Loading...
HomeMy WebLinkAboutRES 89-158 R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to approve the agreement attached hereto as Exhibit "A" , for the purchase of approximately 2, 184. 72 acres of land for construction of an artificial wetlands waste water treatment system. PASSED BY THE CITY COUNCIL of the City of Beaumont this the - day of wy 1 g 8 g Mayor - 124 "7z /yj _:uup CONTRACT OF SALE THE STATE OF TEXAS § COUNTY OF LIBERTY § This Agreement, made and entered into, by and be- tween HARRY HOLLOWAY, hereinafter called "SELLER", J. B. NEATHERY, SR. , as Agent for Seller, hereinafter called "AGENT", and the CITY OF BEAUMONT, a municipal corporation of the State of Texas, hereinafter called "PURCHASER" , and the parties agree as follows: W I T N E S S E T H 1 . Seller does hereby agree to sell and convey to Pur- chaser and Purchaser does hereby agree to purchase and acquire from Seller, upon the conditions and considerations hereinafter stated, THE SURFACE ONLY in and to the following real proper- ty and improvements in Jefferson County, Texas, to-wit: Approximately 2,184. 72 acres, more or less, and in accordance with the survey, as set out herein, out of the northern portion of the C. Hildebrandt Survey, A-28, as described in "EXHIBIT A" attached hereto and made a part hereof for all purposes (and all related water rights and permits, easements and rights-of-way hereafter called the "Property" ) . Seller does hereby agree to sell and convey to Pur- chaser and Purchaser does hereby agree to purchase fee title to the above described Property, specifically including all rights in the Property, subject to the "Permitted Exceptions" listed in "EXHIBIT B" attached hereto and made a part hereof for all purposes, and the reservations and exceptions set forth here- in. It is understood and agreed that Seller reserves from this conveyance all movable pumping equipment located on the above described Property. It is further understood and agreed between the parties hereto that Seller shall, in the Deed contemplated hereby, except, reserve and retain unto himself, his heirs, successors and assigns, forever, all of the oil, gas, sulphur and other minerals in, on, under and upon the tract of land described above, together with the right of ingress and egress upon said tract of land for the purpose of mining, drilling, producing, saving, extracting and exploring for said oil, gas, sulphur and other minerals, and together with all other rights appurtenant to the ownership of said oil, gas, sulphur and other minerals, subject however to the following limitations, to-wit: a) The foregoing operations shall be limited to six (6) three (3) acre drillsites, only one of which shall be located within the boundaries of each of the Drillsite Areas described in "EXHIBIT C" attached hereto and made a part hereof for all purposes. b) Drillsites shall be located by mutual agreement of the parties hereto, their heirs, successors or as- signs, and approval of locations shall not be unrea- sonably withheld by Grantee, its successors or as- signs. Drillsite criteria shall include the follow- ing, but not by way of limitation, to-wit: 1) Location shall not unreasonably interfere with the Grantee' s sewage treatment operations on the Property or other uses of the Property. 2) Locations and the foregoing exploration and drilling operations shall comply with applica- ble federal, state and local laws, rules and regulations for those operations and the opera- tions and uses by Grantee, its successors or assigns. C) Grantor, his heirs, successor, assigns, and lessees shall also be entitled to reasonable roadways. pipe- line and utility easements to each drillsite provid- ed for above, which approval shall not be unreason- ably withheld by Grantee, its successors or assigns, -2- subject to the foregoing criteria. All costs of upgrading and maintaining roads and levees for use in mineral exploration and drilling operations shall be borne by Grantor, his heirs, successors or as- signs. 2 . The purchase price is FOUR HUNDRED TWENTY-FIVE AND N01100 ($425 . 00) DOLLARS per acre with the total purchase price to be determined by a survey of the Property to be provided by Purchaser at Purchaser' s sole cost and expense. The total purchase price shall be paid in cash at closing. Of that total purchase price TWENTY THOUSAND AND N01100 ($20,000.00) DOLLARS cash has been deposited by Purchaser with the title company hereafter named for Seller as part payment, receipt of which is hereby acknowledged by said agent. Said TWENTY THOUSAND AND NO/100 ($20, 000. 