. -- rg . - . {Wy, . .-, 1.0/8/1re: 8*11*1*2 mass N0, gg!) DATE EXEGUTED: Pebruary 7, 1936. yi_.y. James A. Noe, Governor. LESSE3: William T. Burton. _iEg $75.000.00 cash ana $500,000 1n 011, gi`: payable out of proceeds of 1/128th. NUMBER OF ACRES: Estimated to exceed 500,000 acres. LOGATIGN: Parishes of Vermilion, Iberia, St. Mary and Terrebonne. (West Cote Blanche Bay). Harsh Island is a cepted from the lease, as well as that part of Yerm1l1o Bay lying ln Iberia Parish; that part of qd? Bayou Sale Bay and East Gote Blanche Bay bounded as follows: On the east a south by the shore 11ne of St. lary Parish, on the north by the north l1ne of Township 17 South, Range 9 East, and on the west by a 11ne due north from Pt. Ghevreuil to the north line of sa1d Township. REMARKS, RE BIDS: The of W. T. Burton eontaln no provision for an royalty or 011 payment but a $500,000.00 011 payment out of 1/128 of the f1rst 011 produced was provided for 1n the lease, aa hereto- fore stated. The Gulf Reflning Oompany submitted a bid offering $61,100.00 cash and a $1,250,000.00 011 payment payable out of 1/96. It should be noted 1n that connection that, whereas, Burt0n's cash bid of $75.000.00 was higher than the Gulf's bid of $61 100.00, the Burton 011 payment of $500,000.00 does not compare favorably w1th the 0ulf'a b1d respecting an oil payment. The Gulfos bid be1ng . -2- State Lease No. 3h0. $1,250,000.00 payable out of 1/96, whereas Burton's $500,000.00 oil pay- ment was payable out of 1/128. It ls also apparent from an examination of the lease that the provision for the #500,000.00 011 payment by Burton was inserted after the lease had been drawn. It appears in the form of a rider pasted on page 6 of the lease and supplementing paragraph thereof. The conclusion that the oil payment was inserted after the lease was originally drawn fl ds further support ln the fact that the proposed form of lease attached to Burton?s bid contained no provlzlon respecting an . oil payment or overriding royalty. ASSIGNMENTS: (1) Under dats of February 15, 1936. Burton assigned this lease to The Texas company for a consideration of 895,000.00 ln cash, . $10,000.00 cash whenever the rental ls pay ble to the lessor and a over- riding royalty on all gas, ell or other minerals produced. The assignment was approved by Governor Hoe on February 18, 19360 (2) der date of February 18, 1936, Burton assigned to the Win or Lose Corporation an undivided 3/h of all interest retained by him in his assignment to The Texas Company, and especially of the overriding royalty reserved. The considers- tlon of this transaction was $10.00 and other valuable considerations. REMARKS: It should be noted that this 1e?se was let February 7, 1936 and assigned to The Texas Company lbbruary 15, 1936 and The Texas Company paid $20,000.00 ln cash and a l/2h overriding royalty ln excess of the successful bid. The Texas Company submitted no bid for the lease from the S`bBt?a State Lease No. 3LO The conveyance records in the parishes affected by this lease have been examined by the Attorney General'e office and the information herein contained was partly obtained from that examination. REMARKS: We heve no technical report re development on this lease, but we are informed that production has been secured from at least one well and that further operations are now being carried on. II ll sum must gg Bids accepted February 4, 1956 . 7 I Sold to I. T. Burton February 1956 $75,000 I Sold by I. T. Burton To The Texas Company February 15, 1956 #95,000 I Sale approved by Governor on February 18, 1956 . Other Considerations: I Burton tc retain 1/24 overriding Royalty. In addition #10 ,000 annual rental to run concurrently 8tateos rental ot I $500,000 oll payment due the State of Louisiana out of 1/128th, One well to 50,000 acres surrounding same. Rental to be perpetual until at least three tracts of 50,000 acres are held by development. Burton warrants title and that cash consideration mentioned has actually been paid. All of Burton*s l/24th interest and. rentals are to be paid to him or to his agent, The Calcasieu-larine National Bank of Lake Charles, Louisiana. Now: