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Objection Deadline: October 26, 2012 at 4:00 p.m. Hearing Date: November 6, 2012 at 10:00 a.m.
LIQUIDATING DEBTORS MOTION FOR ORDER APPROVING ASSIGNMENT OF ASSETS TO HILCORP ALASKA, LLC AND DISTRIBUTION OF THE PROCEEDS THEREOF Pacific Energy Resources Ltd., Pacific Energy Alaska Holdings, LLC and Pacific Energy Alaska Operating LLC (the "Liquidating Debtors") move this Court for entry of an order approving the assignment of certain assets to Hilcorp Alaska, LLC and the distribution of the proceeds thereof (the "Motion"). 2 In support of the Motion, the Liquidating Debtors represent the following: JURISDICTION 1. This Court has jurisdiction over this Motion under 28 U.S.C. 157 and
1334 and pursuant to the Confirmation Order and the Plan. See Confirmation Order, 13
The Liquidating Debtors (and the last four digits of each of their federal tax identification numbers) are: Pacific Energy Resources Ltd. (3442); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available), and Pacific Energy Alaska Operating LLC (7021).
2 Capitalized terms that are not expressly defined herein shall have the meanings ascribed to such terms in the First Amended Chapter 11 Plan of Liquidation for Pacific Energy Resources Lid, et al., as Modified (the "Plan"), as such Plan was confirmed by the Order Confirming First Amended Chapter 11 Plan of Liquidation for Pacific Energy Resources Ltd, etal., as Modified [Docket No. 2088] (the "Confirmation Order"), which was entered by the Bankruptcy Court on December 15, 2010.
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(adopting retained jurisdiction under Article XIV of Plan) and Plan XIV(A) (4), (5), (6), (7), (8), (10), (18) and (19). 2. This matter is a core proceeding within the meaning of 28 U.S.C.
157(b)(2) (A), (L), (N) and (0). Venue of this proceeding and this Motion is proper in this District pursuant to 28 U.S.C. 1408 and 1409. 3. requested herein. PRELIMINARY STATEMENT 4. In bankruptcy terms, this case is a success. To date, the Liquidating The Plan and the Confirmation Order provide the bases for the relief
Debtors have sold or abandoned all their assets, confirmed their chapter 11 plan, resolved millions of dollars in claims and have made distributions to general unsecured creditors of up to
53 cents on the dollar depending on the estate. Today, through the diligent efforts of the Plan
Representative and the Supervisory Board, the Liquidating Debtors are in the perhaps unprecedented position of asking the Court to approve a post-confirmation transaction that will enable them to pay all of their allowed general unsecured claims in full-100 cents on the dollarwith some post-confirmation interest. After the transaction closes and the proceeds are distributed to creditors, these cases will be, by and large, fully administered and ready to close. Because the Plan did not contemplate and the Liquidating Debtors could never have foreseen the possibility of a surplus so large that it would enable full payment of allowed claims of unsecured creditors (not to mention the payment of some post-confirmation
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interest), the Liquidating Debtors bring this motion, out of an abundance of caution, pursuant to the Courts authority to enter orders to implement the Plan. BACKGROUND A. General 6. On March 9, 2009 (the "Petition Date"), the Liquidating Debtors and
various affiliated companies (together with the Liquidating Debtors, the "Debtors") commenced these cases by filing voluntary petitions for relief under chapter lithe Bankruptcy Code. No trustee or examiner was appointed, and the Debtors operated their businesses as debtors in possession during their chapter ii cases which were jointly administered for procedural purposes only. 7. Prior to the sale or abandonment of substantially all of their oil production
assets, the Debtors were a group of independent energy companies engaged in the acquisition, development and exploitation of oil and gas properties in the western United States. 8. As of the Petition Date, debtor Pacific Energy Resources Ltd. ("PERL")
owned 100% of the membership interests in debtor Pacific Energy Alaska Holdings, LLC ("PEAH"), and PEAH owned 100% of the membership interests in debtor Pacific Energy Alaska Operating LLC ("PEAO"). PEAH also owned 50% of all issued and outstanding shares (the "CIPL Stock") of Cook Inlet Pipe Line Company ("CIPL") which owns an oil pipeline and terminal facility located in Cook Inlet, Alaska.
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B.
The Abandonment of the Trading Bay Assets. 9. Pre-petition, PEAO shared working interests with Union Oil Company of
California ("Union") in certain oil and gas leases with the State of Alaska located in Trading Bay (the "Trading Bay Assets"). The Trading Bay Assets consist of twelve offshore oil and gas leases with the State of Alaska dating from the early 1960s. The leases cover an area located in Cook Inlet, Alaska. Eleven of the leases were unitized into a single unit commonly referred to as the Trading Bay Unit. The remaining lease stands alone and is commonly referred to as the Trading Bay Field. The Trading Bay Unit consists of approximately 17,859 gross developed acres with four offshore platforms and approximately thirty-one producing wells. The Trading Bay Field consists of approximately 3,280 developed acres with one offshore platform and approximately fifteen producing wells. 10. Union was the designated operator of these properties and the majority
owner of the working interests, with a 53.2% stake in Trading Bay. PEAOs working interest was 46.8%. As the operator at Trading Bay, Union allocated a portion of the oil produced and the costs of production to PEAO based upon its working interest in the underlying assets. PEAOs working interest in Trading Bay was a significant cash drain. As of the Petition Date, Union was asserting in excess of $26 million in claims against PEAO relating to unpaid allocated costs. 11. Immediately post-petition, the production costs allocated to PEAO by
Union continued to mount at a rate of approximately $4.5 million per month (even though production had shut down due to volcanic activity in the area). In addition, many of the Trading Bay oil wells were scheduled to be retired over the next five to ten years, and the Debtors
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estimated that the projected cost of decommissioning the production platforms and the wells (as well as other Trading Bay Assets) would exceed $100 million (of which PEAO would be responsible for 46.8%). 12. Perhaps for the foregoing reasons, together with low oil prices and poor
capital market conditions in 2009, the Debtors were unable to attract a buyer for the Trading Bay Assets, despite a concerted marketing effort which included retaining Lazard Frres & Co., LLC as investment bankers for the express purpose of marketing the Debtors assets in Alaska. Lazard communicated the opportunity to numerous prospective buyers, sent out marketing materials, and coordinated the creation of a data-room for buyers to conduct due diligence on the Debtors assets. By June of 2009, no prospective buyer was willing to commit to purchase the Trading Bay Assets. 13. Uncertain that they would be able to sell the Trading Bay Assets and
mindful of the detriment to the estates from the continuing accrual of production costs, capital expenditures and potential decommissioning costs, on June 16, 2009, the Debtors filed their Alternative Motion for an Order Authorizing Abandonment of Interests in Oil and Gas Properties at Trading Bay, Alaska and Rejection ofExecutory Contracts Relating Thereto (the "Trading Bay Abandonment Motion") [Docket No. 455]. On September 2, 2009, the Court entered an order granting the Trading Bay Abandonment Motion [Docket No. 832] pursuant to
For purposes herein, the term "decommissioning" refers to the process of disassembling an oil and gas drilling and processing platform, plugging and abandoning any oil and gas wells, restoring the surface, and removing all equipment or pipelines associated with such platform or wells in a manner consistent with applicable nonbankruptcy law.
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which PEAO abandoned its interests in the Trading Bay Assets and rejected seven related executory contracts, including two operating agreements with Union.
C. The Abandonment of the CLPL Stock.
14.
issued and outstanding shares of the common stock in CIPL. Union owned the other 50% of the issued and outstanding shares of CIPL s common stock. CIPL owns the Cook Inlet pipeline and Drift River terminal, which transports oil from wells located in or near Cook Inlet, Alaska. The pipeline services provided by CIPL were an integral part of PEAOs operations at Trading Bay. 15. When PEAO discontinued its Trading Bay operations and abandoned or
sold all of its working interest in the oil and gas wells, the Debtors no longer required CIPL to provide transportation services. The declining volume of oil transported through the pipeline, the costs associated with repairs and clean-up occasioned by the volcanic eruption of Mt. Redoubt and the significant future decommissioning obligations associated with CIPLs assets resulted in the asset being a detriment to the estates. Accordingly, on April 30, 2010, PEAH filed its Motion for an OrderAuthorizing Abandonment of Cook Inlet Pipe Line Company Stock [Docket No. 1560], which was granted by order entered on May 24, 2010 [Docket No. 1604].
D. Confirmation of the Plan of Liquidation.
16.
On December 15, 2010, the Court confirmed the First Amended Plan of
Liquidation for Pacific Energy Resources Ltd., et al., as Modified (the "Plan"), which went effective on December 23, 2010 (the "Effective Date"). Pursuant to the Plan, all of the cases were dismissed except for those of the Liquidating Debtors. As to each of the Liquidating
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Debtors, the Plan provided for a liquidation of assets, full payment of administrative and priority claims and projected pro-rata distributions to general unsecured creditors as follows: (a) Class 4 (General Unsecured Claims Against PERL): 8.7%-17.7%; (b) Class 5 (General Unsecured Claims against PEAH): 0%, and (c) Class 6 (General Unsecured Claims against PEAO): 04%. Subordinated claims and equity received nothing under the Plan, and all equity interests in the Debtors were extinguished upon confirmation. Gerald A. Tywoniuk was appointed to act as the Plan Representative, under the supervision of a Supervisory Board. Mr. Ryan Bateman is the sole current member of the Supervisory Board.
E. Plan Distributions.
17.
Since the Effective Date, the Liquidating Debtors have paid the following
claims in full: (a) Allowed Administrative Expenses ($1,811,259); (b) Allowed Tax Claims ($71,169); (c) Allowed Class 1-Priority Non-Tax Claims ($0); (d) Class 2-Allowed Miscellaneous Secured Claims ($0), and (e) Class 3-Allowed Senior Lender Claims ($1,352,704). 18. In addition, on or about October 18, 2011, the Plan Representative made
an initial distribution to holders of Allowed General Unsecured Claims as follows: (a) Class 4General Unsecured Claims Against PERL ($6,055,166 or 40.55%); (b) Class 5-General Unsecured Claims Against PEAH ($0 or 0%), and (c) Class 6-General Unsecured Claims Against PEAO ($0 or 0%). A second distribution was made on or about December 20, 2011 to holders of Allowed General Unsecured Claims in Class 4 ($1,807,886 or 12.11%) and Class 6 ($71,308 or 1.97%).
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F.
Claims Related to the Trading Bay Assets. 19. Prior to confirmation of the Plan, numerous parties asserted claims related
to the Trading Bay Assets: a. Union claimed that PEAO was liable to it for more than $50
million in unreimbursed production costs related to the Trading Bay Assets, which it asserted were secured by a first priority lien on PEAOs working interests and the proceeds of the oil and gas production thereof. It also sought payment, as an expense of administration, of approximately $21.7 million in post-petition operating costs and $200 million for PEAOs alleged share of projected future costs of abandonment and remediation. b. Silver Point Capital, L.P. ("Silver Point"), as administrative agent
for PEAOs secured lenders, asserted claims against PEAO, which it alleged were secured by, among other things, the proceeds of production related to the Trading Bay Assets, as well as PEAIIs fifty-percent interest in the Cook Inlet Pipe Line Company.
C.
and decommissioning costs of approximately $40 million (Claim 449). d. CIPL asserted claims against PEAH totaling $21.1 million for
rejection damages related to the Cook Inlet Funding Agreement (Claim 489). 20. All of the claims against the Estates related to the Trading Bay Assets
were resolved in the Plan as follows: a. Union received, among other things, certain Lift Proceeds, Tax
Credits, a $100,000.00 cash payment on account of its allowed administrative claim, a Class 5
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General Unsecured Claim for $21.1 million claim against PEAH (for which it would receive no distribution) and a release of the Estates claims against it. In turn, Union waived its right to any further distribution from the Debtors Estates under the Plan. b. The State of Alaska was permitted to retain a $2.86 million royalty
overpayment to apply to PEAOs abandonment, decommissioning and other obligations and received certain allowed administrative claims and a Class 6 General Unsecured Claim for $40 million (Claim 449 as amended by Claim 518) against PEAO (the "Alaska Claim")
C.