00) DOLLARS shall be placed in escrow in an interest bearing account so that the interest accruing upon said TWENTY THOUSAND AND N01100 ($20, 000.00) DOLLARS may be determinable. The interest, if the Property is ultimately purchased by Purchaser, shall be credited to the purchase price of the Property. The interest bearing account provided herein shall be established at a financial institution in Beaumont, Jefferson County, Texas, which is mutually agreeable to Seller and Purchaser. Purchaser' s obligation to purchase hereunder is specifically conditioned upon the following matters: a) Seller shall furnish to Purchaser a title commitment showing good and merchantable title in Seller, sub- ject to the Permitted Exceptions, issued by Jeffer- son County Title Company. b) The Environmental Protection Agency must approve the use of the subject Property for a Constructed Wet- lands Waste Treatment System. -3- C) Soil borings, to be taken on the Property, must confirm that the subject Property is suitable for use by Purchaser as a Constructed Wetlands Waste Treatment System. d) Seller shall allow Purchaser reasonable access to the subject Property for the performance of neces- sary soil borings. Failure of any of the above conditions will, at the election of Purchaser, require return of the earnest money and all accrued interest to Purchaser. In such event, this con- tract shall be cancelled and all parties released thereby. 3 . Seller agrees to furnish an Owner' s Title Policy issued by Jefferson County Title Company at Seller' s own cost and expense. For purposes of this contract and within the time period stipulated, an Owner' s Title Policy will be considered as furnishing good title as herein contracted to be furnished. Seller agrees to apply for the issuance of such title policy within such time to allow the issuance of the title policy on or before Sixty (60) days from the day of the execution of this contract. If the title company issues a title report commit- ting to issue an owner' s title policy to Purchaser, the all parties agree that Seller shall have complied with Seller' s obligation to furnish good and merchantable title. In the event Purchaser fails in its obligations under this contract, the earnest money and accrued interest hereof shall be paid over to Seller as liquidated damages for breach of this con- tract and all parties shall be released of all liability hereun- der. If the title company' s attorney makes objection to said title, then Seller shall, within the thirty (30) days after receipt of the title commitment, cure such objections in order to show good title in Seller. The existing mortgage held -4- by Woodforest National Bank shall be paid in full and a release provided by Seller at or prior to closing. In the event of failure to furnish good title, at the election of the Pur- chaser, the earnest money shall be returned to Purchaser with all accrued interest and this contract shall be cancelled and all parties released thereby. Purchaser shall have the option to wave the objections and proceed to close without diminution of terms and price. The term "Owner' s Title Policy" , as used herein, shall be construed to mean the owner'.s title policy now in use in the State of Texas with deletion of exceptions regard- ing a) conflicts in area and boundaries and b) rights of par- ties in possession. 4. If Seller complies with its obligations to furnish good and merchantable title, as provided herein, and all condi- tions of Paragraph 2 are met, then the parties shall proceed to close within ten (10) days after conditions in Paragraph 2(a) through 2(d) above are satisfied, but not later than JX blMy4V 1990 i'll 31, X282. Closing shall occur in the offices of the title company issuing the title commitment provided for herein. At closing Purchaser shall deliver a check to the escrow agent for the cash purchase price of the property less the TWENTY THOU- SAND AND - NO/100 ($20, 000. 