Document:

EX-4.3

 

EXHIBIT 4.3

TRUST CONVEYANCE

Dated February 28, 1989

Between

THE STANDARD OIL COMPANY

(“Grantor”)

and

BP PRUDHOE BAY ROYALTY TRUST

(“Grantee”)

RECORD THIS INSTRUMENT IN THE BARROW RECORDING DISTRICT.

THE STANDARD OIL COMPANY is known in Alaska as SOCO INC.; please index both of
these names in the Grantor Index. BP PRUDHOE BAY ROYALTY TRUST should be indexed
in the Grantee Index.

THE LANDS AFFECTED BY THIS INSTRUMENT ARE DESCRIBED IN EXHIBIT A ATTACHED HERETO.

ADDRESSES OF THE PARTIES TO THIS INSTRUMENT ARE SET FORTH IN SECTION 4.2 OF THIS INSTRUMENT.

	 	 	 
	RETURN THIS INSTRUMENT TO:

	 	GUESS & RUDD
	 

	 	510 L Street, Suite 700
	 

	 	Anchorage, Alaska 99501
	 

	 	Attn: Joseph J. Perkins, Jr.

 

 

TRUST CONVEYANCE

     THIS CONVEYANCE, dated the 28th day of February, 1989, between The Standard
Oil Company, an Ohio corporation known in Alaska as SOCO INC. (Grantor) and the
BP Prudhoe Bay Royalty Trust, a business trust under the Delaware Trust Act
administered under the terms of the BP Prudhoe Bay Royalty Trust Agreement among
The Standard Oil Company, BP Exploration (Alaska) Inc., The Bank of New York,
Trustee, and F. James Hutchinson, Co-trustee (Grantee).

WITNESSETH:

     WHEREAS, Grantor is the owner of a certain Royalty Interest covering
certain lands and leases situated in the Prudhoe Bay area of the State of Alaska
more fully described in Exhibit A to this Conveyance; and

     WHEREAS, Grantor desires to transfer and convey the Royalty Interest unto
Grantee as of the Effective Date herein provided; and

     WHEREAS, Grantee desires to accept the Royalty Interest as of the Effective
Date herein provided;

     NOW, THEREFORE, in consideration of the premises and the mutual promises
and agreements herein contained, the parties hereto agree as follows:

SECTION ONE

DEFINITIONS

     For the purposes of this Conveyance, the following words, terms and phrases
shall have the following meanings:

     Conveyance shall mean this Trust Conveyance.

     Effective Date shall mean 12:01 o’clock A.M. Alaska Time Zone on February
28, 1989.

     Grantee shall mean the BP Prudhoe Bay Royalty Trust while it owns all or
any part of or interest in the Royalty Interest and any other Person or Persons
who acquire legal title to all or any part of or interest in the Royalty
Interest.

     Grantor shall mean The Standard Oil Company, an Ohio corporation known in
Alaska as SOCO Inc.

     Leases shall have the meaning stated in the Overriding Royalty Conveyance.

 

 

     Overriding Royalty Conveyance Grantee shall have the same meaning as the
definition of “Grantee” set forth in the Overriding Royalty Conveyance.

     Overriding Royalty Conveyance Grantor shall have the same meaning as the
definition of “Grantor” set forth in the Overriding Royalty Conveyance.

     Overriding Royalty Conveyance shall mean that certain Overriding Royalty
Conveyance dated February 27, 1989, executed and delivered by BP Exploration
(Alaska) Inc., as Grantor, and The Standard Oil Company, as Grantee, covering
certain lands and leases situated in the Prudhoe Bay area of the State of Alaska
more particularly described in Exhibit A to the Overriding Royalty Conveyance. A
copy of the Overriding Royalty Conveyance is attached hereto as Exhibit B. The
Overriding Royalty Conveyance is recorded in Book 54, Pages 469-495, Barrow
Recording District.

     Person shall mean an individual, corporation, partnership, trust, estate or
other entity, organization or association.

     Royalty Interest shall mean the overriding royalty interest conveyed to
Overriding Royalty Conveyance Grantee by the Overriding Royalty Conveyance.

     Subject Interests shall have the meaning stated in the Overriding Royalty
Conveyance.