Claim for $21.1 million (Claim 489) against PEAl-I (the "CIPL Claim") d. the Trading Bay Assets.
G. The Ongoing Obligations With Respect to the Trading Bay Assets.
21.
Even though the Trading Bay Assets and the CIPL Stock (collectively, the
"Abandoned Assets") had been abandoned, in connection with the settlement of the claims described above, the Plan imposes obligations on both the Debtors and the non-estate Debtors to cooperate with Union and the State of Alaska to formalize their disposition. Specifically, the Plan provides, "The Debtors and the non-estate Debtors shall reasonably cooperate in assisting the State in the administration of the assets located in Alaska that have been abandoned by the Debtors including by way of example, by delivering documents necessary to formalize the legal surrender or transfer and assignment of the debtors oil and gas leases within the State." Plan, Article VI(I)(12), at 49 (emphasis added). With respect to Union, the Plan further provides,
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"PEAO shall execute new mortgages, fixture filings or other similar security agreements and documents with respect to the Trading Bay Unit and Trading Bay Field as Union may reasonably request." Plan, Article VI(I)(7), at 47. 22. To that end, for the last seven months, the Plan Representative and the
Supervisory Board have been in extensive discussions and negotiations with Hilcorp Alaska, LLP ("HAK"), Unions successor, to effectuate the assignment of PEAO s abandoned oil and gas leases in Alaska to HAK. 4 During the course of the negotiations with HAK, and for numerous months prior thereto, several other parties expressed an interest in acquiring PEAOs Trading Bay Assets. As part of responding to these expressions of interest, the Plan Representative or Supervisory Board provided diligence information, participated in meetings, solicited offers, obtained legal advice and assistance and otherwise worked to create value for the liquidating estates by sourcing alternatives to a Union foreclosure, reassignment of the leases to the State of Alaska or a HAK transaction. During this time HAK also brought suit against PEAO in the Superior Court for the State of Alaska, Third Judicial District at Anchorage (Hilcorp Alaska, LLC v. Pacific Energy Alaska Operating LLC, Case No. 3AN-12-07653 CI) (the
"Hilcorp Litigation") to foreclose on liens it holds against certain of the Trading Bay Assets for unpaid production costs. In the end, the Plan Representative and Supervisory Board, after considering legal advice and negotiating heavily with HAK, concluded that they could obtain the highest value by proceeding with an assignment of the Trading Bay Assets to HAK.
"On or about December 31, 2011, HAK closed on its acquisition from Union of all Unions assets in the Cook Inlet. 10
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23.
As a result of the negotiations, PEAO and HAK have entered into the
Letter Agreement dated September 13, 2012 (the "PEAO Agreement") pursuant to which PEAO will assign to HAK all of its right, title and interest in and to the Trading Bay Assets (the "Trading Bay Assignment") and for which HAK will pay PEAO $6.8 million. In addition, HAK will (i) cause the State of Alaska to release the Alaska Claim, (ii) cause CIPL to release the CIPL Claim, (iii) dismiss the Hilcorp Litigation upon closing, and (iv) expand its current financial assurances agreement with the Alaska Department of Natural Resources to incorporate Hilcorps agreement to assume responsibility for PEAOs share of future decommissioning obligations at Trading Bay. 5 24. Because the transportation and pipeline services provided by CIPL are an
integral part of the Trading Bay operations, as a part of the transaction, PEAH will assign its right, title and interest in and to the CIPL Stock to HAK, for which HAK will pay PEAH a fee of $50,000. In addition, flAK will cause CIPL to release the CIPL Claim. The assignment of the CIPL Stock (the "CIPL Assignment" and, collectively with the Trading Bay Assignment, the "Assignments") will be effected pursuant to the Letter Agreement dated as of September 13, 2012 between PEAH and FLAK (the "PEAH Agreement"). 6 25. The fact that the State of Alaska is willing to waive its claim is an
indication of its support for the assignment to flAK. The State of Alaskas Department of Natural Resources ("DNR") has been kept informed by PEAO as to the status of the discussions with flAK and certain other parties. PEAO understands that the State of Alaska has been
A copy of the PEAO Agreement is attached as Exhibit A.
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particularly concerned that PEAO assign its interests to a credit-worthy party, one that is a proven operator, both of which criteria HAK meets. HAK was approved by the State of Alaska to operate the interest it acquired from Union, and provided the necessary financial assurances to the State of Alaska in order to secure the lease transfers from Union. Liquidated Debtors understand that HAK has already reached an agreement in principal with the DNR in order to approve transfer of the Trading Bay assets from PEAO to HAK, and HAK has indicated that it has already performed its due diligence of the Trading Bay assets, and subject to other terms and conditions of the PEAO Agreement, stands ready to close on the transaction pending final approval from the DNR and this Court. As to the CIPL Stock, the Regulatory Commission of Alaska has already approved the transfer of Unions fifty percent interest in CIPL to HAK, and the Debtors expect that it will also approve the transfer of its CIPL Stock to HAK as well. RELIEF REQUESTED 26. By this Motion, the Liquidating Debtors move this Court for entry of an
order approving the Trading Bay Assignment and the CIPL Assignment and the distribution of the proceeds as outlined below. BASIS FOR RELIEF A. The Plan Authorizes the Assignment. 27. Notwithstanding the abandonment of the Trading Bay Assets and the
CIPL Stock, the Plan authorizes the assignments to flAK. Upon abandonment abandoned property is no longer part of the bankruptcy estate and is treated as if administration of the asset never occurred. 4 NORTON BANKRUPTCY LAW AND PRACTICE at 74:2 (3d ed. 2008).
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Abandonment is retroactive to the petition date and constitutes a divestiture of the estates interests in the property to the party with a possessory interest in it. See In re Guterl Special Steel Corp., 316 B.R. 843, 861 (Bankr. W.D. Pa. 2004) (abandoned property reverts nunc pro tune to the debtor or the party with possessory right to the property as of the petition date). 28. As a result of the abandonment, the Trading Bay Assets were removed
from PEAOs bankruptcy estate and reverted back to PEAO (all of whose stock was owned by PEAR) and the CIPL Stock reverted back to PEAH (all of whose stock was owned by PERL). As the Trading Bay Assets and the CIPL Stock were no longer property of the estates upon confirmation, they did not revest in PEAO or PEAR, respectively as Liquidating Debtors. Therefore, the proceeds of the assignment of the Trading Bay Assets belong to PEAO, as debtor, and not to PEAO as Liquidating Debtor, and the proceeds of the CIPL Stock belong to PEAH, as debtor, not to PEAH, the Liquidating Debtor. 29. As was noted above, however, notwithstanding the abandonment of the
Trading Bay Assets, the Debtors and the non-estate Debtors (i.e., PEAO and PEAH as debtors) have obligations under the Plan to the State of Alaska to assist in the "administration of assets located in Alaska that have been abandoned by the Debtors including, by way of example, by delivering documents necessary to formalize the legal surrender or transfer and assignment of the Debtors oil and gas leases with Alaska." Plan, Article VI(I)(12), at 49. Similarly, the Plan imposes a duty on PEAO to "execute new mortgages, fixture filings or other similar security agreement and documents with respect to the Trading Bay Unit and Trading Bay Field as Union may reasonably request." Plan, Article VI(I)(8), at 47. Pursuant to the Motion, PEAO and PEAR
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are simply effectuating the transfers to Unions successor (flAK) that are contemplated by the Plan to discharge PEAOs obligations to the State of Alaska, which is facilitating the transaction by agreeing to waive its claim against PEAO. 7 B. The Proposed Distribution of the Proceeds of the Assignments. 30. As was noted above, the proceeds of the Assignments belong not to PEAO
and PEAH as Liquidating Debtors, but rather to PEAO and PEAH as debtors. As such, they are not governed by the terms of the Plan. Nor does the Plan address the disposition of a payment that might be received by the Liquidating Debtors on account of abandoned assets. Nonetheless, as the Plan requires the Liquidating Debtors to cooperate with the State of Alaska to facilitate the transfer of their Alaska oil & gas interests and the consideration to be paid by HAK is being received in connection with those transactions, the Liquidating Debtors believe it is appropriate to distribute the funds to creditors of the Liquidating Debtors estates. Specifically, after the costs of sale and certain expenses of administration, the Liquidating Debtors propose to distribute the net proceeds (the "Net Proceeds") first to pay the principal amount outstanding to Holders of Allowed General Unsecured Claims and then to the payment of some post Effective Date interest at 3.25% (the prime rate at confirmation) in the following order: a. Class 6 (General Unsecured Claims against PEAO). As the
Trading Bay Assets were owned by PEAO and were abandoned to PEAO, it is appropriate to pay
The Plan Representative is also empowered to enter into the Assignments as contemplated by Article VI(I) of the Plan because he has, among others, "the power, subject to the authority of the Supervisory Board, to act as specifically authorized by any other provision of the Plan Plan, Article VI(F), at 41. The Plan also provides, "In managing and administering the Liquidating Debtors, the Plan Representative shall have full power and authority to execute the provisions of this Plan. . . and take other action in the name of and on behalf of the Liquidating Debtors, to the same extent as if the Plan Representative were the sole director, shareholder, officer, manager or member of the Liquidating Debtors under applicable nonbankruptcy law." Plan, Article VI(E), at 38-39.
......
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PEAOs Class 6 General Unsecured Creditors in full with interest first. As the Alaska Claim must be withdrawn and released as a condition to the Trading Bay Assignment, however, no distribution will be made to the State of Alaska on account of the Alaska Claim. b. Class 5 (General Unsecured Claims against PEAR). Before the
Petition Date, PEAR owned all of the membership interests in PEAO. Therefore, prior to the cancellation of the membership interests pursuant to the Plan, a surplus in the PEAO estate after full payment of its creditors would have been upstreamed to PEAH on account of its equity interest, and those funds would have been available to pay PEAHs creditors. 8 Therefore, it is appropriate to pay Class 5 General Unsecured Creditors second. CIPL, however, is the only Class 5 creditor. As HAK must cause CIPL to release the CIPL Claim as a condition to closing, no distributions will be made to any Class 5 creditors as there will be none.
C.
Petition Date, PERL owned all of the membership interests in PEAH. Therefore, prior to the cancellation of the membership interests pursuant to the Plan, any surplus remaining after full payment of its creditors would have been upstreamed to PERL on account of its equity interest in PEAR and those funds would have been available for the payment of claims against PERL. Therefore, it is appropriate to pay Class 4 General Unsecured Creditors in full with interest (as permitted) third. 9
Pursuant to the Termination Agreement and Release of Interests in Stock dated as of April 17, 2012, HAK caused Silver Point, as Administrative Agent on behalf of certain of the Debtors secured lenders, to waive the lenders interests in the CIPL Stock. The specific proposed distribution of the proceeds is disclosed on Exhibit C.
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31.
