Document:

Form of Modification Agreement

 Exhibit 10.67 
  
 MODIFICATION AGREEMENT 
  

			
	ENERGYTEC, INC., a Nevada Corporation	  	AMERICAN BANK OF TEXAS
		
	14785 Preston Road, Suite 500	  	P. O. Box 1234
		
	Dallas, Texas 75254	  	Sherman, Texas 75091-1234
	 (hereinafter called “Borrower”)
	  	(hereinafter called “Lender”)

  

			
	STATE OF TEXAS	  	 
	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF CASS	  	 

  
 THIS AGREEMENT (herein
so called) is made and entered into as of the 11th day of October, 2004, by and between Lender and Borrower. 
  
 WITNESSETH: 
  
 WHEREAS, ENERGYTEC, INC., a Nevada Corporation executed and delivered to AMERICAN BANK OF TEXAS that promissory note dated April 11, 2003, in the
original principal sum of $400,000.00 (the “Note”) which is currently held by Lender and; 
  
 WHEREAS, the Note is secured by deed of trust liens conveyed in deeds of trust dated April 11, 2003, recorded as follows: 
  
 Commercial Deed of Trust, Security Agreement, Financing Statement and
Assignment of Rents filed in Volume 3980, Page 98, and Oil and Gas Deed of Trust, Security Agreement, Financing Statement and Assignment of Rents filed in Volume 3980, Page 128, both of the Real Property Records of Bowie County, Texas; 

 
 Commercial Deed of Trust, Security Agreement, Financing Statement and
Assignment of Rents filed in Volume 1195, Page 761, and Oil and Gas Deed of Trust, Security Agreement, Financing Statement and Assignment of Rents filed in Volume 1195, Page 777, both of the Real Property Records of Cass County, Texas; 

 
 Oil and Gas Deed of Trust, Security Agreement, Financing Statement and
Assignment of Rents filed in Volume 422, Page 673, of the Real Property Records of Rains County, Texas (the “Deeds of Trust”) covering the real property (the “Property”) owned by Borrower, more fully described as follows:

  
 Real and Personal Property being more fully described in
Exhibit “A” attached hereto and made a part hereof for all purposes. 
  
 WHEREAS, the Note is further secured by certain other security (the “Additional Security”) more fully described as follows, to-wit: 
  
 UCC-1 Financing Statements filed with the Office of the Nevada Secretary of State under File Numbers: 2003013028-1,
2003013029-3, 2003013030-6, 2003013031-8, 2003013032-0, Commercial Guaranty Agreements executed by COMANCHE WELL SERVICE CORPORATION and LACY J. HARBER, Loan Agreement and Security Agreement (Pledge); (the Deeds of Trust and Additional Security
being collectively referred to as the “Security Documents”); and 
  
 WHEREAS, the Note presently matures on October 11, 2004, and Borrower has requested and Lender has agreed to amend and modify the Note and Security Documents. 
  

 Page 1 

 NOW THEREFORE, in consideration of the sum of Ten and No/100 Dollars ($10.00) and the exchange of other
good and valuable consideration paid by each of the parties to the other, the receipt and sufficiency of which is hereby acknowledged, Lender and Borrower AGREE AS FOLLOWS: 
  
 1. Acknowledgment of Outstanding Balance. The outstanding principal balance of the Note as of the date hereof is
$400,000.00. 
  
 2. Renewal and Extension of Maturity.
The Note is hereby renewed and the maturity of the Note is hereby extended to April 11, 2005 (“Revised Maturity Date”). 
  
 3. Amendment of Interest Rate. The interest rate in the Note is hereby amended to be as follows: 
  
 The lesser of (a) the Loan Rate (hereinafter defined) in
effect from day to day or (b) the Highest Lawful Rate (hereinafter defined) in effect from day to day. The term “Loan Rate” shall mean the sum of two percent (2.0%) and the Index as hereafter defined. The Loan Rate shall be
subject to change daily with changes in the Index. 
  
 Any change in either the Loan Rate or the Highest Lawful Rate shall, after Lender gives only such notice as may be required by applicable law or regulation, be effective for purposes of determining the Rate as of the opening of business on
the date of any such change. 
  
 The Index is The
Wall Street Journal Prime Rate which is the highest rate shown as the base rate on corporate loans posted by at least 75% of the nation’s 30 largest banks as published daily in the Money Rates Section of the Wall Street Journal. 
  
 The Index currently is Four and three-quarters of one
percent (4.75%) per annum. 
  
 The
“Highest Lawful Rate” is the maximum lawful rate which may be contracted for, charged, taken, received, or reserved by Lender in accordance with the applicable laws of the State of Texas (or applicable United States federal law to the
extent that it permits Lender to contract for, charge, take, receive or reserve a greater amount of interest than under Texas law), taking into account all charges made in connection with this loan which are treated as interest under applicable law.

  
 If at any time (i) the Loan Rate, (ii)
interest on matured unpaid amounts, if applicable, as provided for herein or in any of the other Loan Documents, together with (iii) all fees and charges, if any, contracted for, charged, received, taken or reserved by Lender in connection with the
loan evidenced hereby which are treated as interest under applicable law (collectively, the “Charges”), computed over the full term of this Note, exceed the Highest Lawful Rate, the rate of interest payable hereunder, together with all
Charges, shall be limited to the Highest Lawful Rate; provided, however, that any subsequent reduction in the Loan Rate shall not cause a reduction of the rate of interest payable hereunder below the Highest Lawful Rate until the total amount of
interest earned hereunder, together with all Charges, equals the total amount of interest which would have accrued at the Loan Rate if such interest rate had at all times been in effect. Changes in the Loan Rate resulting from a change in the Index
shall be subject to the provisions of this paragraph. 
  
 The actual interest charged shall be subject, however, to the interest limitations specified in the Note. 
  
 4. Required Payments. Principal and accrued and unpaid interest on the Note shall be due and payable as follows: 
  
 The principal of this Note shall be due and payable in
monthly installments of $11,111.11 or more, each, payable on the 11th day of each and every calender month, beginning November 11, 2004, and continuing regularly and monthly thereafter until April 11, 2005, when the
entire amount of principal and interest then remaining unpaid, shall be then due and payable. Interest, computed on the unpaid principal balance hereof, shall be due and payable monthly as it accrues, on the same dates as, but in addition to, said
installments of principal. 
  