SECTION TWO

CONVEYANCE

     Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and
other good and valuable consideration to it paid by Grantee, the receipt and
sufficiency of which are hereby acknowledged, by these presents does hereby
bargain, sell, grant, convey, transfer, assign, set over and deliver unto
Grantee, its successors and assigns the Royalty Interest and all rights and
benefits to which Overriding Royalty Conveyance Grantee is entitled under or
pursuant to the Overriding Royalty Conveyance (including, without limitation,
the rights and benefits arising out of the covenants, representations,
warranties and indemnities made by Overriding Royalty Conveyance Grantor to or
for the benefit of Overriding Royalty Conveyance Grantee pursuant to the
Overriding Royalty Conveyance), to have and to hold forever.

SECTION THREE

COVENANTS AND WARRANTIES

     Grantor hereby covenants and warrants that it is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Ohio, is qualified to transact business and is in good standing in the State of
Alaska, and is qualified with the Alaska Department of Natural Resources to hold
interests in state oil and gas leases; that it has the legal right and authority
to bargain, grant, sell, convey, transfer, assign, set over and deliver the
Royalty Interest to Grantee and that it has legal right and authority

2

 

to execute, deliver and perform this Conveyance; that the execution, delivery
and performance of this Conveyance by it (i) does not require the consent of any
other Person; (ii) does not require any action by or filing with any
governmental body, agency, or official that has not been accomplished, other
than the filings which may be required under the terms of the Leases and the
terms of the applicable statutes of the State of Alaska and the administrative
regulations of the Alaska Department of Natural Resources, which filings will be
promptly made by Grantor upon the execution of this Conveyance; and, (iii) will
not violate or conflict with any law, statute, regulation, agreement, judgment,
injunction, order, decree or other instrument to which Grantor is subject or is
party or by which Grantor or the Leases or the Subject Interests are bound; and
that this Conveyance is a valid and binding agreement of Grantor, enforceable
against Grantor in accordance with its terms. Grantor hereby binds itself and
its successors and assigns to forever defend the title to the Royalty Interest
unto Grantee and its successors and assigns against every Person claiming the
same or any part thereof by, through or under Grantor, but not otherwise. This
Conveyance is made with full substitution and subrogation of Grantee in and to
all covenants, representations and warranties by others heretofore given or made
in respect of the Leases or the Subject Interests.

SECTION FOUR

MISCELLANEOUS

     Section 4.1 Further Assurances. Should any additional instruments of
assignment or conveyance be required to describe more specifically any interests
subject hereto, or to vest in Grantee the benefit of all covenants,
representations, warranties and indemnities by others heretofore given or made
in respect of the Royalty Interest or the Leases or the Subject Interests
(including, without limitation, those made by Overriding Royalty Conveyance
Grantor to or for the benefit of Overriding Royalty Conveyance Grantee pursuant
to the Overriding Royalty Conveyance), Grantor agrees to execute and deliver the
same. Also, if any other or additional instruments are required in connection
with the transfer of the Royalty Interest to comply with applicable law or
regulations, Grantor will execute and deliver the same.

     Section 4.2 Notices. Any notice, request, demand, report, statement or
other instrument which may be required or permitted to be given to any party
hereto or other Person succeeding to any interest of a party hereto shall be
deemed sufficiently given if in writing and delivered to such party or Person or
to an officer of such party or Person or deposited in the United States mail in
a sealed envelope, first class mail, with postage prepaid, addressed to such
party or Person at its or his address stated in this Conveyance, or at such
other address as the party or Person to be addressed shall have designated by
written notice to each other party or Person. Each party’s proper address shall
be deemed to be that set forth herein below until such party gives to the other
party, in the manner above prescribed, notice of a new address, after which such
address shall be deemed the proper address until changed in like manner. Notice
shall be deemed given when actually received by the party or Person to which
such notice was intended.

	 	 	 	 	 
	 

	 	Grantor:
	 	The Standard Oil Company
	 

	 	 	 	200 Public Square
	 

	 	 	 	Cleveland, Ohio 44114-2375

3

 

	 	 	 	 	 
	 

	 	Grantee:
	 	BP Prudhoe Bay Royalty Trust,
	 

	 	 	 	The Bank of New York, Trustee
	 

	 	 	 	21 West Street, 12th Floor
	 

	 	 	 	New York, New York 10286
	 

	 	 	 	Attention: Corporate Trust Department

     Section 4.3 Binding Effect. This Conveyance and all of the rights and
obligations hereunder shall bind and inure to the benefit of the successors and
assigns of Grantor and Grantee.