While the Plan does not provide for post Effective Date interest on general
unsecured claims, that is because, at the time, it was completely unimaginable that the Liquidating Debtors would ever be able to pay general unsecured claims in full, much less provide a return to equity (at least at the PEAO and PEAH levels). 10 In the interest of fairness, however, the Liquidating Debtors intend to pay post-Effective Date interest (to the extent there are sufficient funds to do so) to Holders of Allowed Class 4 (though not as to the Alaska Claim) and 6 Claims at a rate of 3.25%." 32. As is disclosed on Exhibit C, the Liquidating Debtors intend to pay, from
the gross sale proceeds, a bonus of $75,000.00 to Mr. Tywoniuk and $225,000.00 to Mr. Bateman, without whose efforts General Unsecured Creditors in these cases would be getting between 2 cents on the dollar (PEAO) and 53 cents on the dollar (PERL), instead of 100 cents plus interest. While the Liquidating Debtor may have had an obligation to execute certain documents to facilitate the transfers of the Trading Bay Assets, they had no obligation to conduct months of negotiations or develop alternatives in an attempt to monetize those transfers for the benefit of creditors, where the Plan assumed they had no value and specifically declined to impose such an obligation. Specifically, the Plan provides, "Notwithstanding the foregoing,
Specifically, the Plan states, "Nothing in the Plan or the Disclosure Statement shall be deemed to entitled the Holder of a Claim to receive postpetition interest on account of such Claim." Plan, Article V (E), at 35. In the context of an unsecured creditor cramdown, courts have generally held that the appropriate rate of interest is an established risk-free rate, such as the prime rate, at the time of confirmation plus a risk factor to reflect the risk of nonpayment. See In re Westwood Plaza Apartments, 255 B.R. 194,197 (Bankr. E.D. Tex. 2000) (applying the prime rate (6% at the time of plan confirmation) and adding a risk factor to compensate for the risk of nonpayment of 2-2.5%); In re Byrd Foods, Inc., 253 B.R. 196, 204 (Bankr. E.D. Va. 2000) (taking the average of three risk-free rates (the Treasury Note rate, the Inflation Index Treasury rate and the Farm Credit Financial Assistance Corp rate) and adjusting upward 3% for risk of nonpayment). When the Plan was confirmed on December 15, 2010, the prime rate was 3.25%. As interest is being paid retroactively and unexpectedly, there is no risk of nonpayment, and the Liquidating Debtors intend to simply pay interest at the prime rate without enhancement.
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except as otherwise provided in the Plan, the Plan Representative shall not have any responsibility to take any action with respect to assets or property abandoned by the Estates or any assets of property other than the Distributable Assets and property of the Estates vested in the Liquidating Debtors under this Plan, and the Plan Representative shall not be liable as a result of any action taken in accordance with the provisions of this Plan." Plan, Article VI(E), at
33.
The Plan does not specifically speak to the payment of bonuses, so, out of
an abundance of caution, the Liquidating Debtors seek approval for the proposed bonuses in connection with this Motion. With respect to the Plan Representative, the Plan merely requires that the compensation for the initial Plan Representative be disclosed prior to the confirmation hearing. Plan, Article V(E), at 39. With respect to the members of the Supervisory Board, the Plan states, "Members of the Supervisory Board shall not be compensated for their service for the Debtors, aside from reimbursement of reasonable expenses." Id. at 40. 34. Given that Mr. Tywoniuks and Mr. Batemans efforts went far beyond
what was either expected or required of them under the Plan and will result in payment in full to holders of Allowed Class 4 and 6 General Unsecured Claimswith some post Effective Date interestthe Liquidating Debtors submit that the payment of the bonuses is appropriate. Furthermore, as was noted above, as a result of the abandonments, the proceeds of the Assignments are not property of the Liquidating Debtors and are not strictly subject to any restrictions or limitations on compensation that might be set forth in the Plan.
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35.
The Liquidating Debtors submit to the Court that the proposed allocation
of the Net Proceeds is reasonable for the reasons set forth herein. See In re F.A. Potts & Co., Inc., 23 B.R. 575, 578-79 (Bankr. E.D. Pa. 1982) (approving allocation of proceeds from asset sale based on debtor representatives business judgment). NOTICE 36. The Liquidating Debtors will serve copies of this Motion on (a) the Office
of the United States Trustee; (b) parties requesting notice pursuant to Bankruptcy Rule 2002; (c) all creditors listed on the master creditor matrix, and (d) all former interest holders in PERL who held interests as of the record date established for noticing such interest holders in connection with the service of the Plan and Disclosure Statement. 12 The Liquidating Debtors submit that such notice is sufficient and that no further notice is necessary. NO PRIOR REQUEST 37. No prior application for the relief sought herein has been duly made by the
Because the service list was so large (nearly 9,000 parties), the copies of the Motion that were served on parties in interest other than the core service list did not contain copies of Exhibits A, B or D. However, the service copies of the Motion and the Notice of the Motion advised parties in interest that they can obtain copies of Exhibits A, B and D by making a request, in writing, to counsel for the Liquidating Debtors at the address listed in the signature block to the Motion.
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CONCLUSION WHEREFORE, the Liquidating Debtors respectfully request that the Court enter an order approving this Motion in its entirety and granting such other relief as the Court deems just and proper! 3 Dated: October 5, 2012 PACHULSKI STANG ZIEHL & JONES LLP /s/ James E. ONeill Ira D. Kharasch (CA Bar No. 109084) Maxim B. Litvak (CA Bar No. 215852) James E. ONeill (Bar No. 4042) 919 North Market Street, 17th Floor Wilmington, DE 19801 Telephone: (302) 652-4100 Facsimile: (302) 652-4400 Email: ikharaschpszjlaw.com joneill@pszjlaw.com Counsel for the Liquidating Debtors
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NOTICE OF LIQUIDATING DEBTORS MOTION FOR ORDER APPROVING ASSIGNMENT OF ASSETS TO HILCORP ALASKA, LLC AND DISTRIBUTION OF PROCEEDS THEREOF To: (a) the Office of the United States Trustee; (b) parties requesting notice pursuant to Bankruptcy Rule 2002; (c) all creditors listed on the master creditor matrix, and (d) former interest holders in Pacific Energy Resources Ltd. Pacific Energy Resources Ltd., Pacific Energy Alaska Operating LLC, and Pacific Energy Alaska Holdings, LLC (the "Liquidating Debtors") have filed the Liquidating Debtors Motion for Order Approving Assignment of Assets to Hilcorp Alaska, LLC and Distribution of Proceeds Thereof (the "Motion") with the United States Bankruptcy Court for the District of Delaware, 824 North Market Street, Wilmington, Delaware 19801 (the "Bankruptcy Court") The Motion seeks an order approving: (i) the transfer of the certain assets from Pacific Energy Alaska Operating LLC ("PEAO") to Hilcorp Alaska, LLC ("HAK") pursuant to the Letter Agreement dated September 13, 2012 between PEAO and HAK (the "PEAO Agreement") and (ii) the transfer of certain assets from debtor Pacific Energy Alaska Holdings, LLC ("PEAH") to HAK pursuant to the Letter Agreement dated September 13, 2012 between PEAH and HAK (the "PEAH Agreement") (collectively, the PEAO Agreement and the PEAH Agreement are, the
The Liquidating Debtors (and the last four digits of each of their federal tax identification numbers) are: Pacific Energy Resources Ltd. (3442); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available), and Pacific Energy Alaska Operating LLC (7021).
DOCS_LA:259008. I 68773-003
"Agreements"). The Motion also seeks approval of the proposed distribution of the proceeds of the assignments as is set forth on Exhibit C to the Motion. Any response or objection to the Motion must be in writing and filed with the Bankruptcy Court on or before October 26, 2012. You must also serve a copy of the response or objection so that it is received not later than 4:00 p.m., October 26, 2012, by counsel to the Liquidating Debtors: (i) Pachulski Stang Ziehl & Jones LLP, 10100 Santa Monica Blvd., 13th Floor, Los Angeles, California 90067, Attn: Ira D. Kharasch (email: ikharaschpszj law. com ), and (ii) Pachuiski Stang Ziehl & Jones LLP, 919 N. Market St., 17th Floor, Wilmington, Delaware 19801, Attn: James A. ONeill (email: joneillpszj law. com ). IF YOU FAIL TO RESPOND IN ACCORDANCE WITH THIS NOTICE, THE BANKRUPTCY COURT MAY GRANT THE RELIEF REQUESTED BY THE MOTION WITHOUT FURTHER NOTICE OR HEARING. (Remainder of Page Intentionally Blank)
DOCS_LA:259008. I 68773-003
IF A TIMELY RESPONSE OR OBJECTION IS RECEIVED, A HEARING ON THE MOTION WILL BE HELD ON NOVEMBER 6, 2012, AT 10:00 A.M. (PREVAILING EASTERN TIME) BEFORE THE HONORABLE KEVIN J. CAREY, UNITED STATES BANKRUPTCY JUDGE, 824 NORTH MARKET STREET, 5TH FLOOR, COURTROOM 5, WILMINGTON, DELAWARE 19801. Dated: October 5, 2012 PACHULSKI STANG ZIEHL & JONES LLP /s/ James E. ONeill Ira D. Kharasch (CA Bar No. 109084) Maxim B. Litvak (CA Bar No. 215852) James E. O"Neill (Bar No. 4042) 919 North Market Street, 17th Floor Wilmington, DE 19801 Telephone: (302) 652-4100 Facsimile: (302) 652-4400 ikharaschpszjlaw.com Email: joneill@pszjlaw.com Counsel for the Liquidating Debtors
DOCS_LA:259008. I 68773-003
Exhibit A
LPEAO Agreement
DOCS_LA:259002.1 68773-003
I I
September 13, 2012 Pacific Energy Alaska Operating LLC ill West Ocean Boulevard, Suite 1240 Long Beach, CA 90802 Attention: Gerald A. Tywoniuk Email: gtywoniuk@pacenergy.com
3800 Centerpoint Drive Suite 100 Anchorage AK 99503 Phone: 907/777-8300 Fax: 907/777-8301
RE: Letter Agreement by and between Pacific Energy Alaska Operating LLC, a Delaware limited liability company ("PEAO"), and Hilcorp Alaska, LLC, a Delaware limited liability company ("HAK"). Gentlemen: This letter agreement (this "Agreement") will confirm the understanding and agreement between PEAO and HAK (collectively, the "Parties" and each, a "Party") as follows: 1. Identification of Assets and Description of Relevant Circumstances. A. Effective as of September 2, 2009, and as ordered by the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") (Case No. 09-10785, Dkt No. 832), the bankruptcy estate of PEAO abandoned all of its right, title and interest in and to the oil and gas assets and properties described on Exhibit A to this Agreement, together with all rights incidental or appurtenant thereto (the "Assets") pursuant to section 554 of title 11 of the United States Code. Pursuant to the confirmed and effective First Amended Chapter 11 Plan of Liquidation for Pacific Energy Resources Ltd., et al., as Modified (the "Plan"), Gerald A. Tywoniuk was appointed the plan representative (the Representative"). Pursuant to the Plan and subject to the approval of the Bankruptcy Court, the Plan Representative is authorized to cause PEAO to assign to HAK all of PEAOs right, title and interest in and to the Assets. Pursuant to and subject to the terms and conditions of this Agreement, including approval of the Bankruptcy Court or the Supervisory Board (as defined in the Plan), PEAO desires to assign, and HAK desires to accept assignment of, all of PEAOs right, title and interest in and to the Assets, whether such right, title and interest is held by PEAO as a debtor, debtor-in-possession or Liquidating Debtor
B.
C.
(as defined in the Plan). Until this Agreement is executed by PEAO, neither the delivery of this Agreement by HAK to PEAO nor the contents of this Agreement shall create any rights or obligations for PEAO or HAK. Assignment. Subject to the terms and conditions of this Agreement and in consideration 2. for HAKs payment to PEAO of $6,800,000.00 (the "Fee"), the covenant by HAK set forth in Section 6 below not to sue PEAO for unpaid joint interest billings or unpaid overriding royalty interests with respect to the Assets, and all other covenants and agreements of HAK that are contained herein, PEAO agrees to assign, convey and deliver to HAK, and HAK agrees to accept assignment of and acquire from PEAO at the closing of the transactions contemplated hereby (the "Closing"), all of PEAOs right, title and interest in and to the Assets, whether such right, title and interest is held by PEAO as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). The assignment of the Assets shall be effective as of 7:00 a.m. Alaskan Standard Time on the same date as the Closing (the "Effective Time"). 3. Representations and Warranties.