Recent payments by The Texas Company reveal the overriding royalty ls being paid -- 1/96th to I. T. Burton and 1/52nd to Iln or Lose. Lease shows production time during quarter ending Jun! ml, Called State lest Cote Blanche Bay Lease. I RE: State Lease No. 540 I I 'lhls lea was granted by Governor James A. Noe to W. T. Burton on February 7, 1956 and covers some 570,000 acres of State lands in Vermilion, Iberia, St. Mary and Terrebonne Parishes. cam bonus is $75,000.00, term is five years and the annual rental ls $57,500.00 to be paid until at least three wells have been commenced, In addition, there is also a provision for a $500,000.00 011 payment out of 1/128th. This lease should be checked carefully to see if properly advertised, particularly as to the description of the lands to be leased. '1'ns lease was assigned to the 'lbxas Company on February 15, 1956 and the assignment approved by Governor Noe on February 18, 1956. The consideration for the assignment was $95,000.00 cash, $10,000.00 rental annually to be paid under the set out in the lease for rental paynents, and a l/24 overriding royalty over and above the royalty to be paid the lessor on all 011 produced. I 'hze bid of W. T. Burton submitted ln accordance with the adverti- sements contained no provision for an overriding royalty, but several other bids which were later rejected did provide for such a royalty, the hlghest one being that of the Gulf Company, which offered a overriding royalty, payable out of l/96. None of the bonuses offered, however, were as high as &zrton's - that of the Gulf Company being next and to the sum of $61,100.00 with a rental of $co,sso.co. An examination of the lease plainly shows that the provision calling for the overriding royalty was inserted ln the lease after the lease had been originally drawn. It 1s a rider pasted onto page 6 of the lease in pamgraph 4. Hr. Burton submitted with his offer a copy of a form lease which he proposed to execute. 'mis form lease ls apparently identical with the lease finally executed, ecxcept that the overriding royalty provision was added to the lease as finally executed. The main point to be considered, therefore, ls whether or not the lease was granted to the person submitting the most advantageous bid as required by law. Edward J. Cay, Ir. {/pc fl .5 . .. dypg? Goav [qlyti.} if I .5 I i RE STATE LEASE IQO. 540. I Lease dated February 'Tth, 1956, from State of Louisiana to William T. Burton, said lease covers the following described property situated ln the Parishes of Vermillion, Iberia, St. lary and Terrebonne: "All of the property now or formerly constituting the I beds and other bottoms of lagoons, lakes, gulf bays, coves, sounds, inlets and other water bodies, and also all islands and other lands belonging to the State of Louisiana and not under lease from the State on the date of application, namely, Jan. Sth, 1956, and belng situated or included within the I following described boundaries: Beginning on the mean high water line at the most westerly tip of Terrebonne Parish, La., known as Pointe au Fer, and running along said mean high water line as it follows the shores of Atchafalaya Bay, Four League Bay, East Bay, Hor- r1son*s Gut-off, Bayou Sale Bay, East Cote Blanche Bay, West Cote Blanche Bay, Jaws or Little Bay, Vermilion Bay, Weeks Bay, and of all lagoons, lakes, bays, coves, sounds, inlets, and other water bodies adjoining or forming arms of said named bays, excluding, however, all rivers, creeks, streams or bayous tributary thereto, said mean high water 11ne, with the exception of that part bordering Four League Bay or arms thereof, following the shores of Terrebonne, St. llary, Iberia, and Vermilion Parishes, to the most eastern point on that pro- mentory of land forming the west side of Southwest Pass; thence in a general westerly direction along the shore of the Gulf of llexlco to the d1v1d1ng line between Cameron and Vermilion Par- ishes; thence south along said dividing line into the marginal or maritime belt of the Gulf of lexico to the extreme limit or boundary of the domain, territory, and sovereignty of the State of Louisiana; thence