     Section 4.4 Headings for Convenience. The headings used in this Conveyance
are inserted for convenience only and shall be disregarded in construing this
Conveyance.

     Section 4.5 Counterparts. This Conveyance may be executed in several
original counterparts. Each such counterpart shall for all purposes be deemed an
original, and all such counterparts shall constitute but one and the same
Conveyance.

     Section 4.6 Governing Law. The validity, effect and construction of this
Conveyance shall be governed by the laws of the State of Alaska.

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this Conveyance to be
duly executed as of the day and year first written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	GRANTOR:	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	The Standard Oil Company	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ J.M. Cesarik
 

	 	 	 	By
	 	/s/ J.H. Ross
 

	 	 
	J.M. Cesarik,	 	 	 	J.H. Ross, Chairman and	 	 
	Corporate Secretary	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GRANTEE:	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	BP PRUDHOE BAY ROYALTY TRUST	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By The Bank of New York	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ David G. Sampson

	 	 	 	By
	 	/s/ W.N. Gitlin	 	 
	 

	 	 	 	 	 	 	 	 
	David G. Sampson	 	 	 	Walter N. Gitlin	 	 
	Assistant Vice President	 	 	 	Assistant Vice President	 	 

ACKNOWLEDGMENT

	 	 	 
	STATE OF OHIO

	 	 )
	 

	 	 )    ss
	COUNTY OF CUYAHOGA

	 	 )

     Before me, a notary public, in and for said county, personally appeared
J.H. Ross and J.M. Cesarik, known to me to be the persons who, as Chairman and
Chief Executive Officer and Corporate Secretary, respectively, of The Standard
Oil Company, the corporation which executed the foregoing instrument, signed
the same, and acknowledged to me that they did so sign said instrument in the
name and upon behalf of said corporation as such officers, respectively; that
the same is their free act and deed as such officers, respectively, and the
free and corporate act and deed of said corporation; that they were duly
authorized thereunto by its board of directors; and that the seal affixed to
said instrument is the corporation seal of said corporation. In testimony
whereof, I have hereunto subscribed my name, and affixed my official seal, at
Cleveland, Ohio, this 15th day of February, 1989.

	 	 	 	 	 
	[SEAL]

	 	/s/ JoAnn Motuza
 

Notary Public in and for Ohio
	 	 
	 
	 	 	 	 
	 

	 	My Commission Expires:	 	 

JoANN MOTUZA

Notary Public, State of Ohio

Recorded in Cuyahoga County

My Comm. Expires 9-14-92

	 	 	 
	STATE OF NEW YORK

	 	 )
	 

	 	 )    ss
	COUNTY OF NEW YORK

	 	 )

     Before me, a notary public, in and for said county, personally appeared
Walter N. Gitlin and David C. Sampson, known to me to be the persons who, as
Assistant Vice Presidents of The Bank of New York, the corporation which
executed the foregoing instrument, signed the same, and acknowledged to me
that they did so sign said instrument in the name and upon behalf of said
corporation as such officers; that the same is their free act and deed as such
officers, and the free and corporate act and deed of said corporation; that
they were duly authorized thereunto by its board of directors; and that the
seal affixed to said instrument is the corporation seal of said corporation.
In testimony whereof, I have hereunto subscribed my name, and affixed my
official seal, at New York, New York this 23rd day of February, 1989.

	 	 	 	 	 
	 

	 	/s/ Virginia Barazotti
 

Notary Public in and for New York
	 	 
	 
	 	 	 	 
	 

	 	My Commission Expires:	 	 

VIRGINIA BARAZOTTI

Notary Public, State of New York

No. 42-4734842

Qualified in Queens County

Certificate filed in New York County

Commission Expires Nov. 30, 1989

5

 