 In the event any
monthly installment is not received by Note Holder within 15 days from due date. Borrower shall pay a late charge of five percent (5%) of the regularly scheduled payment of principal and interest. 
  
 5. Financial Statements and Appraisals. Borrower and each person
liable for repayment of the Note shall furnish to Lender on an annual basis, balance sheets, income statements and cash flow statements in such form and detail as Lender shall require. 

  

 Page 2 

 
Borrower shall furnish to Lender upon request, such appraisals of the Property as may be required of Lender under applicable State or Federal laws and
regulations issued pursuant thereto. 
  
 6. Hazardous
Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in
violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal use and
maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance
or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary.
Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this Paragraph 6, “Hazardous Substances” are those substances defined as toxic or hazardous substances by Environmental Law and
the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this Paragraph 6,
“Environmental Law” means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 
  
 7. Additional Provisions. THIS LOAN IS PAYABLE IN FULL AT MATURITY. BORROWER MUST REPAY THE ENTIRE PRINCIPAL BALANCE
OF THE LOAN AND UNPAID INTEREST THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. BORROWER WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT BORROWER MAY OWN, OR BORROWER WILL HAVE TO FIND A LENDER
WHICH MAY BE THE LENDER BORROWER HAS THIS LOAN WITH, WILLING TO LEND BORROWER THE MONEY. IF BORROWER REFINANCES THIS LOAN AT MATURITY, BORROWER WILL HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF BORROWER
OBTAINS REFINANCING FROM THE SAME LENDER. THIS LENDER WILL CONSIDER AN APPLICATION TO REFINANCE THE BALLOON PAYMENT AT THE TIME PAYMENT IS DUE, ON THE SAME BASIS AS ALL OTHER NEW MORTGAGE LOAN APPLICATIONS. 
  
 8. Ratification of Security Documents. Borrower and Lender further
agree that the liens, assignments and security interests created by the Security Documents shall continue and carry forward until the Note and all indebtedness evidenced thereby is paid in full. Borrower further agrees that Lender is the holder of
the Note and the Security Documents and that such liens, assignments and security interests are hereby ratified and affirmed as valid and subsisting against the Property, and that this Agreement shall in no manner vitiate, affect or impair the Note
or the Security Documents (except as expressly modified in this Agreement), and that such liens, assignments, and security interests shall not in any manner be waived, released, altered or modified until the Note and all other obligations secured by
the Security Documents (including any and all subsequent renewals and extensions) have been paid in full. 
  
 9. Release of Claims. Borrower hereby RELEASES, RELINQUISHES and forever DISCHARGES Lender, its agents, officers, directors, employees and
representatives of and from any and all claims, demands, actions and causes of action of any and every kind or character, whether known or unknown, present or future, which Borrower may have against Lender, its agents, officers, directors, employees
and representatives arising out of or with respect to any and all transactions relating to the Note and the Security Documents occurring prior to the date hereof. 
  
 10. Miscellaneous. 
  
 (a) Except as modified hereby, all terms and provisions of the Note and Security Documents remain unchanged, are expressly ratified and shall continue in
full force and effect, and Borrower acknowledges and affirms Borrower’s liability to Lender thereunder. In the event of an inconsistency between this Agreement and the terms of the Note and/or Security Documents, this Agreement shall govern.

  
 (b) Borrower hereby agrees to pay all costs and expenses
incurred by Lender in connection with the execution and administration of this Agreement, the reinstatement and modification of the Note and/or Security Documents, and any other documents executed in connection herewith. 
  
 (c) Any default by Borrower in the performance of its obligations herein
contained shall constitute a default under the Note and Security Documents, and shall allow Lender to exercise any or all of its remedies set forth in the Note and Security Documents or at law or in equity. 
  
 (d) Lender does not, by its execution of this Agreement, waive any rights it
may have against any person not a party hereto. 
  
 (e) This
Agreement may be executed in multiple counterparts, each of which shall constitute an original instrument, but all of which shall constitute one and the same Agreement. 
  

 Page 3 

 (f) Borrower agrees that this Agreement and all of the covenants and agreements contained herein shall be
binding upon the parties hereto and shall inure to the benefit of and be binding upon each of their respective heirs, executors, legal representatives, successors and permitted assigns. 
  
 11. No Oral Agreements. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENTS BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  

									
	 LENDER:
	 	 	 	 BORROWER:

			
	 AMERICAN BANK OF TEXAS
	 	 	 	 ENERGYTEC, INC., a Nevada Corporation

					
	 BY:
	 	 /s/ Kyle Beall
	 	 	 	 BY:
	 	 /s/ Frank W. Cole

	 ITS:
	 	 Senior Vice President
	 	 	 	 	 	 FRANK W. COLE, President

  

									
	 	 	 	 	 GUARANTORS:

				
	 	 	 	 	 	 	 /s/ Lacy J. Harber

	 	 	 	 	 	 	 LACY J. HARBER

  

									
	 	 	 	 	 COMANCHE WELL SERVICE CORPORATION,
 a Texas Corporation

					
	 	 	 	 	 	 	 BY:
	 	 /s/ Frank W. Cole

	 	 	 	 	 	 	 ITS:
	 	 President

  
 STATE OF TEXAS 
  
 COUNTY OF DALLAS 
  
 This instrument was acknowledged before me on the 11th day of October, 2004, by FRANK W. COLE, President of ENERGYTEC, INC., a Nevada Corporation, on behalf of said corporation. 
  

									
			
	 	 	 	 	 /s/ Gregory Allen Ball

	 	 	 	 	 	 	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF GRAYSON 
  
 This instrument was acknowledged before me on the 1st day of December, 2004, by LACY J. HARBER. 
  

									
			
	 	 	 	 	 /s/ Freda Brown

	 	 	 	 	 	 	 NOTARY PUBLIC - STATE OF TEXAS

  

 Page 4 

 STATE OF TEXAS 
  
 COUNTY OF DALLAS 
  
 This instrument was acknowledged before me on the 11th day of October, 2004, by Frank W. Cole of COMANCHE WELL SERVICE CORPORATION, a Texas Corporation, on behalf of said corporation. 
  

