL TO AT LEAST TEN (10) INCHES ABOVE GROUND LEVEL
    ALL SLUSH PITS, CELLARS AND CIRCULATION PITS WITHIN FIFTEEN (15)
    DAYS AFTER COMPLETION OF EACH WELL, OR IF THE PITS OR WELL CELLARS
    ARE TOO WET TO COVER THEY MAY BE FENCED BY LESSEE WITH A
    SUBSTANTIAL NET WIRE FENCE UNTIL THEY ARE DRY ENOUGH TO BE FILLED
    AT WHICH TIME THEY SHALL BE FILLED.  NO PITS OTHER THAN SMALL BS
    PITS NOT LARGER THAN TEN (10) FEET BY THIRTY (30) FEET (WHICH SHALL
    BE SECURELY FENCED) AS PROVIDED ABOVE, AT EACH PRODUCING WELL SHALL
    BE MAINTAINED ON THE LEASED PREMISES.

I)  ANY OF LESSOR'S SERVICE ROADS NOW LOCATED ON THE LEASED PREMISES OR
    ON LESSOR'S ADJACENT PREMISES MAY BE USED BY LESSEE FOR LESSEE'S
    OPERATIONS ON THE LEASED PREMISES ONLY, BUT THEY SHALL BE KEPT IN
    GOOD REPAIR BY LESSEE DURING OPERATIONS ON THE PROPERTY, THE ROADS
    SHALL BE GRADED AND SMOOTHED OVER AND LEFT IN GOOD REASONABLE
    CONDITION.  IF TO OBTAIN INGRESS AND EGRESS FROM THE LEASED
    PREMISES IT BECOMES NECESSARY FOR LESSEE TO CUT IN ANY FENCE OF
    LESSOR, LESSEE SHALL INSTALL AND MAINTAIN SUITABLE AND WELL-BUILT
    GATES OR CATTLEGUARDS INSTALLED TO LESSOR'S SATISFACTION, WHICH
    GATES AND CATTLEGUARDS SHALL UPON THE TERMINATION OF THIS LEASE FOR
    ANY CAUSE, BECOME THE PROPERTY OF THE LESSOR.  IF ANY FENCES OF
    LESSOR ARE TO BE CUT FOR THE PURPOSE OF INSTALLING CATTLEGUARDS OR
    GATES BEFORE THE FENCES ARE CUT, SUBSTANTIAL H-BRACES SHALL BE
    INSTALLED ON EACH SIDE OF THE PLACE TO BE CUT SO AS NOT TO REMOVE
    STRETCH FROM THE FENCE WIRES.  IT IS UNDERSTOOD AND AGREED THAT
    LESSEE MAY INSTALL HEAVY DUTY CATTLEGUARDS DURING DRILLING
    OPERATIONS WHICH MAY BE REMOVED AFTER THE COMPLETION OF OPERATIONS,
    AND IF SUCH ARE REMOVED, SUBSTANTIAL GATES WILL BE PLACED IN THE
    CUTS MADE IN LESSOR'S FENCES OR THE OPENING WILL BE SECURELY
    REFENCED IN AS GOOD CONDITION AS THE FENCE WAS IN PRIOR TO CUTTING.

SIGNED FOR IDENTIFICATION:

s/s     Bill Knight

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