EXHIBIT A

TRUST CONVEYANCE

STATE OF ALASKA

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ORCG’s	 	Recorded
	PBU	 	Lease	 	Lands	 	Working	 	Book/
	Tract	 	Serial No.	 	Description	 	Interest*	 	Page**
	16	 	ADL-25637	 	Secs. 13,24
	 	 	50	%	 	42/609
	 	 	 	 	T12N-R10E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	47	 	ADL-28260	 	Secs. 1,2,11,12
	 	 	100	%***	 	52/40
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	25	 	ADL-28277	 	Secs. 26,35,36
	 	 	100	%***	 	52/44
	 	 	 	 	T12N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	24	 	ADL-28278	 	Secs. 27,28,33,34
	 	 	100	%***	 	52/50
	 	 	 	 	T12N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	23	 	ADL-28279	 	Secs. 29,30,31,32
	 	 	100	%***	 	52/56
	 	 	 	 	T12N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	44	 	ADL-28280	 	Secs. 1,2,11,12
	 	 	100	%***	 	52/62
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	45	 	ADL-28281	 	Secs. 3,4,9,10
	 	 	100	%***	 	52/68
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	46	 	ADL-28282	 	Secs. 5,6,7,8
	 	 	100	%***	 	52/74
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	57	 	ADL-28283	 	Secs. 17,18,19,20
	 	 	100	%***	 	52/80
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	58	 	ADL-28284	 	Secs. 15,16,21,22
	 	 	100	%***	 	52/86
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	59	 	ADL-28285	 	Secs. 13,14,23,24
	 	 	100	%***	 	52/92
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	76	 	ADL-28286	 	Secs. 25,26,35,36
	 	 	100	%***	 	52/98
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	29/178
	 	 	 	 	 
	 	 	 	 	 	 
	77	 	ADL-28287	 	Secs. 27,28,33,34
	 	 	100	%***	 	47/235
	 	 	 	 	T11N-R13E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	60	 	ADL-28305	 	Secs. 17,18,19,20
	 	 	100	%***	 	47/223
	 	 	 	 	T11N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ORCG’s	 	Recorded
	PBU	 	Lease	 	Lands	 	Working	 	Book/
	Tract	 	Serial No.	 	Description	 	Interest*	 	Page**
	74	 	ADL-28309	 	Secs. 27,28,33,34
	 	 	100	%***	 	42/336
	 	 	 	 	T11N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	75	 	ADL-28310	 	Secs. 29,30,31,32
	 	 	100	%***	 	47/241
	 	 	 	 	T11N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	90	 	ADL-28311	 	Secs. 1,2,11,12
	 	 	100	%***	 	47/229
	 	 	 	 	T10N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	89	 	ADL-28312	 	Secs. 3,4,9,10
	 	 	100	%***	 	52/104
	 	 	 	 	T10N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	101	 	ADL-28315	 	Secs. 13,14,23,24
	 	 	100	%***	 	52/110
	 	 	 	 	T10N-R14E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	38	 	ADL-28320	 	Secs. 1,2,11,12
	 	 	100	%***	 	47/199
	 	 	 	 	T11N-R15E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	100	 	ADL-28330	 	Secs. 17,18,19,20
	 	 	100	%***	 	52/116
	 	 	 	 	T10N-R15E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	99	 	ADL-28331	 	Secs. 15,16,21,22
	 	 	100	%***	 	52/122
	 	 	 	 	T10N-R15E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	110	 	ADL-28333	 	Secs. 25,26,35,36
	 	 	100	%***	 	42/341
	 	 	 	 	T10N-R15E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	108	 	ADL-28335	 	Secs. 29,30,31,32
	 	 	100	%***	 	52/128
	 	 	 	 	T10N-R15E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	66	 	ADL-28339	 	Secs. 17,18,19
	 	 	100	%***	 	47/193
	 	 	 	 	T11N-R16E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	69	 	ADL-28343	 	Secs. 30,31,32
	 	 	100	%***	 	42/356
	 	 	 	 	T11N-R16E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	111	 	ADL-28349	 	Secs. 29,30,31
	 	 	100	%***	 	42/370
	 	 	 	 	T10N-R16E, UM
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	31	 	ADL-34630	 	Secs. 25,26,35,36
	 	 	100	%***	 	47/205
	 	 	 	 	T12N-R15E, UM
	 	 	 	 	 	 

 

			
	*	 	“OCRG” means Overriding Royalty Conveyance Grantor.
	 
	**	 	All book and page references are to the lease records of the Noatak-Kobuk
Recording District, except: (i) Lease ADL 25637 is recorded in the Miscellaneous
Records of the Fairbanks Recording District; and (iii) [sic] Lease ADL 28286 is
recorded both in the Lease Records of the Noatak-Kobuk

 

 

			
	 	 	Recording District (Book 52/page 98) and the Lease Records of the Fairbanks
Recording District (Book 29/page 178).
	 