									
			
	 	 	 	 	 /s/ Gregory Allen Ball

	 	 	 	 	 	 	 NOTARY PUBLIC - STATE OF TEXAS

  
 STATE OF TEXAS 
  
 COUNTY OF GRAYSON 
  
 This instrument was acknowledged before me on the 1st day of December, 2004, by Kyle Beall Sup of AMERICAN BANK OF TEXAS, a banking association, on behalf of said association. 
  

									
			
	 	 	 	 	 /s/ Freda Brown

	 	 	 	 	 	 	 NOTARY PUBLIC - STATE OF TEXAS

  

			
	After recording, return to:	 	Prepared in the Law Office of:
		
	 Munson, Munson, Cardwell & Keese, P.C.
 301 W.
Woodard - P. O. Box 1099
 Denison, Texas 75020
 (903)
463-3750
	 	 Munson, Munson, Cardwell & Keese, P.C.
 301 W.
Woodard - P. O. Box 1099
 Denison, Texas 75020
 (903)
463-3750

  

 Page 5 

  
 EXHIBIT “A”

  
 PART ONE: 
  
 Tract I: 
  
 Situated in the County of Bowie, State of Texas, being Tract I, Segment I of that certain Surface Lease and Pipeline Right of Way Agreement
by and between Shell Oil Company and Delhi Gas Pipeline Corporation dated May 8, 1973, such surface leases being recorded in Volume 558, Page 496 of the Official Records of Cass County, Texas, and being partially assigned by Partial Assignment of
Right of Way from Koch Midstream Services Company and Producers Pipeline Corporation effective March 1, 1999, and recorded in Volume 3053, Page 1 of the Official Records of Bowie County, Texas. 
  
 Situated in the County of Bowie, State of Texas, and being a six inch pipeline and
appurtenances, Beginning at a point where it crosses the Sulphur River and enters Bowie County, Texas, continuing in a Northwesterly direction over, across and through the following surveys: Mrs. Willie R. Timmins Survey, A-1187; T. and P.R.R.
Survey, A-620; B.B.B. and C.R.R. Survey, A-81; Allen Brazzel Survey, A-68; Thos Y. Logwood Survey, A-343; T. and P.R.R. Survey, A-619; R. J. Creamer, A-922; Sterling M. Yancy Survey, S-693; T. and R.R., A-625; Hiram Edwards Survey, A-198; T. and
P.R.R. Survey, A-579; T. and P.R.R., A-606; F.E. Ames Survey, A-11; A. F. Hancock Survey, A-883; T. and P.R.R. Survey, A-587 and ending at a point located within the Jas Parham Survey, A-481. Said pipeline and appurtenances being more fully shown on
Alignment Drawings Numbered 1 through 6 of Delhi Gas Pipeline Corp., Dalby Springs Lateral, dated March 1973, and being more fully described in Assignment and Bill of Sale of Personal Property from Koch Midstream Services Company to Producers
Pipeline Corporation, effective March 1, 1999 and recorded in Volume 3052, Page 347, Official Records of Bowie County, Texas. 
  
 Situated in the County of Bowie, State of Texas, and being those rights of way, easements and permits assigned by Koch Midstream Services Company to Producers Pipeline
Corporation by Assignment of Right-of-Way, Easements and Permits effective March 1, 1999 and recorded in Volume 3053, Page of the Official Public Records of Bowie County, Texas, said Rights-of-Way, Easements and Permits being more fully described in
Schedule I-A attached hereto and made a part hereof. 
  
 Situated in the County of
Bowie, State of Texas, and being a natural gas processing plant, fee lands, pipeline and gathering system commonly known as Processing Plant No. 360, located in the Ann Hale Headright Survey assigned by Mescalaro Oil & Gas, Inc. to Producers
Pipeline Corporation, by Assignment and Bill of Said recorded in Volume 3009, Page 226, Official Records, Bowie County, Texas, said lands, pipeline and gathering system being more fully described in Schedule 2-A attached hereto and made a part
hereof for all purposes. 
  
 Tract II: 
  
 Situated in the County of Bowie, State of Texas, part of the Daniel Morris Survey, Abstract
No. 381, and being that certain 3 acre easement over, through and across 40 acres, more or less, conveyed for the purposes of constructing, maintaining, operating, altering and repairing a control station for the transportation of oil, gas,
petroleum products and other liquids, gases or substances 

  

 
more fully described in Schedule 1-B attached hereto, together with a 30 foot pipeline easement more fully described in Schedule 2-B attached hereto; and a
50 foot road right of way more fully described in Schedule 3-B attached hereto; all granted by M. Mark Lesher and Emily Lesher to Mike Rogers Drilling Company, Inc., dated December 2, 1988, and recorded in Volume 1288, Page 332, Deed Records, Bowie
County, Texas, and subsequently assigned by Act of Assignment from Mike Rogers Drilling Co., Inc. to Rockwall Marketing Corporation effective January 1, 1996 and recorded in Volume 2657, Page 84 of the Real Property Records of Bowie County, Texas.

  
 Tract III: 
  
 AN UNDIVIDED 68.75% WORKING INTEREST IN THE FOLLOWING DESCRIBED OIL AND GAS LEASE:

  

			
	LESSOR:	  	JAMES J. NAPLES
		
	LESSEE:	  	BARROW-SHAVER RESOURCES COMPANY
		
	DATE:	  	January 9, 1992
		
	RECORDED:	  	Volume 1716, Page 36 of the Real Property Records of Bowie County, Texas.
		
	EXTENSIONS:	  	January 7, 1993, recorded in Volume 1885, at Page 162 and March 5, 1993, recorded in Volume 1913, at Page 169 of the Real Property Records of Bowie County, Texas.
		
	ASSIGNMENT:	  	March 18, 1996, from ULTRA PETROLEUM (USA), INC. as Assignor to ROCKWALL MARKETING CORPORATION as Assignee, of record in Volume 2495, Page 236 of the Real Property Records of Bowie County,
Texas, assigning 68.75% Working Interest.
		