00) DOLLARS earnest money heretofore paid and all accrued interest. Seller shall -deliver to Pur- chaser a General Warranty Deed fully executed and acknowledged by Seller conveying the Purchaser fee simple title to the sub- ject tract, subject to the reservations herein and the permit- ted exceptions. Seller shall deliver possession of the proper- ty to Purchaser. Seller shall furnish evidence of payment of all taxes to and including the year 1988 and certificates of taxes paid from all authorities assessing taxes on the subject tract, and taxes for the current year shall be prorated between Seller and Purchaser as of the date of closing. Seller shall -5- pay the Texas promulgated premium chargeable for issuance of Owner' s Title Policy for the full amount of the consideration paid for the subject . tract. Seller shall pay any and all real estate commissions or fees due and arising from the sale contem- plated by this contract. 5 . Any commissions relating to the sale of the above described property shall be paid at closing by Seller to J. B. Neathery, Sr. , Agent. 6. Any notice required or permitted to be given hereun- der by one party to the order shall be in writing and the same shall be given and be deemed to have been served and given if delivered in person to the address set forth hereinafter for the party to whom the notice is given, or if placed in the United States mail, postage prepaid, by United States Regis- tered or Certified Mail, addressed to the party at the address hereinafter specified. The address of the Seller for all pur- poses under this agreement and for all notices shall be: HARRY HOLLOWAY 104 E. Clayton Dayton, Texas 77535 EDWARD B. PICKETT P. 0. Box 10225 ATTORNEY FOR HARRY HOLLOWAY Liberty, Texas 77575-0225 The address of the Purchaser for all purposes under this agreement and for all notices hereunder shall be: RAY RILEY P. 0. Box 3827 CITY MANAGER Beaumont, Texas 77704 CITY OF BEAUMONT From time to time either party may designate another address for all purposes of this agreement by giving the other party not less than five (5) days advance written notice of such change of address in accordance with the provisions hereof. -6- 7. This agreement shall be binding upon, extend to and inure to the benefit of the heirs, successors and assigns of the respective parties. 8. Both, Seller and Purchaser, agree that each will do all things necessary or required to effect the conclusion of the sale and purchase of this property under the terms and conditions herein set forth, will comply with the agreements herein contained, including the execution of all necessary papers and documents therefore, and have executed this contract in duplicate counterparts, each of which shall have the force and effect of an original as of the da y of 1989. Harry Hol o ay LER CITY OFF BEAAUMONT BY.. 1 L A Ray Riley PURCHASER Seller agrees to pay the undersigned duly authorized agent a commission of TWENTY-SEVEN THOUSAND EIGHT HUNDRED FIF- TY-FIVE AND N01100 ($27, 855.00) DOLLARS in cash for negotiating this sale. . B. eat ry, Sr. -7- ~�CHIBIT A- That certain tract of land out of the northern portion of the Christian Hillebrandt League, Abstract No. 28, Jefferson County, Texas, which is described in those two deeds to Nona Mills Company, one of such deeds being from W. A. Cameron, et al and being dated April 26, 1906, and recorded in Volume 89, Page 636, of the Deed Records, of Jefferson County, Texas, and other deed being from J. M. McClure and being dated April 27, 1906, and recorded in Volume 89, Page 639, of the Deed Records, of Jefferson County, Texas, such tract of land upon recent re-survey being more particularly described by metes and bounds as follows: Being a 2,184.72 acre tract of land out of the northern portion of the C. Hillebrandt Survey, Abstract 28 adjacent to the southern city limits line of the City of Beaumont, Jefferson County, Texas and being the same tract of land described in a conveyance from W. A. Cameron, et al to Nona Mills Company recorded in Volume 89, Page 6360 Deed Records, Jefferson County, Texas and being more particularly described by metes and bounds as follows: BEGINNING +tt a galzanized pipe which marks the northwest corner of the C. Hillebrandt Survey and the southwest corner of the James Rowe Survey, Abstract 45, said corner also being the northwest corner of the tract herein described and being in the east line of the S. Stivers Survey, Abstract 51 and in the east line of Tyrrell Park and the city limit line of the City of Beaumont; THENCE S 89 deg. 47' 07" E. along the north line of the Hillebrandt Survey and the south line of the Rowe Survey and along an old fence line, a distance of 5,580.55 feet to a concrete monument for corner; THENCE S 00 deg. 44' 