	***	 	The interest of BP Exploration (Alaska) Inc. in these leases is subject to
the “Net Profits Royalty Interest” (excluding the “Lower Lower Net Profits
Royalty Interest”)(as said terms are defined in the Overriding Royalty
Conveyance).EX-4.4

 

EXHIBIT 4.4

[COMPOSITE COPY]

SUPPORT AGREEMENT

AMONG

THE BRITISH PETROLEUM COMPANY p.l.c.

AND

BP EXPLORATION (ALASKA) INC.

THE STANDARD OIL COMPANY

AND

BP PRUDHOE BAY ROYALTY TRUST

 

 

THIS SUPPORT AGREEMENT made as of February 28, 1989

	 	 	 
	AMONG

	 	THE BRITISH PETROLEUM COMPANY p.l.c. (“BP”), an English company
whose principal office is at Britannic House, Moor Lane, London EC2Y
9BU England,
	 
	 	 
	 

	 	BP EXPLORATION (ALASKA) INC., a Delaware corporation having its
principal office in Anchorage, Alaska (the “Company”),
	 
	 	 
	 

	 	THE STANDARD OIL COMPANY, an Ohio corporation having its principal
office in Cleveland Ohio (“SOC”),
	 
	 	 
	AND

	 	BP PRUDHOE BAY ROYALTY TRUST, a Delaware business trust (the
	 
	 	 
	 

	 	“Trust”), having The Bank of New York, a New York corporation,
authorized to do a banking business, as a Trustee (the “Trustee”),
under the BP Prudhoe Bay Royalty Trust Agreement, dated February 28,
1989, by and among SOC, the Company, the Trustee and a co-trustee
(the “Royalty Trust Agreement”).

WHEREAS

	1.	 	The Company and SOC are indirect, wholly-owned subsidiaries of BP; and
	 
	2.	 	SOC shall grant and convey to the Trust the Initial Royalty Interest

 

	 	 	 
	 
		 	in consideration of the issuance by the Trust, at SOC’s direction, of Trust
Units representing units of beneficial interest in the Trust; and
	 
	3.	 	In order to induce the initial purchasers of Trust Units to purchase such
Trust Units and in order to induce The Bank of New York and F. James
Hutchinson to act as trustees under the Royalty Trust Agreement, BP shall
provide financial support to the Company and SOC in meeting their
respective payment obligations under the Initial Royalty Interest, any
Additional Royalty Interests, the Royalty Trust Agreement and the
Conveyance to the Trust, the Trustee, the Transfer Agent and the Registrar
(in each case as defined in the Royalty Trust Agreement).
	 
	4.	 	The Trust, in consideration of the conveyance of the Initial Royalty
Interest to the Trust and the above-mentioned financial support of BP and
SOC, shall issue 21,400,000 Trust Units in connection with the
establishment of the Trust pursuant to the Royalty Trust Agreement and
accept the benefits of the financial support and guarantee which BP has
agreed to make available on the terms hereinafter contained.

NOW THEREFORE IT IS HEREBY AGREED as follows:

	1.	 	DEFINITIONS
	 
	 	 	In this Agreement, unless the context otherwise requires, the following
terms shall have the following meanings:

“Conveyance” means, collectively, the Overriding

-2-

 

Royalty Conveyance dated February 27, 1989 between the Company and SOC
conveying the Initial Royalty Interest to SOC, the Trust Conveyance
dated the date hereof between SOC and the Trust conveying the Initial
Royalty Interest to the Trust and any Additional Conveyance (as
defined in the Royalty Trust Agreement).

“Equivalent Financial Standing” means a Person having a rating
assigned to outstanding unsecured, unsupported long term debt from
Moody’s Investors Service of at least A3 or from Standard & Poor’s
Corporation of at least A- or an equivalent rating from at least one
nationally-recognized statistical rating organization (after giving
effect to the sale or transfer to such Person of all or substantial
all of the Company’s working interest in the PBU a the assumption by
such Person of all of the Company’s obligations under the Conveyance
and of all of BP’s obligations hereunder).

“PBU” means the Prudhoe Bay Unit, as defined in the Conveyance.

“Person” means any individual, corporation, partnership, trust, estate
or other entity, organization or association.