	LANDS:	  	200 acres, more or less, out of the MEP & R Railway Survey, A-420; John McClure Headright Survey, A-392, and the Daniel Morris Headright Survey, A-381, Bowie County, Texas, as more fully
described in Schedule “I” attached hereto and made a part hereof for all purposes.

  

  
 J. D.
OWEN GAS UNIT NO. 1 AND NO. 2 
  
 Situated in the County of Bowie, State of
Texas, and being Oil and Gas Properties, Wells and Equipment described in Assignment and Bill of Sale from Rialto Energy, Inc. to Rockwall Marketing Corporation, effective June 1, 1995, recorded in Volume 2394, Page 25, Official Records, Bowie
County, Texas, said Oil and Gas Properties being more fully described in Schedule II attached hereto and made a part hereof for all purposes. 
  
 Situated in the County of Bowie, State of Texas, and being a part of the J. S. Herring Survey, Abstract No. 263, and being Oil and Gas Properties, Wells and Equipment
described in Assignment, Bill of Sale and Conveyance from Stelaron, Inc. to Rockwall Marketing Corporation, effective September 1, 1996, recorded in Volume 2636, Page 31, Official Records, Bowie County, Texas, said Oil and Gas Properties being more
fully described in Schedule II attached hereto and made a part hereof for all purposes. 
  
 Situated in the County of Bowie, State of Texas, and being a part of the J. S. Herring Survey, Abstract No. 263, and the E. T. Jackson Survey, Abstract No. 300, and being Oil and Gas Properties, Wells and Equipment described in Assignment
and Bill of Sale from Stratco Operating Co., Inc. to Rockwall Marketing Corporation, effective January 1, 1996, recorded in Volume 2495, Page 239, Official Records, Bowie County, Texas, said Oil and Gas Properties being more fully described in
Schedule II attached hereto and made a part hereof for all purposes. 
  
 Situated
in the County of Bowie, State of Texas, and being a part of the J. S. Herring Survey, Abstract No. 263, the E. T. Jackson Survey, Abstract No. 300, and the N. Hale Survey, Abstract No. 273, and being oil, gas and mineral leases, wells and equipment
described in Assignment and Bill of Sale from Vintage Petroleum, Inc. to Rockwall Marketing Corporation, effective September 1, 1998, recorded in Volume 2969, Page 129, Official Records, Bowie County, Texas, said Oil and Gas Properties being more
fully described in Schedule II attached hereto and made a part hereof for all purposes. 
  
 Situated in the County of Bowie, State of Texas, and being 487.829 acres out of the J. S. Herring Survey, Abstract No. 263, and the B. T. Jackson Survey, Abstract No. 300, and being Oil and Gas Properties, Wells and Equipment described in
Assignment, Bill of Sale and Conveyance from DNA Petroleum, Inc. to Rockwall Marketing Corporation, effective September 1, 1997, recorded in Volume 2761, Page 66, Official Records, Cass County, Texas, said Oil and Gas Properties being more fully
described in Schedule II attached hereto and made a part hereof for all purposes. 
  
 LOYD WILSON GAS UNIT NO. 1 
  
 Situated in the County of Bowie, State of Texas, and being part of the Daniel Morris Survey, Abstract No. 382 and being Well and Equipment described in Bill of Sale from
Vintage Petroleum, Inc. to Rockwall Marketing Corporation recorded in Volume 2705, Page 301, Official Records, Bowie County, Texas. 
  
 Situated in the County of Bowie, State of Texas and being 109 acres and 137 acres, all in the Daniel Morris Survey, Abstract No. 382 and being an Oil, Gas and Mineral
Lease from Johnson Timber & Land Co. Ltd., et al to Rockwall Marketing Corporation, effective January 1, 1997, recorded in Volume 2636, Page 18, Official Records, Bowie County, Texas. 
  

 FEAZELL NO. 1-A 
  
 Situated in the County of Bowie, State of Texas, and being 160 acres, more or less, T & P.R.R. Survey, Abstract No. 587, and being Oil
and Gas Properties, Wells and Equipment described in Assignment and Bill of Sale from Mescalaro Oil & Gas, Inc. to Rockwall Marketing Corporation effective November 1, 1998, and recorded in Volume 3009, Page 233, Official Records, Bowie County,
Texas, said Oil and Gas Properties being more fully described as Oil and Gas Lease from William S. Feazell, et ux to Bishop Petroleum, Inc. dated January 1, 1983, recorded in Volume 18, Page 695, Real Property Records, Bowie County, Texas.

  
 B. E. LEWIS GAS UNIT NO. 1 

 
 Situated in the County of Bowie, State of Texas, and being 621.715 acres, more or less,
out of the John J. Carson Survey, Abstract No. 112, the Jacob Barkman Survey, Abstract No. 51 and the R. F. Peters Survey, Abstract No. 480 and being Oil and Gas Properties, Wells and Equipment described in Assignment and Bill of Sale from Mescalaro
Oil & Gas, Inc. to Rockwall Marketing Corporation, effective November 1, 1998, recorded in Volume 3009, Page 233, Official Records, Bowie County, Texas, said Oil and Gas Properties being more fully described in Schedule III attached hereto and
made a part hereof for all purposes. 
  
 COUCH
UNIT PROSPECT 
  
 Situated in the County of Bowie, State of Texas, and being
1090.602 acres, more or less, and being Oil and Gas Properties described in Assignment from Field Information Services, Inc. to Rockwall Marketing Corporation, effective July 1, 1996, recorded in Volume 2636, Page 26, Official Records, Bowie County,
Texas, said Oil and Gas Properties being more fully described in Schedule IV attached hereto and made a part hereof for all purposes. 
  
 RUTH MARABLE NO. 1 160.0 ACRE UNIT 
  
 Situated in the County of Bowie, State of Texas, being 160.0 acres of land, more or less, out of the Daniel Morris Headright Survey, Abstract No. 381, as more fully
described in Assignment, Bill of Sale and Conveyance: (i) from Roy T. Rimmer, Jr., to Rockwall Marketing Corporation, effective July 1, 1994, and recorded under Clerk’s File No. 11082 on September 2, 1994 in the Real Property Records of Bowie
County, Texas; (ii) from Carden Oil & Gas, Inc. to Rockwall Marketing Corporation effective September 1, 1996 and recorded in Volume 2627, Page 279 of the Real Property Records of Bowie County, Texas; and (iii) from Coronado Company to Rockwall
Marketing Corporation effective January 1, 1997 and recorded in Volume 2698, Page 106 of the Real Property Records of Bowie County, Texas, and being more fully described in Schedule V attached hereto and made a part hereof for all purposes.