easterly along said limit or boundary to a point due south of place of beginning; thence north to place of beginning, including in particular the beds and bot- toms of Vermilion Bay, Weeks Bay, West Cote Blanche Bay, Jaws or Little Bay, East Cote Blanche Bay, Bayou Sale Bay, Hor- r1son*s Cut-off, East Bay, Atohafalaya Bay and Four League Bay, Southwest Pass and part of the Gulf of liexlco; this particularl- sation, however, not being or intended to be all-lnoluslve. LESS AND EXCEPT MARSH ISLAND and the beds and bottoms underlying the following three described tracts; Tract That part of Vermilion Bay lying Lal uerl Tract That part of Vermilion Bay lying in Iberia Parish. Tract 5/ That part of Bayou Sale Bay and East Cote Blanche Bay bounded as follows: 'On the east and south by the shore line of St. lary Parish, on the north by the north line of Town- ship South - Range 9 East, Loui lana Ierldlen, and on the west by a line running due north from Pt. Chevreull to the north line of said township'. All of the above described property lying within the Parishes of Vermilion, Iberia, St. Mary, and Terrebonne, State of Loulsiana." I i I LEASE NO. 540, TEREBONNE PARISH State of Louisiana. to lm. T. Burton - Lease. Original lease not on file; only photostat w1th certificate of identity with original stated to be on file in Iberia Parish. Photostat is identical with our file copy. RECORDED: C. 0. B. 108, Folio 504, Entry No. 20,681. DITE OF RECORDATION: Karch 26th, 1956. lm. T. Burton to The Texas Company - Assignment. February 15th, 1956. RECORDED: C. O. B. 108, Folio 508, Entry Nc. 20,682. DATE OF RECORDATION: March 26th, 1956. DESCRIPTION: Same as in Lease No. 540. INTEREST A11 ass1gnor*s lnterest in and to Lease No. 540, subject to override set out below. CONSIDHIATION: #95,000.00 cash and further as follows: 1. $10,000.00 cash whenever rental ls paid to lessor. 2. 1/24 overriding royalty on all oil, gas or other mlnerals produced. Assignment approved by Governor Noe on February 18th, 1956. Original assignment not on file; only photostat with certificate of identity original stated to be on file in Iberia Parish. Acknowledged by Burton before W. W. Thompson, Notary rubnnu, for Calcasleu Parish, La., on February 15th, 1956. Aclmowledged. by R. C. Stewart for Texas Company before R. H. Ferguson, Notary Public for Caddo Parish, La., on February 15th, 1956. I. T. Burton to lin or Lose Corporation - Assignment. February 18th, 1956. RECORDED: C. 0. B. 126, Folio 68, Entry No. 40,155. DATE OF RECORDATION: Hay 20th, 1940. DESCRIPTION: Same as in Lease Nc. 540. INTEREST CONVEYED: Undivided 5/4 cf all lnterests retained by . in assignment to Texas Company dated February 15th, 1956, especlally 5/4 of the 1/24 overriding royalty reserved. Also lf Texas Company any of said lease to Burton, lin or Lose Corporation shall own 5/4 of whatever inter- est ls reassigned upon paying to Burton 5/4 of whatever price I he pays for said reassignment. CONSIDERATION: $10.00 and other valuable considerations. Original not on file; only carbon copy purporting to be i signed by Seymour Weiss representing Hin or Lose Corporation as Vice-President. Certificate of identity original stated to be on flle in Iberia Parish. I Acknowledged by Burton before Gladys P. HcGuffey, Notary Public for East Baton Rouge Parish, La., on February 18th, 1956. Acknowledged by Welss for Win or Lose Corporation before Charles J. Rivet, Notary Public for Orleans Parish, La., on Aprll 18th, 1956. IBERIA PARISH. State of Louisiana to Wm. T. Burton - Lease. Carbon copy signed in original on file ln this Same ls identical with our file copy. RECORDED: C. O. B. 126, Folio 185, mtry Ho. 49,254. DATE OF RECORDATION: March 17th, 1956. 011 payment provision is a rider pasted on to original lease - not initlaled or signed. Im. T. Burton to The Texas Company - Assignment. DAQ February 15th, 1956. C. O. B. 126, Folio 188, mtry Ho. 49,255. DATE OF larch. 