-3-

 

“Royalty Interests” means the Initial Royalty Interest and any
Additional Royalty Interests (in each case as defined in the Royalty
Trust Agreement) conveyed to the Trust pursuant to the Initial
Conveyance or any Additional Conveyance (in each case as defined in
the Royalty Trust Agreement.)

	2.	 	SCOPE OF UNDERTAKING
	 
	(a)	 	Subject to the terms hereof BP shall, within 30 days of notice to BP
pursuant to Article XI of the Royalty Trust Agreement, (i) cause the
Company to perform its payment obligations under the Royalty Interests
pursuant to the Conveyance and (ii) cause the Company and SOC to satisfy
their respective payment obligations to the Trustee, Transfer Agent and
Registrar and their respective payment obligation to the Trust under the
Royalty Trust Agreement (including without limitation, the obligation to
make payments as indemnification), including, in each case, without
limitation, contributing to the Company or SOC or causing to be contributed
to the Company or SOC by an affiliate of BP such funds as are necessary to
make such payments. BP’s obligations under the foregoing undertaking are
unconditional.
	 
	(b)	 	For purposes of BP’s obligations under this Support Agreement, no
assignment, sale, transfer, conveyance, mortgage or pledge or other
disposition of the Royalty

-4-

 

Interests shall relieve (i) the Company of its obligations under the
Royalty Trust Agreement or the Conveyance, (ii) SOC of its obligations
under the Royalty Trust Agreement or (iii) BP of its obligations under this
Support Agreement.

	3.	 	DURATION
	 
	 	 	This Agreement shall be deemed to have come into full force and effect on
the date first above written and shall continue thereafter until the
earlier of (a) the termination of the Royalty Interests and all obligations
of the Company under the Conveyance and of the Company and SOC under the
Royalty Trust Agreement or (b) all or substantially all of the Company’s
working interest in the PBU is sold or transferred to a transferee of
Equivalent Financial Standing in accordance with the provisions of Section
5(d) hereof.
	 
	4.	 	SUPPORT TO BE PROVIDED BY BP
	 
	 	 	Pursuant to BP’s undertaking described in Section 2 hereof BP shall make
available to the Company and SOC, and the Company and SOC shall receive
such financial support as the Company, SOC or the Trustee may from time to
time request from BP in writing.
	 
	5.	 	ASSIGNMENT AND DELEGATION
	 
	(a)	 	Neither BP nor the Company nor SOC shall transfer or assign its rights or
obligations under this Agreement without the prior written consent of the

-5-

 

		 	Trust.
	 
	(b)	 	Notwithstanding (a) above BP shall however be free to arrange for its
obligations hereunder to be performed by any affiliate of BP (with the
exception of the Company) provided that BP shall remain responsible for
ensuring that such obligations are performed in a timely manner.
	 
	(c)	 	The Company may sell or transfer all or part of its working interest in the
PBU, although such a transfer will not relieve BP of its responsibility to
ensure that the Company’s payment obligations with respect to the Royalty
Interests and under the Royalty Trust Agreement and the Conveyance are
performed.
	 
	(d)	 	BP shall be released from its obligation under the Agreement upon the sale
or transfer of all or substantially all of the Company’s working interest
in the PBU, if the transferee is of Equivalent Financial Standing and
unconditionally agrees to assume and be bound by BP’s obligation under this
Agreement in a writing in form and substance reasonably satisfactory to the
Trustee.
	 
	6.	 	ENFORCEABILITY*
	 
	 	 	This Agreement may be enforced by the Trustee, for the benefit of the
Trust, or for its own benefit or for the benefit of the Transfer Agent or
Registrar at any time when the Company or SOC has failed to pay amounts due
the Trust or

 

			
	*	 	Section 6 is as amended by a letter agreement dated May 8, 1989 among the
Trustee, BP, SOC and the Company.

-6-

 

the Trustee, individually, or as Trustee, or the Transfer Agent or
Registrar, as described in the Royalty Trust Agreement, or has otherwise
failed to perform its respective payment obligations under and pursuant to
the Royalty Interests or the Royalty Trust Agreement or the Conveyance.

Notwithstanding any other provision of this Agreement or the Royalty Trust
Agreement, the holder of any Trust Units shall have the right, which is
unconditional, to institute suit against BP for the enforcement of BP’s
obligation under Section 2 of this Agreement to cause the Company to
perform its payment obligations under the Royalty Interests pursuant to the
Conveyance.