(a) PEAO and Plan Representative. PEAO and the Plan Representative hereby represent and warrant to HAK as of the Closing Date that (i) subject to satisfaction of the regulatory approvals in Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), PEAO and the Plan Representative have all requisite authority to enter this Agreement and consummate the transactions contemplated hereby, including, but not limited to, all requisite approval by either the Bankruptcy Court or the Supervisory Board, (ii) to the best of PEAO or the Plan Representatives knowledge, there are no pending suits, actions, or other proceedings pending before any federal, state, local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign (a "Governmental Authority") or arbitrator against PEAO or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, and (iii) neither PEAO nor the Plan Representative has sold, assigned, pledged, transferred, or hypothecated any of the Assets or any of its interests therein, or signed any power of attorney or other authorization related to the Assets (except as to HAK or its predecessor in interest) which is now outstanding and in force or otherwise disposed of any of its right, title and interest in and to the Assets, except the abandonment of the Assets by PEAOs bankruptcy estate as referenced in Section 1(A) above. (b) HAK. HAK represents and warrants to PEAO as of the Closing Date that (i) subject to satisfaction of the regulatory approvals in Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), HAK has all requisite authority to enter into this Agreement and consummate the transactions contemplated hereby and (ii) to the best of flAKs knowledge, there are no pending suits, actions, or other proceedings pending before any Governmental Authority or arbitrator, or threatened against HAK or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
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4.
Conditions to Closing. (a) Reciprocal Closing Conditions. The obligation of each Party to consummate the transactions contemplated hereby is subject to approval by either the Bankruptcy Court or the Supervisory Board, and at the option of such Party, to the satisfaction on or prior to the Closing Date of all of the following conditions: (i) the representations and warranties of the other Party contained in this Agreement shall have been true and correct as of the Closing Date, (ii) the covenants and agreements of the other Party to be performed on or before the Closing Date in accordance with this Agreement shall have been duly performed in all material respects, (iii) the other Party shall have executed and delivered all documents and instruments required to be delivered by the other Party pursuant to Section 5, and (iv) there shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any such court or Governmental Authority for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any such Governmental Authority or any other third party indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby. HAK-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of HAK to consummate the transactions contemplated hereby is subject, at the option of HAK, to the following: (i) HAKs receipt, prior to the Closing Date, of all consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all courts of competent jurisdiction and all Governmental Authorities (including, the Alaska Department of Natural Resources (the "DNR")). Upon satisfaction of such condition, HAK shall provide prompt written notice to PEAO of such event; and (ii) PEAOs receipt, prior to the Closing date, of all consents, approvals, orders or authorizations of the Bankruptcy Court with respect to the transactions contemplated herein. In connection therewith, PEAO shall (x) within ten (10) days after the date hereof, make the filings or pleadings with the Bankruptcy Court required of them seeking such approval or authorization (y) comply, at the earliest practicable date, with any request for additional information or material requested by them from the Bankruptcy Court and (z) use commercially reasonable efforts to obtain such approvals at the earliest practicable date prior to the Closing Date. The order from the Bankruptcy Court approving the transaction shall be in a form and substance satisfactory to HAK, and any such order shall be a final order, which order is in effect and not subject to stay (the "Bankruptcy Order"). Upon receipt of the Bankruptcy Order, PEAO shall provide prompt written notice to HAK of such event.
(b)
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(c)
PEAO-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of PEAO to consummate the transactions contemplated hereby is subject, at the option of PEAO, to the following: (i) flAK shall cause the State of Alaska to release the $40 million claim of the State of Alaska against PEAO (as stipulated in the bankruptcy proceedings) which is specifically related or allocated to both the Assets and the Spun Platform; and HAK shall cause Cook Inlet Pipeline Company ("CIPL") to release the (ii) $21 million claim of CIPL against PEA}1 (as stipulated in the bankruptcy proceedings). Closing and Closing Deliverables.
(a) Assuming satisfaction or waiver of the conditions to closing set forth in Section 4, the Closing shall take place 5 Business Days after the later to occur of: (i) HAKs delivery to PBAO of the written notice contemplated in Section 4(b)(i) and (ii) PEAOs delivery to flAK of the written notice contemplated in Section 4(b)(ii) (the "Closing Date"). The Closing shall occur at 11:00 A.M. Alaskan Standard Time on the Closing Date at the office of flAK or at such other time and place (or by such other electronic means) as the Parties agree in writing. At the Closing: (i) HAK shall pay PEAO the Fee via wire transfer of immediately available funds to the account(s) designated in writing by PEAO; PEAO shall convey all of its right, title and interest in and to the Assets to (ii) HAK by an assignment and bill of sale duly executed by PEAO and HAK in substantially the form attached hereto as Exhibit B (the "Conveyance"), in sufficient duplicate originals to allow recording in all appropriate jurisdictions; (iii) flAK and PEAO shall execute a DNR-approved assignment form substantially in the form attached hereto as Exhibit C (the "DNR Assignment") and submit such executed DNR Assignment to the DNR for the DNR s final approval documentation; (iv) PEAO shall execute and deliver an executed Form W-9 and an executed certificate of non-foreign status as required in Treasury Regulation 1.14452(b)(2); and flAK and PEAO shall each execute and deliver to one another any other (v) documents that are reasonably required in order to effect the consummation of the transactions contemplated hereby. (c) Within five (5) business days after the Closing, HAK shall file a motion to dismiss with prejudice (in a form acceptable to PEAO) of the following proceeding: Hilcorp Alaska, LLC v. Pacific Energy Alaska Operating, LLC; Case No. 3AN-12-07653 CI; In the Superior Court for the State of Alaska, Third Judicial District at Anchorage.
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Additional Bankruptcy-Related Provisions; Miscellaneous. HAK shall have no right to a 6. distribution from PEAOs estate under the Plan on account of any claim in favor of HAK (or any claim assigned to HAK). Furthermore, each of HAK and PEAO covenants not to sue the other Party based on any claim arising under or related to any agreement under which 1-IAK (or any predecessor in interest to HAK) operates the Assets, including, without limitation, any such claim that is related to unpaid joint interest billings under any such agreement or unpaid overriding royalty interests with respect to the Assets. Nothing herein shall waive, limit, impair, or restrict any right or defense of flAK or any affiliate thereof, to protect, preserve, assert and enforce its rights, remedies, defenses and interests against any and all persons and entities other than PEAO. Finally, HAK agrees to release PEAO from any claims by SPCP Group Alaska LLC, SPCP Group III Alaska LLC or MLQ, LLC regarding the payment of any proceeds related to the overriding royalty interests owned by such entities in and to the Assets that arose prior to the Effective Time. Termination. Either Party may terminate this Agreement at any time prior to the Closing 7. by delivering a termination notice to the other Party if (a) the Closing has not occurred as of December 15, 2012, unless an extension is mutually agreed to in writing by the Parties, (b) the representations or warranties of the other Party are not true and correct as of the Closing Date, or (c) the other Party has not performed its covenants in all material respects to the extent required prior to the Closing Date pursuant to this Agreement. Without limitation of the foregoing, at any time between the date first-written above and the Closing, HAK shall have the right to terminate this Agreement by delivering a termination notice to PEAO if; in connection with any due diligence it may conduct or otherwise, flAK becomes aware of (i) any matter which would cause a material Asset to be unacceptable to HAK in its reasonable judgment or (ii) any cost, obligation or liability associated with any of the Assets that is unacceptable to flAK in its reasonable judgment. Notwithstanding the foregoing, no Party shall be entitled to deliver such a termination notice if the Closing has failed to occur as a result of the such Partys negligent or willful failure to perform or observe in any material respect such Partys covenants and agreements hereunder. Upon the delivery of any such termination notice, this Agreement shall be deemed to be void and of no further force and effect, except that the provisions of Sections 8, 912, 13, 15 and 17 shall survive such termination and continue in full force and effect indefinitely. Confidentiality. It is understood and agreed between HAK and PEAO that the 8. terms and existence of this Agreement shall remain confidential by and between flAK and PEAO and shall not, except as expressly permitted herein, be disclosed to any third parties. HAK and PEAO may each disclose the terms and existence of this Agreement (i) to each such Partys respective affiliates stockholders, members, officers, directors, employees, agents, lenders, advisors, representatives, accountants current and prospective investors, partners or transferees, attorneys and consultants (collectively, "Representatives") (ii) in the course of any trial or other administrative or legal proceeding involving a Party or a Partys Representative, or (iii) as required by any applicable securities law or other applicable law, regulation, order (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed) or the rules of any applicable national stock exchange or (iv) to the extent reasonably necessary to obtain any approval of any Governmental Authority of competent jurisdiction, including the DNR and the Bankruptcy Court.
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Notices. All notices, communications and document deliveries (each, a "Notice") 9. required or permitted to be given hereunder shall be in writing and shall be delivered personally, by registered or certified overnight United States mail, return receipt requested or by facsimile transmission or email. Any Notice given in accordance herewith shall be deemed to have been given only when delivered to the party intended to receive it. For purposes of this Agreement, (i) PEAOs contact information for all Notices shall be the contact information first-written above and (ii) HAKs contact information for all Notices shall be as set forth below. HAK and PEAO may change all or any portion of its contact information by giving written notice to the other in a manner that complies with this Section 9. Hilcorp Alaska, LLC 1201 Louisiana, Suite 1400 Houston, Texas 77002 Attn: Jason C. Rebrook, Vice President Phone: (713) 209-2400 Facsimile: (713) 289-2650 Email: irebrookhilcorp.corn Acknowledgments: Counterparts: Time is of the Essence. Each Party acknowledges and 10. agrees that (i) it has read and understood this Agreement, (ii) is able to freely determine whether it is advisable to execute this Agreement (and consummate the transactions contemplated hereby) and (iii) it has either consulted with an attorney regarding the terms and provisions of this Agreement and any other documents executed in connection therewith or has voluntarily elected not to do. Neither this Agreement nor any other documents executed in connection herewith shall be construed against any of the Parties by. reason of the authorship of any provision contained therein. This Agreement may be executed and delivered (including by facsimile or pdf. transmission) by each Party in any number of counterparts, each of which shall be an original instrument, but all of which together shall constitute but one and the same instrument and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party (including by facsimile or pdf. transmission). Time is of the essence to both Parties in the performance of this Agreement and the transactions contemplated hereby. Governing Law. This Agreement shall be governed by and construed and enforced in 11. accordance with the laws of the State of Delaware. The Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") to interpret and enforce the terms of this Agreement. If for any reason the Bankruptcy Court declines to exercise jurisdiction, then the Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States District Court for the District of Delaware. Each Party waives any objection which it may have , pertaining to improper venue or forum non-conveniens to the conduct of any litigation or proceeding in the foregoing courts. Each Party agrees that any and all process directed to it in any such proceeding or litigation may be served upon it outside of the State of Delaware with the same force and effect as if such service had been made within the State of Delaware. EACH OF THE PARTIES HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY LITIGATION, ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT.