17th, 1956. Identlcally same comments as in respect to corresponding instrument in Terrebonne Parish - Except: Carbon copy signed in original is on file in this parish. Wm. T. Burton to Win or Lose Corporation A I February 18th, 1956. C. O. B. 142, Folio 528, mtry No. 57,854. I DATE OF RECORDATION: lay 15th, 1940. Same identical comnents as in respect to corresponding I instrument in Terrebonne Parish - Egg; Original not on file; only a copy certified by Clerk of Cou.rt of Vermillion Parish. as being identical with original on file in his office, Date of certification - Hay 15th, 1940. lin or Lose Corporation represented by Seymour Weiss, . V1ce?Pres1dent . I Aclmowledged by Burton before Gladys P. Ncduffey, Notary I Public, East hton Rouge Parish, La. Acknowledged by Ieiss before Charles J. Rivet, Notary Public, Orleans Parish, La. VERHILLIOH PARISH State of Louisiana to Im. T. Burton - Lease. Carbon copy signed in original on file in this parish. Same is identical with our file copy. RECORDED: C. 0. B. 124, Folio 615, mtry No, DATE OF Harsh l'Ith, 1956. 011 payment provision is a rider pasted on to original lease - not zlnitlaled or signed. Wm. T. Burton to The Texas Company - Assignment. February 15th, 1956. RECORDED: C. 0. B. 126, Folio 115, Ho. 57,956. DATE OF RECORDATION: Narch 21st, 1956. Identlcally same coments as in respect to corresponding instrument in Terrebonne Parish, except as to photostatic copy. Acknowile dged by Burton before W. W. Thompson, Notary Public for Calcasieu Parish, La., on February 15th, 1956. Acknowledged by R. C. Stewart for The Tecxas Company before R. H. Ferguson, Notary Public for Caddo Parish, La., on February 15th, 1956. . Or1g1nal assignment not on file; only photostat with certificate by Clerk of Court of Iberia Parish, dated March 18, 1956 as to identity with original on file in that office. I Im. T. Burton to lin or Lose Corporation Assignment. February 18th, 1956. I RECORDED: C. O. B. 150, Folio 197, mtry No. 70,877. DATE OF RECORDATION: Hay 9th, 1940. Same identical coments as in respect to corresponding 'instrument in Terrebonne Parish, except as to whether original, copy or photostat. This 1s the original signed instrument. lin or Lose Corporation represented by Seymour Weiss, I Vice-President. Acknowledged by Burton before Gladys P. lcGuffey, Notary Public, for East Baton Rouge Parish, La., on February 18th, 1956. Acknowledged by Weiss for or Lose corporatlcn before Charles J. Rivet, Notary Public for Orleans Parish, La., on April 18th, 1956. ST. MARY PARISH. State of Louisiana to Wm. T. Burton - Lease. Carbon copy signed ln original on file 1n this parish. Same is identical with our file copy. RECORDED: C. 0. B. 5-F, Folio 587, mtry No. 60,191. DATE OF RECORDATIOH: March 17th, 1956. 011 payment provision is a rider pasted on to original lease - not inltialed or slgned. Im. T. Burton to The Texas Company - Assignment. February 15th, 1956. HCORDED: C. O. B. 5-F, Folio 416, mtry Nc. 60,211. DATE RECORDATION: March 25:rd, 1956. Identically same comments as ln respect to corresponding instrument in Terrebonne Parish, except as to whethecr original, or Dlwtostat. Acknowledged by Burton before H. W. Thompson, Notary I Public for Calcasleu Parish, La., on February 15th, 1956. Acknowledged by R. C. Stewart for Texas Company before R. H. Ferguson, Notary Public for Caddo Parish, La., on February 15th, 1956. Original instrument not on file; only photostat with certificate of Clerk of Court of Iberia Parish, dated Narch 18th, 1956 as to with orlginal on flle in that office. Wm. T. Burton to Win or Lose Corporation - Assignment. gg; February 18th, 1956. RECORDED: C. 0. B. 5-V, Folio 544, mtry No. 66,150. DATE OF RECORDATION: Nay 17th, 1940. Same ldentlcal comments as in respect to corresponding instrument in Terrebonne Parish, except as to whether original, copy or photostat. Original not on file; only a copy certified by Clerk of Court of Parish as being identical with original on file in his office. Date of Certification - Nay 15th, 1940. lin or Lose Corporation represented by Seymour Weiss, Aclmowledged by Burton before Gladys P. lIcGuffey, Notary Public for East Baton Rouge Parish, La., on February 18th, 1956. Acknovledged by Weiss for Win or Lose Corporation before Charles J. Rivet, Notary Publlc for Orleans Parish, La., on April 18th, 1940. I I I