39' W, continuing along an old fence, a distance of 3,110.83 feet to a galzanized pipe for corner; ' THENCE S 88 deg. 58' 11" E, along the general line of the old fence, a distance of 1,478.22 feet to a galvanized pipe for corner, in the west line of the M. Grange Survey, Abstract 26 and the east line of the Hillebrandt Survey, 14.5 feet south of the northwest corner of the Grange Survey; THENCE S 00 deg. 15' 31" W, following along the general line of the old fence, a distance of 13,232.92 feet to a galzanized pipe for the southeast corner of the tract herein described, said course being along the common survey line of the Hillebrandt Surveys; THENCE N 86 deg. 28' 30" W, along a fence line to the east bank of Hillebrandt Bayou, crossing said bayou and along the north edge of a portion of the abandoned bayou, a distance of 993.73 feet to a galvanized pipe for corner; THENCE in a westerly and southerly direction along the north edge of the abandoned bayou, the following courses and distances: N 89 deg. 47' 00" W, a distance of 272.15 feet, galvanized pipe for corner; N 82 deg. 34' 28" W, a distance of 141.98 feet, galvanized pipe for corner; S 84 deg. 11' 30" W. a distance of 117.98 feet, galzanized pipe for corner; S 40 deg. 30' 55' W, a distance of 160.00 feet, galzanized pipe for corner; S 24 deg. 56' 25" W, a distance of 232.06 feet, galzanized pipe for corner in a fence line running generally east and west; THENCE in a northerly and westerly direction, along the fence line the following chord distances: N 75 deg. 41' 50" W. a distance of 163.53 feet; N 79 deg. 55' 55" W, a distance of 249.45 feet; N 42 deg. 59' 26" W, a distance of 480.02 feet; N 41 deg. 46' 01" W, a distance of 142.68 feet; ,EXHIBIT A" "EXHIBIT A" N 30 deg. 21' 06" W. a distance of 300.00 feet; N 20 deg. 18147" W, a distance of 247.26 feet; N 14 deg. 30122" W, a distance of 400.42 feet; N 20 deg. 15' 22" W, a distance of 395.22 feet; N 19 deg. 56' 14" W, a distance of 871.95 feet; N 17 deg. 40' 23" W. a distance of 533.88 feet; N 19 deg. 31' 10" W, a distance of 767.13 feet; N 29 deg. 461 02" W. a distance of 75.89 feet; N 57 deg. 20158" W, a distance of 527.04 feet; N 64 deg. 00' 33" W. a distance of 232.27 feet; N 74 deg. 17' 23" W, a distance of 303.42 feet; N 81 deg. 16' 33" W. a distance of 321.01 feet; N 71 deg. 26' 50" W, a distance of 436.51 feet; S 54 deg. 26' 07" W, a distance of 280.26 feet; S 67 deg. 33' 16" W, a distance of 560.68 feet; S 64 deg. 22' 48" W, a distance of 871.07 feet to galvanized pipe in the west line of the Hillebrandt Survey and the east line of the S. Corzine, Abstract 14; THENCE N 00 deg. 00' 12" E, along a fence line and along the common line of the 'Hillebrandt and Corzine Surveys, a distance of 1,714.37 feet to a galvanized pipe for angle point; THENCE N 00 deg. 13' 00" E, continuing along said fence and common survey line, a distance 3,095.63 feet to angle point on south bank of Willow Marsh Bayou; of THENCE N 00 deg. ill 35" E, continuing along said fence and common survey line, a distance of 2,139.10 feet to a galvanized pipe for corner at the northeast corner of the Corzine Survey and the southeast corner of the Stivers Survey; THENCE N 00 deg. 04' 49" E, continuing along said fence and along the East line of Tyrrell Park and the city limits line of Beaumont, Texas, a distance of 59895.02 feet to the PLACE OF BEGINNING and containing in area, 21184.72 acres of land, more or less. "E XHI9IT All OEXI-11BI]' d f. Right of way deed from drainage purposes from Nona Mills Company to Jefferson County Drainage District No. 6, recorded in Vol. 251, Page 150, Deed Records, Jefferson County, Texas. 2. Drainage easement from Nona Mills Company to Jefferson County Drainage Distract No. 6, recorded in Vol. 696, Page 189, of the Deed Records of Jefferson County, Texas. 3. Drainage easement from Nona Mills Company to Jefferson County Drainage District No. 6, recorded in Vol. 1256, Page 534, of the • Deed Records of Jefferson County, Texas. 4. Drainage easement from Nona Mills Company to Jefferson County Drainage District No. 6, recorded in Vol. 1493, Page 307, of-the Deed Records of Jefferson County, Texas. 5. Drainage easement from Nona Mills Company to Jefferson County Drainage District No. 6, recorded in Vol. 1538, Page 198, of the Deed Records of Jefferson County, Texas. 6. Pipe line easement from Nona Mills Company to Atlantic Pipe Line Company, recorded in Vol. 310, Page 14 of the Deed Records of Jefferson County, Texas. 