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Expenses; Waivers; Severability. Each Party will pay its own expenses and costs 12. incidental to the negotiation and completion of the transaction, including legal fees. Any failure by any Party to comply with any of its obligations, agreements or conditions herein contained may be waived by the Party to whom such compliance is owed by an instrument signed by the Party to whom compliance is owed and expressly identified as a waiver, but not in any other manner. It is the intent of the Parties that the provisions contained in this Agreement shall be severable. Should any provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion. 13. Assignment: Binding Agreement. Neither Party shall assign or otherwise transfer all or any part of this Agreement, nor shall any Party delegate any of its rights or duties hereunder, without the prior written consent of the other Party and any transfer or delegation made without such consent shall be null and void. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns. Subject to the terms set forth herein, the full execution of this Agreement creates a legally binding and enforceable agreement between the Parties regarding the matters set forth herein. Amendment; No Third-Party Beneficiaries; Entire Agreement. This Agreement may be 14. amended or modified only by an agreement in writing signed by PEAO and 1-JAK and expressly identified as an amendment or modification. Nothing in this Agreement shall entitle any Person other than PEAO and HAK to any claim, cause of action, remedy or right of any kind. This Agreement, and the documents to be delivered or executed pursuant to this Agreement, constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understanding or discussions. 15. Limitation on Damages. Notwithstanding anything to the contrary contained herein, none of HAK, PEAO or any of their respective affiliates shall be entitled to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby and each of HAK and PEAO, for itself and on behalf of their respective affiliates, hereby expressly waives any right to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby. 16. Disclaimer. EXCEPT FOR REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, PEAO MAKES NO, AND PEAO EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN THIS OR ANY OTHER INSTRUMENT, AGREEMENT OR CONTRACT DELIVERED HEREUNDER OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREUNDER OR THEREUNDER. 17. Further Assurances. At and after Closing, PEAO and HAK shall each execute, acknowledge and deliver all such further conveyances, notices, assumptions, releases and acquittances, and such other instruments, and shall each take such further actions as may be necessary or appropriate to assure fully to HAK or PEAO (including their successors and assigns) as the case may be, that the transactions described in this Agreement shall be completed
and that all of the Assets intended to be conveyed under the terms of this Agreement are so conveyed, including such Assets that are improperly described herein or inadvertently omitted from this Agreement and/or the assignments or other instruments executed contemporaneously herewith (including the exhibits attached to each). Construction; Interpretation. Capitalized terms defined elsewhere in this Agreement shall 18. have the meanings so given them herein. If any period of days is referenced in this Agreement and such period would expire on a day that is not a Business Day then such period shall instead expire on the first Business Day following such day. Unless otherwise required by the context in which any term appears, the following rules of construction shall apply for all purposes of this Agreement. Unless the context otherwise requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter, the singular shall include the plural, and the plural shall include the singular. The words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation." All references to Sections refer to sections of this Agreement, and all references to Exhibits are to exhibits attached hereto, each of which is incorporated herein for all purposes. Headings, titles and subtitles in any article, section or subsection of this Agreement are included for convenience only and do not affect, and will not be used in, the interpretation of this Agreement. The words "herein," "hereof," "herewith" and "hereunder" and similar terms in this Agreement shall refer to this Agreement as a whole and not to any particular section or subsection of this Agreement. Specific Performance. Without limitation of any other provision in this Agreement, the 19. Parties acknowledge that an award of damages for failure to comply with this Agreement would not be an adequate remedy for the Party attempting to enforce this Agreement, and accordingly the Parties expressly authorize any such Party to bring an action against the other Party for a permanent or temporary injunction, to compel the specific performance or any other equitable remedy by such other Parties of their obligations to comply with such provisions without the necessity of posting bond or other security in connection therewith. This remedy is in addition to any other remedies at law or in equity. 20. Execution by PEAO. If the foregoing correctly sets forth the understanding and agreement between HAK and PEAO, please so indicate by executing and delivering to HAK an executed counterpart of the signature page attached hereto. PEAH Letter Agreement. Contemporaneously with the execution of this Agreement, 21. HAK and Pacific Energy Alaska Holdings, LLC entered into that certain letter agreement of even date herewith (the "PEAR Letter Agreement"). The PEAH Letter Agreement contemplates a Closing on same date as set forth herein, but the parties hereto acknowledge that if the Closing under the PEAH Letter Agreement has not yet occurred but the conditions set forth herein have been satisfied and the parties are ready to proceeding to Closing under this Agreement, the Closing of this Agreement may occur prior to Closing under the PEAH Letter Agreement.
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IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCORP ALASKA, LLC
By: Name: 0(on C.lebrook Title: e President Date: PACIFIC ENERGY ALASKA OPERATING LLC
IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCORP ALASKA, LLC
By: Name:on C. jebrook Title: Vice President Date: PACIFIC ENERGY ALASKA OPERATING LLC
_ CY. -pi
4~
tE ks,
TRADING BAY UNIT AND TRADING BAY FIELD COOK INLET, ALASKA All of Assignors right, title and interest in and to the following, including, but not limited to, any operating rights, royalty, overriding royalty and working interests in said lands: OIL AND GAS LEASES QLS NO. 817104 LEASE No. 17579 LESSOR! GRANTOR STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS EFFECTIVE DATE 211/1962 RECORDING DISTRICT BK/PG ANCHORAGE BK 3441 PG 888 LESSOR tNT % 100.00 ROY INT % 12.50 TOTAL ACRES 2,240.00 WORKING INTEREST LEGAL DESCRIPTION
%
46.8% TRADING BAY UNIT, TRACT 2
As TO A 46.80% WORKING INTEREST IN 2,240.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT I SECTION 4: ALL, 640.00 ACRES; SECTION 9: W1/2, 320.00 ACRES; SECTION 16: NW1/4, 160.00 ACRES; SECTION 17: ALL, 640.00 ACRES; SECTION 20: N1/2, SW1/4, 480.00 ACRES. PERTAINS TO LAND FROM THE SURFACE DOWN TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHTC EQUIVALENT. AS TO A 46.80% WORKING INTEREST IN 2,240.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 4: ALL, 640.00 ACRES; SECTION 9: W1/2, 320.00 ACRES; SECTION 16: NWI/4, 160.00 ACRES; SECTION 17: ALL, 640.00 ACRES; SECTION 20: N 1/2, SWI/4, 480.00 ACRES. PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS, OR 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
Page 1 of 27
LEASE No.
RECORDING DISTRICT
BK/PG
LESSOR INT %
ROY INT %
WORKING INTEREST
LEGAL DESCRIPTION
%
100.00 12.50 VARIES
TRADING BAY UNIT, TRACT
17594
As TO A 46.80000% WORKING INTEREST IN 4,956.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT A SECTION 16: ALL, SECTION 17: 51/2, SECTION 20: ALL, SECTION 21: ALL, SECTION 29: ALL, SECTION 30: ALL, SECTION 31: ALL, SECTION 32: ALL,
640.00 ACRES; NE1/4, 480.00 ACRES; 640.00 ACRES; 640.00 ACRES; 640.00 ACRES; 637.00 ACRES; 639.00 ACRES; 640.00 ACRES; 10,600 FEET, BELOW THE
As TO A 46.80000% WORKING INTEREST IN 2,396.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT I SECTION SECTION SECTION SECTION SECTION
16: W1/2, NEI/4, 480.00 ACRES; 17: S1/2, NEI/4, 480.00 ACRES; 20: W1/2, NE1/4 480.00 ACRES; 30: ALL, 637.00 ACRES; 31: W1/2, 319.00 ACRES;
PERTAINS TO LAND WITHIN THE TRADING BAY UNIT TRACT 3 AND FROM THE SURFACE DOWN TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
AS TO A 50.00000% WORKING INTEREST IN 2,396.00 ACRES, MORE OR LESS, AND AS DESCRIBED AS FOLLOWS: SEGMENT B SECTION SECTION SECTION
16: W1/2, NE114,480.00 AcRE5; 17: S1/2, NEI14, 480.00 ACRES; 20: W1/2, NEI/4, 480.00 ACRES;
Page 2 of 27
QLS NO.
LEASE No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
SECTION 30: ALL, 637.00 ACRES; SECTION 31: W1/2, 319.00 ACRES; PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. 816479
17602
211/1962
100.00
12.50
640.00
46.8%
TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL
OR THE STRATIGRAPHIC EQUIVALENT.
817105
18716
9/1/1962
100.00
12.50
462.50
46.8%
PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. TRADING BAY UNIT, TRACT 9
Page 3 of 27
QLS NO.
LEASE
No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR
tNT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
%
PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD OR ITS STRATIGRAPHIC EQUIVALENT IN THE TRADING BAY UNIT K2 WELL. As TO A 46.80% WORKING INTEREST IN 462.50 ACRES MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT C SECTION 19: N1/2, SEI/4, 462.50 ACRES; PERTAINS TO LAND BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816473
18729
10/1/1962
100.00
12.50
3,085.00
VARIES
TRADING BAY UNIT, TRACT 10 T. 8 N., R. 13W., SEWARD MERIDIAN, ALASKA As TO A 46.80000% WORKING INTEREST IN 3,085.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A SECTION 5: ALL, 640.00 ACRES; SECTION 6: ALL, 600.00 ACRES; SECTION 7: ALL, 602.00 ACRES; SECTION 8: ALL, 640.00 ACRES; SECTION 18: ALL, 603.00 ACRES. PERTAINS TO LAND BELOW 10,600 FEET, BELOW THE GRAYLING GAS SANDS.
As TO A 46.80000% WORKING INTEREST IN 1,365.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 2 SECTION 7: W1/2, SEI/4, 442.00 ACRES; SECTION 8: S112, 320.00 ACRES; SECTION 18: ALL, 603.00 ACRES; PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
Page 4 of 27
QLS
LEASE
NO.
No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL
ACRES
WORKING INTEREST
LEGAL DESCRIPTION
As TO A 50.00% WORKING INTEREST IN 1365.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION SECTION SECTION
7: W112, SEI14, 442.00 ACRES; 8: S1/2, 320.00 ACRES; 18: ALL, 603.00 ACRES;
PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816474
18730
10/1/1962
100.00
12.50
2,880.00
VARIES
AS TO A 46.80000% WORKING INTEREST IN 2,880.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT SECTION SECTION SECTION SECTION SECTION
26: W1/2, 320.00 ACRES; 27: ALL, 640.00 ACRES; 28: ALL, 640.00 ACRES; 33: ALL, 640.00 ACRES; 34: ALL, 640.00 ACRES.
As TO A 46.80000% WORKING INTEREST IN 1,120.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT SECTION SECTION SECTION
26: W112,320.00 ACRES; 27: E1/2, 320.00 ACRES; 34: El /2, SWI!4, 480.00 ACRES;;
PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2
Page 5 of 27
QLS
NO.
LEASE No.
LESSOR!
GRANTOR
EFFECTIVE DATE
RECORDING DISTRICT
LESSOR INT %
ROY
INT
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
BK/PG
WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 50.00000% WORKING INTEREST IN 1,120.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT I3 SECTION 26: W1/2, 320.00 ACRES; SECTION 27: E1/2, 320.00 ACRES; SECTION 34: E1/2, SWI!4, 480.00 ACRES;; PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816475
18731
10/111962
100.00
12.50
3,840.00
VARIES
TRADING BAY UNIT, TRACT 12 T. 9 N., R. 13W., SEWARD MERIDIAN, ALASKA As TO A 46.80000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 1, PORTION WITHIN TRADING BAY UNIT
1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. AS TO A 50.0000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A, PORTION WITHIN TRADING BAY UNIT SECTION 8: S1/2SEI/4, NEI/4SEI14,120 ACRES; SECTION 9: SEI/4SE1/4, W1/2SW1/4, 120 ACRES; SECTION 10: SWI/4NE1/4, SEI/4NW1/4, SW1/4, W1/2 SE1/4, 320 ACRES; PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND Page 6 of 27
QLS NO.
LEASE No.
LESSOR!