BP agrees that upon the filing of any such suit to which the Trustee is not
already a party BP will give notice to the Trustee of the fact of such
filing as soon as reasonably practicable.

	7.	 	NOTICES

Any communications by a party to another shall be sufficiently made if
sent by post (by airmail where airmail is possible), postage paid, or by
telegraph, telex or facsimile to the address hereinafter specified and
shall be deemed to have been made when received.

Unless otherwise specified by not fewer than 15 days’ notice in writing
to the party in question, the address to which communications shall be
sent shall be:

	 	 	 
	BP -

	 	THE BRITISH PETROLEUM COMPANY p.l.c.
	 

	 	Britannic House, Moor Lane
	 

	 	London EC2Y 9BU, England
	 

	 	Attention: Secretary
	 
	 	 
	the Company -

	 	BP EXPLORATION (ALASKA) INC.
	 

	 	c/o BP AMERICA INC.
	 

	 	200 Public Square
	 

	 	Cleveland, Ohio 44114
	 

	 	Attention: Treasurer
	 
	 	 
	SOC -

	 	The Standard Oil Company
	 

	 	c/o BP America Inc.
	 

	 	200 Public Square
	 

	 	Cleveland, Ohio 44114
	 

	 	Attention: Treasurer
	 
	 	 
	the Trustee -

	 	The Bank of New York
	 

	 	21 West Street, 12th Floor
	 

	 	New York, New York 10286
	 

	 	Attention: Corporate Trust
	 

	 	                 Trustee Administration

-7-

 

	8.	 	SUBMISSION TO JURISDICTION
	 
	 	 	BP agrees that any legal suit, action or proceeding arising out of or based
upon this Agreement may be instituted in any state or Federal Court in the
Borough of Manhattan, The City of New York, New York, United States of
America, and waives, to the extent it may effectively do so, any objection
which it may have now or hereafter to the laying of the venue of any such
suit, action or proceeding, and irrevocably submits to the jurisdiction of
any such court in any such suit, action or proceeding. BP has designated
and appointed BP America Inc. (or any successor corporation) as BP’s
authorized agent to accept and acknowledge on its behalf in any such suit,
action or proceeding in any such court and agrees that service of process
upon said agent at its office at 667 Madison Avenue, 22nd Floor, New York,
New York 10021, attention of the General Counsel (or at such other address
in the Borough of Manhattan, The City of New York, as BP may designate by
written notice to the Company and the Trustee), and written notice of said
service to BP, mailed or delivered to it at its notice address specified in
Section 7 hereof, shall be deemed in every respect effective service of
process upon BP in any such suit, action or proceeding and shall be taken
and held to be valid personal service upon BP, whether or not BP shall then
be doing, or at any time shall have done, business within the State of New
York, and any such service of process shall be of the same force and
validity as if service were made upon BP according to the

-8-

 

laws governing the validity and requirements of such service in such State,
and waives all claim of error by reason of any such service. Said
designation and appointment shall be irrevocable until this Agreement shall
have been satisfied and discharged. BP agrees to take all action as may be
necessary to continue the designation and appointment of BP America Inc. or
any successor corporation in full force and effect so that BP shall at all
times have an agent for service of process for the above purposes in the
Borough of Manhattan, The City of New York, New York, United States of
America.

	9.	 	APPLICABLE LAW

The construction, validity and performance of this Agreement shall be
governed by the laws of the State of New York.

-9-

 

IN WITNESS WHEREOF the undersigned authorized officers have executed this
Agreement the day and year first hereinbefore written:

	 	 	 	 	 
	for and on behalf of

	 	 )	 	 
	THE BRITISH PETROLEUM

	 	 )
	 	/s/ D.A.G. Simon
	COMPANY p.l.c.

	 	 )	 	 

	 	 	 	 	 
	for and on behalf of

	 	 )
	 	/s/ G.N. Nelson
	BP EXPLORATION (ALASKA) INC.

	 	 )	 	 

	 	 	 	 	 
	for and on behalf of

	 	 )	 	 
	THE BP PRUDHOE BAY ROYALTY TRUST

	 	 )
	 	/s/ W.N. Gitlin
	by THE BANK OF NEW YORK, as Trustee

	 	 )	 	 

	 	 	 	 	 
	for and on behalf of

	 	 )
	 	/s/ [Signature illegible]
	THE STANDARD OIL COMPANY

	 	 )

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