7. Pipe line easement from Nona Mills Company to W. M. Averill, recorded in Vol. 347, Page 483, of the Deed Records of Jefferson County, Texas. Said pipe line easement was assigned to Pure-Van Pipe Line Company by instrument recorded in Vol. 347, Page 494, of the Deed Records of Jefferson County, Texas. S. Utility Easement from Nona Mills Company to Gulf States Utilities Company, recorded in Vol. 337, Page 549, of the Deed Records of Jefferson County, Texas. 9. Pipe line easement from Nona Mills Company to Sun Pipe Line Company recorded in Vol. 357, Page 595, of the Deed Records of Jefferson County, Texas. v 10. Pipe line easement from Nona Mills Company to Texas Pipe Line Company recorded in Vol. 361, Page 225, of the Deed Records of Jefferson County, Texas. 11. Right of way deed for road purposes from Nona Mills Co to Jefferson County, State of Texas, recorded in Vol. 383, Page 339 of the Deed Records of Jefferson County, Texas. 12. Pipe line easement from Nona Mills Company to Magnolia Pipe Line Comfy, recorded in Vol. 654, Page 637, of the Deed Records of Jefferson County, Texas. 13. Pipe line easement from Nona Mills Company to Glenn H. recorded in Vol. 606, Page 427, of the Deed Records of McCarthy,, County, Texas. 14. Pipe line easement from Nona Mills Company to Texas Company, recorded in Vol. 886, Page 211, of the Deed Records of Jefferson County, Texas. 15. Pipe line easement from Nona Mills Company to Houston Pipe Line Company, recorded in Vol. 1176, Page 64, of the Deed Records of Jefferson County, Texas. 16. Pipe line easement from Nona Mills Company to Socony Mobil Oil Company, Inc., recorded in Vol. 1245, Page 261 of the Deed Records of Jefferson County, Texas. 'EXHIBIT A" 17. Pipe line easement from Nona Mills Company to Service Pipe Line Company, recorded in Vol. 1301, Page 510, of the Deed Records of Jefferson County, Texas. 18. Pipe line easement from Appelt Properties No. 1, Ltd. to Mobil Pipe Line Company, recorded in Vol. 1665, Page 350, of the Deed Records of Jefferson County, Texas. 19. Pipe line easement from Appelt Properties No. 1, Ltd. to Mobil Pipe Line Company, recorded in Vol. 1687, Page 343 of the Deed Records of Jefferson County, Texas. 20. Easement to Gulf States Utilities Company awarded by Judgement in Cause No. 25464 in the County Court of Jefferson County, Texas. Certified copy of said judgement has been filed for record in Vol. 1857, Page 309 in the Deed Records of Jefferson County, Texas. 21. Pipe line easement from Appelt Properties No. 1, Ltd. to Texas Pipeline Company, recorded in Vol. 1856, Page 369, in the Deed Records of Jefferson County, Texas. Such easement superceding the easement described in Vol. 361, Page 225 of the Deed Records of Jefferson County, Texas. 22. 1/16th royalty interest in all of the oil, gas and other minerals in and under the herein described property reserved by Appelt Properties No. 1, Ltd. in instrument recorded in Vol. 1861, Page 329 of the Deed Records of Jefferson County, Texas. 23. Seismic Agreement dated February 5, 1989 from Harry Holloway to Kilroy Company of Texas, Inc. recorded under Clerk's Film Code No. 102-59-2354 in the Real Property Records of Jefferson County, Texas. 24. Subordination Agreement "of Seismic Option Agreement dated February 3, 1989 between Woodforest National Bank and Rilroy Company of Texas, Inc. recorded under Clerk's Film Code No. 102- 62-1794 in the Real Property Records of Jefferson County, Texas. 25. Ratification of Seismic Agreement dated February 3, 1989 betweem Christie E. Holloway, Individually & as the wife of Harry Holloway and Kilroy Company of Texas, Inc. recorded under Clerk's Film Code No. 102-62-1798 in the Real Property Records of Jefferson County, Texas. 26. Restrictions as set forth in instrument subject to the reservation contained in Deed fran Appelt Properties No. 1 LTD to William Thomas Wilkins dated December 18, 1974, recorded in Vol. 1861, Page 329, Deed Records of Jefferson County, Texas. 27. The Texas Water C nTnission to Hillebrandt Plantation LTD. , dated April 30, 1981, recorded in Vol. 2, Page 257, of the Water Permit Records; amended by instrument dated July 8, 1982, recorded in Vol. 2, Page 264; Water permit Records and assigned to Hillebrandt Plantation LTD. to The Prudential .Insurance Company of America by assignment dated June 3, 1981, recorded in Vol. 2, Page 259, Water Permit Records of Jefferson County, Texas. "EXHIBIT B" 28. Pipe Dine easement fran Nona Mills Catpany to Hurrprey Pure Oil Pipe Line C apany, recorded in Vol. 213, Page 164, Deed Records of Jefferson County, Texas. 