  
 W. E. SPENCER NO. 1 
  
 Situated in the County of Bowie, State of Texas, being 160.0 acres of land, more or less,
out of the Daniel Morris Headright Survey, Abstract No. 381, as more fully described in Assignment, Bill of Sale and Conveyance: (i) from Roy T. Rimmer, Jr., to Rockwall Marketing Corporation, 

  

 
effective July 1, 1994, and recorded under Clerk’s File No. 11082 on September 2, 1994 in the Real Property Records of Bowie County, Texas; (ii) from
Carden Oil & Gas, Inc. to Rockwall Marketing Corporation effective September 1, 1996 and recorded in Volume 2627, Page 279 of the Real Property Records of Bowie County, Texas; and (iii) from Coronado Company to Rockwall Marketing Corporation
effective January 1, 1997 and recorded in Volume 2698, Page 106 of the Real Property Records of Bowie County, Texas, and being more fully described in Schedule VI attached hereto and made a part hereof for all purposes. 
  
 IVA L. SMITH NO. 1 
  
 Situated in the County of Bowie, State of Texas, being 160.0 acres of land, more or less,
out of the Daniel Morris Headright Survey, Abstract No. 381, as more fully described in Assignment, Bill of Sale and Conveyance: (i) from Roy T. Rimmer, Jr., to Rockwall Marketing Corporation, effective July 1, 1994, and recorded under Clerk’s
File No. 11082 on September 2, 1994 in the Real Property Records of Bowie County, Texas; (ii) from Carden Oil & Gas, Inc. to Rockwall Marketing Corporation effective September 1, 1996 and recorded in Volume 2627, Page 279 of the Real Property
Records of Bowie County, Texas; and (iii) from Coronado Company to Rockwall Marketing Corporation effective January 1, 1997 and recorded in Volume 2698, Page 106 of the Real Property Records of Bowie County, Texas, and being more fully described in
Schedule VII attached hereto and made a part hereof for all purposes. 
  
 Tract
IV: 
  
 Situated in the County of Cass, State of Texas, part of the Samuel
Burnham Survey, Abstract No. 67, and being that certain Easement and Right of Way over and across 69.00 acres, more or less, conveyed by Robert L. Warren to Producers Pipeline Corporation, recorded in Volume 1078, Page 403 of the Official Records of
Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, part of
the Samuel Burnham Survey, Abstract No. 67, and being that certain Easement and Right of Way over and across 100.00 acres, more or less, conveyed by Arthur Andrew Arnold, et al to Producers Pipeline Corporation, recorded in Volume 1078, Page 405 of
the Official Records of Cass County, Texas. 
  
 Situated in the County of Cass,
State of Texas, part of the John C. Gahagan Survey, Abstract No. 390, and being that certain Easement and Right of Way over and across 70.34 acres, more or less, conveyed by Donald E. Coats, Sr., et ux, to Producers Pipeline Corporation, recorded in
Volume 1078, Page 407 of the Official Records of Cass County, Texas. 
  
 Situated
in the County of Cass, State of Texas, part of the John C. Gahagan Survey, Abstract No. 390 and being that certain Easement and Right of Way over and across 35.16 acres, more or less, conveyed by Donald E. Coats, Jr., et ux, to Producers Pipeline
Corporation, recorded in Volume 1078, Page 409 of the Official Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, part of the Samuel Burnham Survey, Abstract No. 67, and being that certain Easement and Right of Way over and across 50.00 acres, more or less, conveyed by E. H.
Florence, et ux to Producers Pipeline Corporation recorded in Volume 1078, Page 411 of the Official Records of Cass County, Texas. 
  

 Situated in the County of Cass, State of Texas, being Tract I, Segment I of that certain Surface Lease and Pipeline
Right-of-Way Agreement by and between Shell Oil Company and Delhi Gas Pipeline Corporation dated May 8, 1973, such surface leases being recorded in Volume 558, Page 496 of the Official Records of Cass County, Texas and being partially assigned by
Partial Assignment of Right of Way from Koch Midstream Services Company to Producers Pipeline Corporation effective March 1, 1999, and recorded in Volume 1078, Page 391, Official Records of Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, and being a six inch pipeline and
appurtenances, Beginning at a point within the Sulphur River Bryans Mill Plant located in the Benjamin F. Lynn Survey, Abstract No. 651, Cass County, Texas, and continuing in a Northwesterly direction over, across, and through the following surveys:
John Myers Survey, Abstract No. 695; Elizabeth Barcroft Survey, Abstract No. 113; W.M.S. Armstrong Survey, Abstract No. 29; J. S. Petty Survey, Abstract No. 864; H. C. Adams Survey, Abstract No. 16; Geo W. Sternes Survey, Abstract No. 97; Cass
County School Land, Abstract No. 173; Lewis Holcomb Survey, Abstract No. 479; J. P. Mathews Survey, Abstract No. 1265, at which point the six inch pipeline leaves Cass County, Texas and crosses the Sulphur River and enters Bowie County, Texas. Said
pipeline and appurtenances being more fully shown on Alignment Drawings Numbered 1 through 6 of Delhi Gas Pipeline Corp., Dalby Springs Lateral, dated March 1973, and being more fully described in Assignment and Bill of Sale of Personal Property
from Koch Midstream Services Company to Producers Pipeline Corporation, effective March 1, 1999 and recorded in Volume 1078, Page 386, Official Records, Cass County, Texas. 
  
 Situated in the County of Cass, State of Texas, and being those rights of way, easements and permits assigned by Koch Midstream Services
Company to Producers Pipeline Corporation by Assignment of Rights-of-Way, Easements and Permits effective March 1, 1999, and recorded in Volume 1078, Page 395, Official Records, Cass County, Texas, said rights of way, easements and permits being
more fully described in Schedule I attached hereto and made a part hereof for all purposes. 
  