GRANTOR
EFFECTIVE DATE
RECORDING DISTRICT
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
BK/PG
%
10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
As TO A 46.80000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT B, PORTION WITHIN TRADING BAY UNIT SECTION 8: S1/2SEI/4, NEI/4SEI/4, 120 ACRES; SECTION 9: SEII4SEII4, W1/2SWI/4, 120 ACRES; SECTION 10: SWI/4NEI/4, SEI/4NW1/4, SWI/4, WII2SEI/4, 320 ACRES; PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. TRADING BAY FIELD T. 9 N., R. 13W., SEWARD MERIDIAN, ALASKA
As TO A 46.80000% WORKING INTEREST IN 3,280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT 1, PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES; SECTION 4: ALL; 640.00 ACRES; SECTION 5: ALL; 640.00 ACRES; SECTION 8: N1/2, SW1I4, NW1I4SE1I4; 520.00 ACRES; SECTiON 9: N1/2, E1I2SWII4, WII2SEII4, NEI/4SEI/4; 520.00 ACRES SECTION 10: N112N112, SWI/4NW1/4, SEI/4NE1/4, E1/2SEI/4; 320.00 ACRES PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
As TO A 50.00000% WORKING INTEREST IN 3,280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
PORTION OF SEGMENT A, PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES;
I-page 7 Of 27
QLS
NO.
LEASE
No.
LESSOR! GRANTOR
EFFECTIVE
DATE
RECORDING
DISTRICT BK/PG
LESSOR
INT %
ROY INT
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
%
SECTION SECTION SECTION ACRES; SECTION
4: ALL; 640.00 ACRES; 5: ALL; 640.00 ACRES; 8: N1/2, SWII/4, NWI/4SEI/4; 520.00
9: N 1/2, E1/2SWI/4, W1/2SE1/4, NE1/4SEI/4; 520.00 ACRES SECTION 10: N1/2N1/2, SW1/4NW1/4, SE1/4NEI/4, E1/2SEI/4; 320.00 ACRES
PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPI-IIC EQUIVALENT.
As TO A 46.80000% WORKING INTEREST IN 3280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT B, PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES; SECTION 4: ALL; 640.00 ACRES; SECTION 5: ALL; 640.00 ACRES; SECTION 8: N112, SWI/4, NW1/4SE114; 520.00 ACRES; SECTION 9: N112, E1/2SWI/4, W1/2SEI/4, NEI/4SEI/4; 520.00 ACRES SECTION 10: 1\11/2141/2, SWI/4NWI/4, SEI/4NEI/4, E1/2SEI/4; 320.00 ACRES PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
817106
18758
9/1/1962
100.00
12.50
480.00
46.8%
As TO A 46.80000% WORKING INTEREST IN 480.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT 3 SECTION 25: E112, 320.00 ACRES; SECTION 36: NEI/4, 160.00 ACRES;
Page 8of27
QLS NO.
LEASE
No.
LESSOR! GRANTOR
EFFECTIVE DATE
RECORDING
DISTRICT
LESSOR INT%
ROY INT%
TOTAL
ACRES
WORKING INTEREST
LEGAL DESCRIPTION
BK/PG
PERTAINS TO LAND FROM THE SURFACE DOWN TO THE TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. As TO A 46.80000% WORKING INTEREST IN 480.00 ACRES, MORE OR LESS, AS DESCRIBED AS FOLLOWS: SEGMENT B SECTION 25: E1/2, 320.00 ACRES; SECTION 36: NEI/4, 160.00 ACRES; PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. 817107 18772 STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS 9/1/1962 ANCHORAGE BK3441 PG 609 100.00 12.50 1,1600.00 46.8% TRADING BAY UNIT, TRACT 14 T. 9 N., R. 13W., SEWARD MERIDIAN, ALASKA As TO A 46.80% WORKING INTEREST IN 1,600 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENTS 2 AND B SECTION 15: ALL, 640.00 ACRES; SECTION 22: ALL, 640.00 ACRES; SECTION 23: W1/2, 320.00 ACRES; PERTAINS TO ALL DEPTHS EXCLUDING THE GRAYLING GAS SANDS 817108 18777 STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS 9/1/1962 ANCHORAGE BK 3441 PG 409 100.00 12.50 796.00 VARIES TRADING BAY UNIT, TRACT 17 T. 9 N., R. 13W., SEWARD MERIDIAN, ALASKA As TO A 46.80000% WORKING INTEREST IN 796.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 2 SECTION 18: SEI/4, 160.00 ACRES; SECTION 19: ALL, 636.00 ACRES; PERTAINS TO ALL LAND FROM THE SURFACE TO THE Page 9 of 27
QLS NO.
LEASE No.
LESSOR / GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
%
TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
As TO A 50.00000% WORKING INTEREST IN 796.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A SECTION 18: SEII4, 160.00 ACRES; SECTION 19: ALL, 636.00 ACRES; PERTAINS TO THE GRAYLING GAS SANDS DEFINED AS THE INTERVAL IN THE TRADING BAY UNIT K-2 WELL BETWEEN THE MEASURED DEPTHS OF 1,780 FEET AND 10,128 FEET OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 46.800000% WORKING INTEREST IN 796.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 18: SE1/4, 160.00 ACRES: SECTION 19: ALL, 636.00 ACRES; PERTAINING TO ALL DEPTHS BELOW THE GRAYLING GAS SANDS OR BELOW 10,125 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. 817109 21068 STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS
7/1/1963
100.00
12.50
160.00
46.8%
TRADING BAY UNIT, TRACT 18 T. 9 R. 14W., SEWARD MERIDIAN, ALASKA As TO A 46.80% WORKING INTEREST IN 160.00 ACRES MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 1 SECTION 24: SEI/4, 160.00 ACRES; PERTAINS TO LAND FROM THE SURFACE TO THE TOP OF THE GRAYLING GAS SANDS ORTOA DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 46.80% WORKING INTEREST IN 160.00
Page 10 of 27
QLS NO.
LEASE No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
SECTION 24: SE1I4, 160.00 ACRES; PERTAINS TO ALL DEPTHS BELOW THE GRAYLING GAS SANDS OR BELOW 10,125 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
Page 11 of 27
TRADING BAY UNIT AND TRADING BAY FIELD RIGHTS OF WAY QLS NO. 793983 LEASE No. 220602 GRANTOR EFFECTIVE DATE 1/1/1994 RECORDING DISTRICT BK/PG ANCHORAGE BK 2574 PG 560 LESSOR INT % 100.00 TOTAL ACRES 12.1 WORKING INTEREST % 100.0% LEGAL DESCRIPTION
A PRIVATE NON-EXCLUSIVE RIGHT-OF-WAY FORA PORTION OF AN AIRCRAFT LANDING STRIP ON STATE LAND FOR YEARLONG USE, RUNNING APPROXIMATELY 1320 FEET IN LENGTH AND EXTENDING APPROXIMATELY 400 FEET IN WIDTH. OCCUPYING 12.1 ACRES. T9N, R14W, SM, AK, SECTION 32 A PARCEL OF LAND DESCRIBED AS FOLLOWS: T9N, RI4W, SM, AK, SECTION 32: COMMENCING AT THE U.S. B. L. M. MONUMENT MARKING THE SECTION CORNER COMMON TO SECTIONS 5 AND 6, ON THE TOWNSHIP LINE OF TOWNSHIP 8 AND 9 NORTH, RANGE 14 WEST, SM, PROCEED SOUTH 89 DEGREES 4158" WEST ALONG THE TOWNSHIP LINE OF TOWNSHIP 8 AND 9 NORTH, RANGE 14 WEST, SM, A DISTANCE OF 1,839.68 FEET TO A COPPERWELD MONUMENT AND THE TRUE POINT OF BEGINNING OF THIS LEGAL DESCRIPTION." THENCE PROCEED ALONG THE TOWNSHIP LINE BETWEEN TB AND 9N, RI4W, SM, N 89 DEGREES 4158" E A DISTANCE OF 145 FEET TO A POINT; THENCE N 01 DEGREES 07 42W A DISTANCE OF 1320 FEET TO A POINT; THENCE S 88 DEGREES 5218" WA DISTANCE OF 400 FEET TO A POINT; THENCE S 01 DEGREES 0742" E A DISTANCE OF 1,314.22 FEET TO A POINT ON THE TOWNSHIP LINE 8 AND 9N, RI4W, SM; THENCE N 89 DEGREES 4158" E A DISTANCE OF 255.04 FEET TO THE "TRUE POINT OF BEGINNING OF THIS LEGAL DESCRIPTION." PURPOSE: MAINTAINING A PORTION OF THE AIRSTRIP
794400
42914
12/31/1967
NONE
100.00
NA
CONTRACTUAL 46.8% WI
WELLS FOR WATER RIGHTS IS LOCATED ON FOLLOWING PROPERTY - FEE PROPERTY: T8N, RI4W, SM, AK SECTION 05: PORTION OF FRACTIONAL NW/4 THIS WATER RIGHTS CERTIFICATION CARRIES NO SURFACE ACREAGE THIS IS A PERMIT TO APPROPRIATE WATER.
794848
NA
1/1/2000
NONE
100.00
6.05
50.0% CONTRACTUAL
T8N, R14W, SM, AK SECTION 6: A PARCEL OF LAND LYING WITHIN THE SE/4 OF SECTION
Page 12 of 27
QLS NO.
LEASE
GRANTOR INC
No.
EFFECTIVE DATE
LESSOR
INT %
TOTAL ACRES
LEGAL DESCRIPTION
06, T8N, RI4W, SM ALASKA AND DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SECTION 06, T8N, RI4W, SM, AS SHOWN ON THAT SURVEY OF STATE LANDS ADL 37596, THENCE N 89 DEGREES 57 58" E, A DISTANCE OF 605 FEET TO A POINT AND BEING THE TRUE POINT OF BEGINNING; THENCE S 04 DEGREES 57 42" E A DISTANCE OF 720.00 FEET; THENCE N 85 DEGREES 0218" E, A DISTANCE OF 400.00 FEET TO A POINT; THENCE N 04 DEGREES 5742" W 685.20 FEET, MORE OR LESS, TO THE S LINE OF THE NE/4 SECTION 06, T8N, RI4W, SM; THENCE S 89 DEGREES 57 58" W ALONG THE S LINE OF NE/4 OF SAID SECTION 06, A DISTANCE OF 401.50 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.CONTAINING 6.05 ACRES, MORE OR LESS. PURPOSE: THE SOUTHERN PORTION OF THE AIRSTRIP ATTBPF
Page 13 of 27
QLS NO.
LEASE
No.
793928
33047
LESSOR INT%
TOTAL
ACRES
LEGAL DESCRIPTION T8N, RI4W; T9N, R13W; AND T9N, RI4W, SM, AK RIGHT-OF-WAY 150 FEET IN WIDTH ON EITHER SIDE OF THE CENTERLINE AND 8.9 MILES IN LENGTH ON TIDE AND SUBMERGED LANDS LYING SEAWARD OF THE MEAN HIGH TIDE LINE IN TRADING BAY LOCATED WITHIN SECTIONS 4 AND 5, TOWNSHIP 8 NORTH, RANGE 14 WEST; SECTIONS 4, 8, 9, 17, 18 AND 19, TOWNSHIP 9 NORTH, RANGE 13 WEST; AND SECTIONS 24, 25, 26, 33, 34 AND 35, TOWNSHIP 9 NORTH, RANGE 14 WEST, SEWARD MERIDIAN, CONTAINING APPROX. 326.5 ACRES. SEE BELOW FOR DETAILED METES AND BOUNDS DESCRIPTION. PURPOSE: MONOPOD PIPELINE TO TBPF METES AND BOUNDS DESCRIPTION: A 300 FOOT SUB-SEA FLOWLINE RIGHT OF WAY LOCATED IN TRADING BAY WITHIN PROTRACTED T8N, RI4W; T9N, RI3W; AND T9N, RI4W; SM WITHIN THE KENAI PENINSULA BOROUGH AND BEING 150 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT A POINT ON THE UNION OIL COMPANY TRADING BAY PLATFORM, ALASKA STATE PLANE COORDINATES, ZONE 4, X218,871, Y=2,523,126; THENCE, BY METES AND BOUNDS COMPUTED FROM ALASKA STATE PLANE COORDINATE SYSTEM, ZONE 4; N. 40 DEGREES 3506" W, FOR A DISTANCE OF 129.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE, S. 49 DEGREES 2454" W., FOR A DISTANCE OF 1,637.86 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 1200.00 FEET, A CENTRAL ANGLE OF 12 DEGREES 55 23", AND AN ARC LENGTH OF 270.66 FEET TO THE POINT OF TANGENCY; THENCE, S. 36 DEGREES 2931" W., FOR A DISTANCE OF 181.91 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 1200.00 FEET, A CENTRAL ANGLE OF 12 DEGREES 56 01", AND AN ARC LENGTH OF 271.17 FEET TO THE POINT OF TANGENCY; THENCE, S.49 DEGREES 2622"W., FOR A DISTANCE OF 4,354.96 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 1 DEGREE 4457", AND AN ARC LENGTH OF 152.64 FEET, TO THE POINT OF TANGENCY; THENCE, S. 51 DEGREES 11 19W., FORA DISTANCE OF 646.89 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF
100.00
326.50
Page 14 of 27
QLS
NO.