29. Pipe Line easement fran William T. Wilkins to United Texas Transmission CaYPany, recorded in Vol. 2250, Page 70, of the Deed Records of Jefferson County, Texas. 30. Pipe Line easement fran Hillebrandt Plantation Limited, a Texas Limited partnership to Mobil Oil Corporation, recorded in Vol. 2237, Page 65, Deed Records of Jefferson County, Texas. "EXHIBIT B" °EXHIBIT C° DRILLSITE AREA NUMBER ONE (1) Beginning at the Northwest corner of the Property; THENCE South 890 47' 07" East with the North line of the Property to the centerline of Hillebrandt Bayou; THENCE Southerly with the centerline of Hilebrandt Bayou to the North line of the Gulf States Utilities Co. 150 foot right-of-way described in Vol. 337, Page 549, of the Deed Records of Jefferson County, Texas. THENCE Southwesterly with the North line of said Gulf States Utilities 150 foot right-of-way to the West line of the Property; THENCE North 00 04' 49" East with the West line of the Property to the PLACE OF BEGINNING. DRILLSITE AREA NUMBER TWO (2) Beginning at the Southwest corner of Drillsite Area Number One (1) above; THENCE Northeasterly with the said Gulf States Utilities Co. 150 foot right-of-way to the Southeast corner of said Drillsite Are Number Two (2) ; THENCE Southeasterly with the centerline of Hilebrandt Bayou to the intersection with the North line of the Gulf States Utilities Co. 160 foot right-of-way described in Vol. 4, Page 100, of the County Court at Law No. 2 Minutes; THENCE Northwesterly with the North line of said Gulf States Utilities 160 foot right-of-way to the West line of the Property; THENCE North with the West line of the Property to the PLACE OF BEGINNING. DRILLSITE AREA NUMBER THREE (3 ) Beginning at the Southwest corner of Drillsite Area Number Two (2) ; THENCE Southeasterly with the North Right-of-way line of the Gulf States Utilities 160 foot right-of-way to the centerline of Hillebrandt Bayou; THENCE Southerly with the centerline of Hillebrandt Bayou to the South line of the Property; THENCE Northwesterly with the meanders of the South line of the Property to the Southwest corner of the Property; THENCE North with the West line of the Property to the PLACE OF BEGINNING. "E} BIT C" w. DRILLSITE AREA NUMBER FOUR (4) Beginning at the Southeast corner of the Property; THENCE North with the East line of the Property to the intersection with the North line of Gulf States Utilities 160 foot right-of-way described in Vol. 4, Page 100, of the County Court at Law Minutes; THENCE West with the North line of said right-of-way tothe Northeast corner of Drillsite Area Number Three (3) ; THENCE Southerly with the centerline of Hillebrandt Bayou to the South line of the Property; THENCE East with the South line of the property to the PLACE OF BEGINNING. DRILLSITE AREA NUMBER FIVE (5) Beginning at the Northeast corner of Drillsite Area Number Four (4) ; THENCE North with the East line of the Property to the intersection with the centerline of an 80 foot road right-of-way described in Vol. 383, page 339, of the Deed Records of Jefferson County, Texas; THENCE Westerly with the centerline of said road right-of-way to the centerline of Hillebrandt Bayou; THENCE Southerly with the centerline of Hillebrandt Bayou to the Northwest corner of Drillsite Area Number Four (4) THENCE East with the North right-of-way line 'of the Drillsite Area Number Four (4) to the PLACE OF BEGINNING. DRILLSITE AREA NUMBER SIX (6) Beginning at the Northeast corner of Drillsite Area Number Five (5) ; THENCE North with the West line of the Property to the most Eastern Northeast corner thereof; THENCE North 880 58" West 1478.22 feet to an interior corner of the Property; THENCE North 000 44' 39" East 3110.83 feet to the most Northern Northeast corner of the Property; THENCE West with the North line of the Property to the centerline of Hillebrandt Bayou; THENCE South with the centerline of Hillebrandt Bayou to the Northwest corner of Drillside Area Number Five (5) ; THENCE Southeasterly with the North line of Drillsite Are Number Five (5) to the PLACE OF BEGINNING. References in the foregoing description are primarily to the physical features and instrument references shown on plat prepared by Matt M. Racki, dated November 26, 1974. -2-