 Tract V: 
  
 Tract VI: 

 
 C. E. GLASS NO. 1 GAS UNIT 
  
 Gas Unit Designation, Kaiser Oil (U.S.), Ltd. et al - V. E. Glass Unit No. 1, dated January
25, 1982, recorded in Volume 672, Page 542 of the Official Records of Cass County, Texas, as well as any amendments thereto of record in Cass County, Texas, as more fully described in Assignment and Bill of Sale from Salt Creek Production, Inc. and
K.M.A. Operating, Inc. to Rockwall Marketing Corporation effective January 1, 1996, recorded in Volume 1006, Page 876, Official Records of Cass County, Texas, said leases being more fully described in Schedule I-D attached hereto and made a part
hereof for all purposes. 
  

 R. BROWN NO. 1 GAS UNIT 
  
 Oil, gas and mineral property known as the Long Operating, L.L.C. - R. Brown No. 1 Gas Unit
located in the Atlanta South Field, Samuel Burnham Survey, Abstract No. 67, more fully described in Assignment and Conveyance from Long Petroleum, Inc. to Rockwall Marketing Corporation, effective January 1, 1999, recorded in Volume 1075, Page 513,
Official Records, Cass County, Texas, and al of the Oil, Gas and Mineral Leases covering lands included therein, being described in Schedule II-D attached hereto and made a part hereof for all purposes. 
  
 BEAVER GAS UNIT NO. 1 
  
 Oil and Gas Properties, Wells and Equipment described in Assignment and Bill of Sale from
SOGO, Inc. to Rockwall Marketing Corporation, effective September 1, 1996, recorded in Volume 1019, Page 381, Official Records of Cass County, Texas, said oil and gas properties being more fully described in Schedule III-D attached hereto and made a
part hereof for all purposes. 
  
 Tract VII: 
  
 WADE BROTHERS GAS UNIT NO. 1 
  
 Oil and gas property known as Wade Brothers Gas Unit No. 1 as described in Unit Declaration
recorded in Volume 286, Page 667 of the Deed Records of Rains County, Texas, as more fully described in Assignment and Bill of Sale from Scotchwood Group, Ltd., et al to Rockwall Marketing Corporation effective March 1, 1998 and recorded in Volume
359, Page 362, of the Deed Records of Rains County, Texas. 
  
 PART TWO:

  
 TO THE EXTENT LOCATED AT, INSTALLED ON, DEPOSITED IN, AFFIXED OR ATTACHED
TO, USED IN CONNECTION WITH OR RESULTING FROM OPERATIONS CONDUCTED ON THE REAL PROPERTY DESCRIBED IN EXHIBIT “B” ATTACHED HERETO. 
  
 All of Borrower’s presently existing and hereafter arising or acquired “Accounts” which shall mean and include all of Borrower’s present and future
rights to payment for real property, goods, merchandise or Inventory (as hereinafter defined) sold, rented or leased or for services rendered, including, without limitation, those which are not evidenced by instruments or chattel paper, and whether
or not they have been earned by performance; account(s), accounts receivable, proceeds of any letters of credit on which Borrower is named as beneficiary; contract rights; acceptances; notes; chattel paper; instruments (other than margin stock);
drafts; documents; insurance proceeds; deposits or other sums credited by or due from the Secured Party to Borrower; and all such obligations whatsoever owing to Borrower, together with all instruments and all documents of title representing any of
the foregoing, all rights in any goods, merchandise or Inventory which any of the same may represent, all rights in any returned or repossessed goods, merchandise and Inventory, and all right, title, security and guaranties with respect to each of
the foregoing, including, without limitation, any right of stoppage in transit. In addition, this definition shall include the definition of “accounts” as that term is used in the Uniform Commercial Code of each state in which the
Borrower’s Accounts are located. 
  

 All of Borrower’s presently existing and hereafter arising or acquired “Inventory” which shall mean any
and all goods, merchandise and other personal property, wheresoever located and whether or not in transit, now owned or hereafter acquired by Borrower which is or may at any time be held for sale or lease, furnished under any contract of service or
held as raw materials, work in process, finished goods, supplies or material used or consumed in Borrower’s business and all such property the sale or other disposition of which has given rise to Accounts and which has been returned to or
repossessed or stopped in transit by Borrower or which is or might be used in connection with the manufacture, packing, shipping, advertising, selling or finishing of such goods, merchandise and other personal property, all returned or repossessed
goods now, or at any time or times hereafter, in the possession or under the control of Borrower or Secured Party, and all documents of title or documents representing the same. In addition, this definition shall include the definition of
“inventory” as that term is used in the Uniform Commercial Code of each state in which the Borrower’s Inventory is located. 
  
 All of Grantor’s presently existing and hereafter arising or acquired “Equipment” which shall mean all of Grantor’s now owned or hereafter acquired
fixtures, machinery and equipment, including, without limitation, furniture, rolling stock, vehicles, trade fixtures and machinery, and the equipment more fully described in Exhibit “B” attached hereto and made a part hereof for all
purposes, together with any and all improvements, accessions, parts and appurtenances thereto, substitutions therefor and replacements thereof. In addition, this definition shall include the definition of “equipment” as that term is
defined in the Uniform Commercial Code of each state in which the Grantor’s Equipment is located. 
  
 All of Borrower’s presently existing or hereafter arising depository accounts and all of Borrower’s rights, title and interest in and to any deposits or other sums at any time credited by or due from
financial institutions to Borrower. 
  
 All accessions to, substitutions for and
all replacements, products and proceeds of the foregoing, including, without limitation, proceeds of insurance policies insuring any of the foregoing. 
  
 All books and records (including, without limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of Borrower
pertaining to any of the foregoing. 
  