LEASE
No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL
ACRES
WORKING INTEREST %
LEGAL DESCRIPTION
5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 4306", AND AN ARC LENGTH OF 324.49 FEET, TO THE POINT OF TANGENCY; THENCE, S. 47 DEGREES 2813" W., FOR A DISTANCE OF 480.37 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 5651", AND AN ARC LENGTH OF 519.02 FEET TO A POINT OF TANGENCY; THENCE, S. 53 DEGREES 2504" W., FOR A DISTANCE OF 309.28 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 13 19", AND AN ARC LENGTH OF 455.70 FEET, TO THE POINT OF TANGENCY; THENCE, S. 48 DEGREES 1145" W., FOR A DISTANCE OF 1,792.55 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF I DEGREE 39 18", AND AN ARC LENGTH OF 144.43 FEET, TO THE POINT OF TANGENCY; THENCE, S.49 DEGREES 5113" W., FOR A DISTANCE OF 7,680.47 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 2150, AND AN ARC LENGTH OF 206.29 FEET TO THE POINT OF TANGENCY; THENCE, S. 52 DEGREES 1303" W., FOR A DISTANCE OF 372.37 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 47 37", AND AN ARC LENGTH OF 680.12 FEET TO THE POINT OF TANGENCY; THENCE, S.44 DEGREES 2526" W., FOR A DISTANCE OF 88.88 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 6 DEGREES 1147", AND AN cularly described as follows: Beginning at U.S.L.M. 4566, U.S.L.M. 4566, identical with U.S.B.L.M. 665 (G106), a 6), a Copperweld Monument, Latitude 60" 09 15.8 THENCE, THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 1 DEGREE 1056", AND AN ARC LENGTH OF 103.17 FEET TO THE POINT OF TANGENCY; THENCE, 8.46 DEGREES 26 17" W., FOR A DISTANCE OF 3,505.95 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 3441", AND AN ARC LENGTH OF 158.71 FEET TO THE POINT OF TANGENCY; THENCE, S. 57 DEGREES 0058" W., FOR A DISTANCE OF 65.15 FEET TO A POINT OF CURVATURE; THENCE ALONG A CURVE TO THE Page 15 of 27
QLS
NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION
LEFT HAVING A RADIUS OF 1200.00 FEET, A CENTRAL ANGLE OF 20 DEGREES 21 - 12", AND AN ARC LENGTH OF 426.28 FEET TO THE POINT OF TANGENCY; THENCE, S. 36 DEGREES 39 46"W., FOR A DISTANCE OF 29.98 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 13 DEGREES 17 29, AND AN ARC LENGTH OF 278.37 FEET TO THE POINT OF TANGENCY; THENCE S. 49 DEGREES 5715" W., FOR A DISTANCE OF 3,665.57 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 4749", AND AN ARC LENGTH OF 331.35 FEET TO THE POINT OF TANGENCY; THENCE, S. 46 DEGREES 0926" W., FOR A DISTANCE OF 199.63 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 3944", AND AN ARC LENGTH OF 668.65 FEET TO THE POINT OF TANGENCY; THENCE,S. 53 DEGREES 4910" W., FORA DISTANCE OF 907.42 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 9 DEGREES 57 00", AND AN ARC LENGTH OF 208.39 FEET, TO THE POINT OF TANGENCY; THENCE, S.43 DEGREES 52 10" W., FOR A DISTANCE OF 68.67 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 5256", AND AN ARC LENGTH OF 513.32 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 4506" W., FOR A DISTANCE OF 2,490.22 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF I DEGREE 35 57", AND AN ARC LENGTH OF 139.55 FEET TO THE POINT OF TANGENCY; THENCE, S.48 DEGREES 0909" W., FOR A DISTANCE OF 862.92 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 2456, AND AN ARC LENGTH OF 298.06 FEET TO THE POINT OF TANGENCY, THENCE, S. 51 DEGREES 3405" W., FOR A DISTANCE OF 464.03 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 10,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 0823", AND AN ARC LENGTH OF 373.45 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 2542" W., FOR A DISTANCE OF 2,384.33 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A Page 16 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR
TOTAL
ACRES
INT %
WORKING INTEREST %
LEGAL DESCRIPTION
RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 37 50, AND AN ARC LENGTH OF 31683 FEET TO THE POINT OF TANGENCY; THENCE, S. 53 DEGREES 0332" W., FOR A DISTANCE OF 380.35 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 6 DEGREES 0134", AND AN ARC LENGTH OF 525.88 FEET TO THE POINT OF TANGENCY; THENCE, S. 47 DEGREES 01 , 58" W., FOR A DISTANCE OF 593.02 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 4043", AND AN ARC LENGTH OF 320.02 FEET TO THE POINT OF TANGENCY; THENCE, S. 50 DEGREES 4141" W., FOR A DISTANCE OF 219.31 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 2,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 37 13", AND AN ARC LENGTH OF 266.00 FEET TO THE POINT OF TANGENCY; THENCE, S. 43 DEGREES 0428" W., FOR A DISTANCE OF 192.56 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 3,000.00 FEET, A CENTRAL ANGLE OF 9 DEGREES 1417", AND AN ARC LENGTH OF 483.70 FEET, TO THE POINT OF TANGENCY; THENCE, S. 52 DEGREES 18 54" W., FOR A DISTANCE OF 534.20 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 49 15", AND AN ARC LENGTH OF 246.16 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 29 39" W., FOR A DISTANCE OF 1,021.99 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 43 DEGREES 39 58", AND AN ARC LENGTH OF 914.54 FEET, TO THE POINT OF TANGENCY; THENCE, N. 86 DEGREES 5023 - W., FOR A DISTANCE OF 1,342.55 FEET TO A POINT ON THE LINE OF MEAN HIGH TIDE, ALASKA STATE PLAN COORDINATE, ZONE 4, X=1 82,346; Y=2,493,695, BEING THE END POINT OF PREVIOUSLY DESCRIBED CENTERLINE. CONTAINING 326.50 ACRES, MORE OR LESS. 793985 224467 STATE OF ALASKA, DNR, DIVISION OF LAND, MINING & WATER 2/16/1990 ANCHORAGE B 2040 PG 181 100.00 28.95 100.0% CONTRACTUAL INTEREST 46.8% WI Page 17 of 27 A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH - EXTENDING 50
FEET ON EITHER SIDE OF THE CENTERLINE-AND 12,563.10 FEET IN LENGTH, OCCUPYING
QLS
LEASE GRANTOR
NO.
No.
EFFECTIVE RECORDING LESSOR TOTAL WORKING DATE DISTRICT INT % ACRES INTEREST % BK/PG
LEGAL DESCRIPTION
APPROXIMATELY 28.95 ACRES AND CONTAINING ONE 16 INCH OUTFALL PIPELINE. WITHIN: SECTION(S) 3, 4, 5 793929 32916 7/22/1996 ANCHORAGE 100.0 MISC BK 167 PG 462 210.0 50% TOWNSHIP 8 NORTH
RANGE 14 WEST
MERIDIAN
SEWARD A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH - EXTENDING 50 FEET ON EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL CONTRACTUAL PERMIT-OCCUPYING APPROXIMATELY 71 .51 ACRES AND CONTAINING 46.8% WI Two 10-INCH OIL AND GAS PIPELINES. WIThIN: SECTION(S) TOWNSHIP 8 NORTH 9NORTH 9 NORTH RANGE 14 WEST 13 WEST 14 WEST MERIDIAN SEWARD SEWARD SEWARD 3,4,5 29,31,32 35, 36
10/21/1968
71.51
PURPOSE: PIPELINE ROW FROM TBPF TO GRAYLING PLATFORM MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT W.C.M.C. NO. 2 OF U.S. SURVEY NO. 4520, A U.S. B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 4855.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S 32 DEGREES 3837.4" E., 708.79 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT. BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, S 73 DEGREES 24 23" E., 1,000.00 FEET TO PT. #A. ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE SOUTH 73 DEGREES 23 49.4" E., 957.03 FEET TO PT. #B; THENCE, SOUTH 79 DEGREES 1446.6" E., 405.63 FEET TO PT. #0; THENCE, N Page 18 of 27
QLS NO.
LEASE
GRANTOR
No.
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION
78 DEGREES 0555.5" E., 472.69 FEET TO PT. #D; THENCE, S. 86 DEGREES 1202.5" E., 537.32 FEET TO PT. #E; THENCE, N 73 DEGREES 05 19.9" E., 240.67 FEET TO PT. #F; THENCE, N 49 DEGREES 5321.1 " E., 132.30 FEET TO PT #G; THENCE, N 79 DEGREES 01 14.6" E., 611.41 FEET TO PT. #H; THENCE, N 38 DEGREES 3034.0" E., 183.19 FEET TO P #1; THENCE, N 73 DEGREES 4052.4" E., 1,400.62 FEET TO PT. #J; THENCE, N 70 DEGREES 1804.2" E., 1,200.37 FEET TO PT. #K; THENCE, N 75 DEGREES 51 09.1" E, 604.82 FEET TO PT. #L; THENCE, N 68 DEGREES 19 29.2" E, 599.57 FEET TO PT. #M; THENCE, N 88 DEGREES 0753.4" E., 192.87 FEET TO PT. #N; THENCE, N 67 DEGREES 5721.3" E., 225.42 FEET TO PT #0; THENCE, N 70 DEGREES 5027.7" E., 432.57 FEET TO PT. #P; THENCE, N 68 DEGREES 3156.7" E., 1,000.88 FEET TO PT. #Q; THENCE, N 72 DEGREES 4831.2" E., 794.55 FEET TO PT. #R; THENCE, N 71 DEGREES 1436.9" E., 2,806.91 FEET TO PT. #S; THENCE, N 75 DEGREES 0921.6 E., 612.04 FEET TO PT. #T; THENCE, N. 57 DEGREES 34 40.3" E., 200.94 FEET TO PT. #U; THENCE, N 78 DEGREES 34 15.5" E., 397.16 FEET TO PT. #V; THENCE, N 71 DEGREES 5847.5" E., 2,177.39 FEET TO PT. #W; THENCE, N 66 DEGREES 1646.1 " E., 205.28 FEET TO PT. #X; THENCE, N 69 DEGREES 4601.6" E., 396.48 FEET TO PT. #Y; THENCE, N 73 DEGREES 3150.3" E., 607.93 FEET TO PT. #Z; THENCE, N 61 DEGREES 30 17.9" E., 427.60 FEET TO PT. #M; THENCE, N 73 DEGREES 5357.2" E., 794.64 FEET TO PT. #BB; THENCE, N 76 DEGREES 4049.2" E., 598.91 FEET TO PT. #CC; THENCE, N 70 DEGREES 0826.0" E., 995.74 FEET TO PT. #DD; THENCE, N 73 DEGREES 15 03.2" E., 1,229.21 FEET TO PT. #EE; THENCE, N 70 DEGREES 1943.5" E., 1,082.26 FEET TOPT. #FF; THENCE, N 71 DEGREES 1541.9" E., 1,802.51 FEET TO PT. #GG; THENCE, N. 72 DEGREES 4824.6" E., 1,398.92 FEET TO PT. #HH; THENCE, N 67 DEGREES 5045.2" E., 897.94 FEET TO PT. #11; THENCE, N 71 DEGREES 3907.3" E., 379.73 FEET TO PT. #JJ; THENCE, N 79 DEGREES 56 11.5" E., 392.75 FEET TO PT. #KK; THENCE, N 70 DEGREES 5901.5" E., 611.56 FEET TO PT. #LL; THENCE, N 66 DEGREES 0839.2" E., 376.75 FEET TO PT. #MM; THENCE, N 71 DEGREES 45 30.4" E., 603.93 FEET TO PT. #NN; THENCE, N 50 DEGREES 30 16.2" E., 592.48 FEET TO PT. #00; THENCE, N 35 DEGREES 3722.4" E., 872.74 FEET TO PT. #PP; THENCE, N 21 DEGREES 0612.5" E., 593.89 FEET TO THE GRAYLING PLATFORM AND END OF SAID RIGHT-OF-WAY, Page 19 of 27
GRANTOR
EFFECTIVE DATE
LEGAL DESCRIPTION
A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH - EXTENDING 50 FEET ON EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL PERMIT - RUNNING 28,576.59 FEET IN LENGTH AND OCCUPYING APPROXIMATELY 63.52 ACRES AND CONTAINING VNO 8 -INCH OIL PIPELINES AND A 4-INCH GAS PIPELINE. WITHIN: SECTION(S) OWNSHIP RANGE MERIDIAN 6 8 NORTH 13 WEST SEWARD 1, 2, 3, 4,5 8 NORTH 14 WEST SEWARD
PURPOSE: THREE PIPELINES FROM THE DOLLY VARDEN PLATFORM TO TBPF MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT W.C.M.C. NO. 2 OF U.S. SURVEY NO. 4520, A U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 48 55.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S 31 DEGREES 10 E., 718.74 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT. BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, S 65 DEGREES 1738" E., 1,000.00 FEET TO PT. #1. ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE S65 DEGREES 1738" E., 902.11 FEET TO PT. #2; THENCE, S 67 DEGREES 51 13" E., 283.44 FEET TO PT. #10; THENCE, S 86 DEGREES 0442" E., 368.41 FEET TO PT. #20; THENCE, N 88 DEGREES 19 53" E., 379.01 FEET TO PT. #30; THENCE, N 82 DEGREES 1306" E., 1,408.71 FEET TO PT. #68; THENCE, N 85 Page 20 of 27
QLS NO.