  
 SCHEDULES TO EXHIBIT OMITTEDOil, Gas, and Mineral Lease

 Exhibit 10.68 
  

					
	Producers 88 (7-69) – Paid Up	  	 	  	©POUND PRINTING & STATIONERY COMPANY
	With 640 Acres Pooling Provision	  	TEXAS STANDARD FORM    	  	2325 FANNIN, HOUSTON, TEXAS 77002 (713) 659-3159

  
 OIL, GAS AND MINERAL
LEASE 
  
 THIS AGREEMENT made this 4th day of January 1995,
between Jimmy B. Smith, Sr., Mineral Owner, By Deed of Record on the 20 day of May, 1981. Volume 119 Page 377 of the Oil & Gas Lease Records of Milam County, Texas. Lessor (whether one or more), whose address is: 971 Centerville St. N.E., Denham
Springs, LA. 70726-3811, and H. Hal McKinney, 627 N. Main, Rockdale, Tx. 76567, Lessee, WITNESSETH: 
  
 1. Lessor, in consideration of Ten and no/100 Dollars, receipt of which is hereby acknowledged, and of the covenants and agreements of lessee hereinafter
contained, does hereby grant, lease and let unto lessee the land covered hereby for the purposes and with the exclusive right of exploring, drilling, mining and operating for, producing and owning oil, gas, sulphur and all other minerals (whether or
not similar to those mentioned), together with the right to make surveys on said land, lay pipe lines, establish and utilize facilities for surface or subsurface disposal of salt water, construct roads and bridges, dig canals, build tanks, power
stations, telephone lines, employee houses and other structures on said land, necessary or useful in lessee’s operations in exploring, drilling for, producing, treating, storing and transporting minerals produced from the land covered hereby or
any other land adjacent thereto. The land covered hereby, herein called “said land”, is located in the County of Milam, State of Texas, and is described as follows: 
  
 Being 229 acres more or less out of the William Allen Survey, A-72 Milam County, Texas said property is more fully described
in Volume 583, Page 574 and Volume 683, Page 574, of the deed records of Milam County, Texas. Also described by RRC Lease #01198. 
  
 This lease also covers and includes, in addition to that above described, all land, if any, contiguous or adjacent to or adjoining the land above described and (a) owned
or claimed by lessor by limitation, prescription, possession, reversion or unrecorded instrument or (b) as to which lessor has a preference right of acquisition. Lessor agrees to execute any supplemental instrument requested by lessee for a more
complete or accurate description of said land. For the purpose of determining the amount of any bonus or other payment hereunder, said land shall be deemed to contain 229 acres, whether actually containing more or less, and the above recital of
acreage in any tract shall be deemed to be the true acreage thereof. Lessor accepts the bonus as lump sum consideration for this lease and all rights and options hereunder. 
  
 2. Unless sooner terminated or longer kept in force under other provisions hereof, this lease shall remain in force for a
term of 1 year from the date hereof, hereinafter called “primary term”, and as long thereafter as operations, as hereinafter defined, are conducted upon said land with no cessation for more than ninety (90) consecutive days. 
  
 3. As royalty, lessee covenants and agrees: (a) To deliver to the credit of
lessor, in the pipe line 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 xx render it marketable pipe line oil; (b) To pay lessor on
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 off said land or in the manufacture of gasoline or other products, the
market value, at the mouth of the well, of one-eighth of such gas and casinghead gas; (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 sulphur 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-ins, and thereafter this lease may be continued in force as if no shut-in had occurred. Lessee covenants 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 __________
__________________________________________________________________________________________ Bank at __________________________________, 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 such 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 owner or owners of this lease, severally as to acreage owned by each. 
  
 4. Lessee is hereby granted the right, at its option, to pool or unitize any land covered by this lease with any other land
covered by this lease, and/or with any other land, lease, or leases, as to any or all minerals or horizons, so as to establish units containing not more than 80 surface acres, plus 10% acreage tolerance; provided, however, units may be established
as to any one or more horizons, or existing units may be enlarged as to any one or more horizons, so as to contain not more than 640 surface acres plus 10% acreage tolerance, if limited to one or more of the following: (1) gas, other than casinghead
gas, (2) liquid hydrocarbons (condensate) which are not liquids in the subsurface reservoir, (3) minerals produced from wells classified as gas wells by the conservation agency having jurisdiction. If larger units than any of those herein permitted,
either at the time established, or after enlargement, are required under any governmental rule or order, 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, any such unit may be established or enlarged to conform to the size required by such governmental order or rule. Lessee shall exercise said option as to each desired unit by executing an instrument identifying such unit and filing
it for record in the public office in which this lease is recorded. Each of said options may be exercised by lessee at any time and from time to time while this lease is in force, and whether before or after production has been established either on
said land, or on the portion of said land included in the unit, or on other land unitized therewith. A unit established hereunder shall be valid and effective for all purposes of this lease even though there may be mineral, royalty, or leasehold
interests in lands within the unit which are not effectively pooled or unitized. Any operations conducted on any part of such unitized land shall be considered, for all purposes, except the payment of royalty, operations conducted upon said land
under this lease. There shall be allocated to the land covered by this lease within each such unit (or to each separate tract within the unit if this lease covers separate tracts within the unit) that proportion of the total production of unitized
minerals from the unit, after deducting any used in lease or unit operations, which the number of surface acres in such land (or in each such separate tract) covered by this lease within the unit bears to the total number of surface acres in the
unit, and the production so allocated shall be considered for all purposes, including payment or delivery of royalty, overriding royalty and any other payments out of production, to be the entire production of unitized minerals from the land to
which allocated in the same manner as though produced therefrom under the terms of this lease. The owner of the reversionary estate of any term royalty or mineral estate agrees that the accrual of royalties pursuant to this paragraph or of shut-in
royalties from a well on the unit shall satisfy any limitation of term requiring production of oil or gas. The formation of any unit hereunder which includes land not covered by this lease shall not have the effect of exchanging or transferring any
interest under this lease (including, without limitation, any shut-in royalty which may become payable under this lease) between parties owning interests in land covered by this lease and parties owning interests in land not covered by this lease.
Neither shall it impair the right of lessee to release as provided in paragraph 5 hereof, except that lessee may not so release as to lands within a unit while there are operations thereon for unitized minerals unless all pooled leases are released
as to land within the unit. At any time while this lease is in force lessee may dissolve any unit established hereunder by filing for record in the public office where this lease is recorded a declaration to that effect, if at that time no
operations are being conducted thereon for unitized minerals. Subject to the provisions of this paragraph 4, a unit once established hereunder shall remain in force so long as any lease subject thereto shall remain in force. If this lease now or
hereafter covers separate tracts, no pooling or unitization of royalty interests 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 or unitize as provided in this paragraph 4 with consequent allocation of production as herein 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. 
  
 5. Lessee may at any time and from time to time execute and deliver to lessor or file for record a release or releases of this lease as to any part or all
of said land or of any mineral or horizon thereunder, and thereby be relieved of all obligations, as to the released acreage or interest. 
  
 6. Whenever used in this lease the word “operations” shall mean operations for and any of the following: drilling, testing, completing,
reworking, recompleting, deepening, plugging back or repairing of a well in search for or in an endeavor to obtain production of oil, gas, sulphur or other minerals, excavating a mine, production of oil, gas, sulphur or other mineral, whether or not
in paying quantities. 
  

 7. Lessee shall have the use, free from xxx water, other than from lessor’s water wells, and of oil
and xxx produced from said land in all operations hereunder. Lessee shall have the right at any time to remove all machinery and fixtures placed on said land, including the right to draw and remove casing. No well shall be drilled nearer than 200
feet to the house or barn now on said land without the consent of the lessor. Lessee shall pay for damages caused by its operations to growing crops and timber on said land. 
  
 8. The rights and estate of any party hereto may be assigned from time to time in whole or in part and as to any mineral or
horizon. All of the covenants, obligations, and considerations of this lease shall extend to and be binding upon the parties hereto, their heirs, successors, assigns, and successive assigns. No change or division in the ownership of said land,
royalties, or other moneys, or any part thereof, howsoever effected, shall increase the obligations or diminish the rights of lessee, including, but not limited to, the location and drilling of wells and the measurement of production.
Notwithstanding any other actual or constructive knowledge or notice thereof of or to lessee, its successors or assigns, no change or division in the ownership of said land or of the royalties, or other moneys, or the right to receive the same,
howsoever effected, shall be binding upon the then record owner of this lease until thirty (30) days after there has been furnished to such record owner at his or its principal place of business by lessor or lessor’s heirs, successors, or
assigns, notice of such change or division, supported by either originals or duly certified copies of the instruments which have been properly filed for record and which evidence such change or division, and of such court records and proceedings,
transcripts, or other documents as shall be necessary in the opinion of such record owner to establish the validity of such change or division. If any such change in ownership occurs by reason of the death of the owner, lessee may, nevertheless pay
or tender such royalties, or other moneys, or part thereof, to the credit of the decedent in a depository bank provided for above. 
  
 9. In the event lessor considers that lessee has not complied with all its obligations hereunder, both express and implied, 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 its obligations hereunder. If this lease is cancelled for any cause, it
shall nevertheless remain in force and effect as to (1) sufficient acreage around each well as to which there are operations to constitute a drilling or maximum allowable unit under applicable governmental regulations, (but in no event less than
forty acres), such acreage to be designated by lessee as nearly as practicable in the form of a square centered at the well, or in such shape as then existing spacing rules require; and (2) any part of said land included in a pooled unit on which
there are operations. Lessee shall also have such easements on said land as are necessary to operations on the acreage so retained. 
  
 10. Lessor hereby warrants and agrees to defend title to said land against the claims of all persons whomsoever. Lessor’s rights and interests
hereunder shall be charged primarily with any mortgages, taxes or other liens, or interest and other charges on said land, but lessor agrees that lessee shall have the right at any time to pay or reduce same for lessor, either before or after
maturity, and be subrogated to the rights of the holder thereof and to deduct amounts so paid from royalties or other payments payable or which may become payable to lessor and/or assigns under this lease. If this lease covers a less interest in the
oil, gas, sulphur, or other minerals in all or any part of said land than the entire and undivided fee simple estate (whether lessor’s interest is herein specified or not), or no interest therein, then the royalties and other moneys accruing
from any part as to which this 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 out of the royalty herein provided. This lease shall be binding upon each party who executes it without regard to whether it is executed by all those named herein as
lessor. 
  
 11. If, while this lease is in force, at, or after the
expiration of the primary term hereof, it is not being continued in force by reason of the shut-in well provisions of paragraph 3 hereof, and lessee is not conducting operations on said land by reason of (1) any law, order, rule or regulation,
(whether or not subsequently determined to be invalid) or (2) any other cause, whether similar or dissimilar, (except financial) beyond the reasonable control of lessee, the primary term hereof shall be extended until the first anniversary date
hereof occurring ninety (90) or more days following the removal of such delaying cause, and this lease may be extended thereafter by operations as if such delay had not occurred. 
  
 IN WITNESS WHEREOF, this instrument is executed on the date first above written. 
  

					
			
	 /s/ Jimmy B Smith
	 	 	 	  
			
	  	 	 	 	  
			
	###-##-####	 	 	 	  
			
	LESSOR                                      
           SS. OR TAX I.D. NO	 	 	 	 LESSOR                                      
       SS. OR TAX I.D. NO.

  
 ACKNOWLEDGEMENT                 
  
 STATE OF LOUISIANA 
 COUNTY OF LIVINGSTON 
  
 This instrument was acknowledged
before me on the 19th day of January, 1995, by Jimmy B. Smith. 
  

	
	
	/s/ James E. Durbin
	 Notary Public, State of Louisiana

	 Notary’s name (printed): James E. Durbin

	
	 Notary’s commission expires:

  
 ACKNOWLEDGEMENT                 
  
 STATE OF 
 COUNTY OF 
  
 This instrument was acknowledged before me
on the                      day of
                         , 19    ,
by                                        

  

	
	
	 
	 Notary Public, State of Texas

	 Notary’s name (printed):

	
	 Notary’s commission expires: 
 CORPORATE ACKNOWLEDGEMENT

  
 STATE OF 
 COUNTY OF 
  
 This instrument was acknowledged before me on the
                     day of
                         , 19     , by
                    ,                     ,

 of
                                        
                                        
                    , 
 a
                                 corporation, on behalf of said corporation. 

 

	
	
	 
	 Notary Public, State of Texas

	 Notary’s name (printed):

	
	 Notary’s commission expires:

  
 COPY CUT-OFF

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]