LEASE No.
EFFEC DATE
DISTRICT Bk! PG
LESSOR INT %
LEGAL
N 84 DEGREES 0205" E., 6,331.66 FEET TO PT. 9593; THENCE, N 84 DEGREES 35 53" E., 1,979.90 FEET TO PT. #540; THENCE, N 82 DEGREES 5621 " E., 1,726.44 FEET TO PT. #493; THENCE, N 86 DEGREES 5034" E., 736.87 FEET TO PT. #473; THENCE, N 83 DEGREES 3027" E., 1,780.01 FEET TO PT. #425; THENCE, N 89 DEGREES 3451 " E., 934.45 FEET TO PT. #400; THENCE, N 83 DEGREES 10 , 36" E., 751.15 FEET TO PT. #380; THENCE, N 79 DEGREES 45 02" E., 1,669.83 FEET TO PT. #334; THENCE, N 86 DEGREES 4958" E., 1,125.32 FEET TO PT. #303; THENCE, $80 DEGREES 2823" E., 543.98 FEET TO PT. #288; THENCE, S 71 DEGREES 17 34" E., 633.05 FEET TO PT. #272; THENCE, S27 DEGREES 0332" E., 171.37 FEET TO PT. #267; THENCE, S 74 DEGREES 3043" E., 157.61 FEET TO PT. #264; THENCE, S 32 DEGREES 4936" E., 504.46 FEET TO PT. #250; THENCE, S 06 DEGREES 2605" E., 363.03 FEET TO PT. #240; THENCE, S 07 DEGREES 2924" W., 541.30 FEET TO PT. #225; THENCE, S 08 DEGREES 2705" E., 184.64 FEET TO PT. #220; THENCE, S 17 DEGREES 1243" E., 739.53 FEET TO PT. #200; THENCE, S 55 DEGREES 21 32" E., 372.29 FEET TO PT. #190; THENCE, S 62 DEGREES 41 16" E., 381.65 FEET TO PT. #180; THENCE, S 68 DEGREES 4722" E., 737.43 FEET TO THE DOLLY VARDEN PLATFORM AND END OF SAID RIGHT-OF-WAY, CONTAINING 63.52 ACRES, MORE OR LESS. 34813 STATE OF ALASKA, DNR, DIVISION OF LAND, MINING & WATER ANCHORAGE BK 3215 PG 672 100.00 100.0% CONTRACTUAL INTEREST 46.8%
I I I I I
A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH EXTENDING 50 FEET ON EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL PERMIT RUNNING 36,840.78 FEET IN LENGTH AND OCCUPYING APPROXIMATELY 82.51 ACRES AND CONTAINING TWO 8.625-INCH OIL AND GAS PIPELINES.
-
PURPOSE: PIPELINES FROM KING SALMON PLATFORM TO TBPF MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING ATW.C.M.C. NO 2 OF U.S. SURVEY NO. 4520, A Page 21 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 4855.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S 32 DEGREES 4710.9" E, 698.16 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT, BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, S 82 DEGREES 1924.1" E, 1,000.00 FEET TO PT. #A ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE S 82 DEGREES 197.2" E, 710.05 FEET TO PT. #B; THENCE, S 81 DEGREES 535.0" E, 463.91 FEET TO PT. #C; THENCE, N 89 DEGREES 3630.8" E, 179.13 FEET TO PT. #D; THENCE, N 75 DEGREES 935.6" E, 169.77 FEET TO PT. #E; THENCE, N 57 DEGREES 542.1" E, 166.63 FEET TO PT. #F; THENCE, N 60 DEGREES 28 58.3" E, 689.99 FEET TO PT. #G; THENCE, N 55 DEGREES 2257.6" E, 803.25 FEET TO PT. #H; THENCE, N 55 DEGREES 2324.7" E, 1,590.60 FEET TO PT. #1; THENCE, N 56 DEGREES 3854.5" E, 4,178.87 FEET TO PT. #J; THENCE, N 56 DEGREES 2138.2" E, 2,078.52 FEET TO PT. #K; THENCE, N 56 DEGREES 0 , 31.3" E. 3,616.97 FEET TO PT. #L; THENCE, N 56 DEGREES 4232.8" E, 4,993.89 FEET TO PT. #M; THENCE, N 54 DEGREES 5351.0" E, 1,416.46 FEET TO PT. #N; THENCE, N 56 DEGREES 948.5" E, 709.75 FEET TO PT. #0; THENCE, N 54 DEGREES 5739.8"E 1,002.41 FEET TO PT. #P; THENCE, N 62 DEGREES 221.7" E, 628.43 FEET TO PT. #Q; THENCE, N 48 DEGREES 4022.1" E, 425.83 FEET TO PT. #R; THENCE, N 58 DEGREES 717.1" E, 2,511.61 FEET TO PT. #S; THENCE, N 58 DEGREES 146.4" E, 3,899.65 FEET TO PT. #T; THENCE, N 60 DEGREES 13 6.2" E, 393.00 FEET TO PT. #U; THENCE, N 49 DEGREES 32 49.2" E, 330.24 FEET TO PT. #V; THENCE, N 34 DEGREES 412.1 " E, 281.93 FEET TO PT. #W; THENCE, N37 DEGREES 36 24.8" E, 221.28 FEET TO PT. #X; THENCE, N 35 DEGREES 5551.4" E. 378.61 FEET TO THE NORTH MCARTHUR RIVER PLATFORM A AND END OF SAID ROW, CONTAINING 82.51 ACRES, MORE OR LESS.
Page 22 of 27
QLS
NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING
INTEREST
LEGAL DESCRIPTION
793984
221085
5/10/1988
100.00
47.4
100.00 A PRIVATE RIGHT-OF-WAY FOR TWO 10.75" GAS PIPELINES AND ONE 8.625" OIL PIPELINE AND THE ACREAGE ENCOMPASSING THE STEELHEAD PLATFORM, RUNNING 34,248 FEET IN LENGTH AND EXTENDING A WIDTH OF 60 FEET, EXCEPT AS SHOWN IN THE AS-BUILT SURVEY OF ADL 221085 RECORDED AS PLAT 87-118 IN THE KENAI RECORDING DISTRICT, ENCOMPASSING 47.4 ACRES. SECTION(S) ,3,4,5 31,32, 33 6 TOWNSHIP 8 NORTH 9 NORTH 9 NORTH RANGE 14 WEST 13 WEST 14 WEST MERIDIAN SEWARD SEWARD SEWARD
761 32549
I /23/002
2005-0133920
100. CONTRACTUAL "KNOWN AS ATS 657: A PARCEL OF LAND LYING WITHIN PROTRACTED SECTIONS 32 AND 33, T9N, RI 4W, AND SECTION INTEREST 5, T8N, RI4W, SEWARD MERIDIAN, ALASKA, TO BE 468! DESIGNATED AS ATS No. 657 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT U.S.L.M. 4566, IDENTICAL WITH U.S.B.L.M. 665 (G106), A COPPERWELD MONUMENT, LATITUDE 60 09 15.80" N, LONGITUDE 151 47 09.68" W; THENCE N 75 35 E 66.35 FEET TO CORNER No. 1, IDENTICAL WITH U.S.S. No. 4566 M.C. NO. 4, AND THE TRUE POINT OF BEGINNING; THENCE N 66 0940" E 3200.00 FEET TO CORNER No. 2; THENCE S 22 15 20" E 2304.82 FEET TO CORNER No. 3; THENCE S 67 44 40" W 3180.57 FEET TO CORNER No. 4, IDENTICAL WITH U.S.S. No. 4520 M.C. No.2 AND A.D.L. No. 32299 M.C. No. 4; THENCE N 22 0 1520" W 1556.52 FEET ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO CORNER No. 5, IDENTICAL WITH U.S.S. No. 4566 M.C. No. lAND A.D.L. No. 32299 M.C. No. 3; THENCE N 23 5020" W 659.96 FEET CONTINUING ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO CORNER No. 5, IDENTICAL WITH U.S.S. No. 4566 M.C. No. I AND A.D.L. No. 32299 M.C. No. 3; THENCE N 23 5020" W 659.96 FEET CONTINUING ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO CORNER No. 1, AND THE TRUE POINT OF BEGINNING, CONTAINING 165.2 ACRES, MORE OR LESS, AND Page 23 ot27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION
ALASKA TIDELAND SURVEY (ATS) 1618 CONTAINING 5.00 ACRES, MORE OR LESS, LOCATED WITHIN SECTION 32, TOWNSHIP 9 NORTH, RANGE 14 WEST, SEWARD MERIDIAN, RECORDED IN THE ANCHORAGE RECORDING DISTRICT ON OCTOBER 24, 2002 AS Pt.xr 2002-132. THE TOTAL ACRES FOR BOTH ATSs Is 170.2 ACRES.
PURPOSE: TIDELAND LEASE FOR TRADING BAY PRODUCTION FACILITY AND BARGE LANDING
793933
NA
8/11/1986
BK1487PG 675
100.00
1.13
T8N, RI4W, SM, AK A RIGHT-OF-WAY SIXTY (60) FEET IN WIDTH, THE CENTERLINE BEING DESCRIBED AS FOLLOWS: FROM THE WC TO MC-2 OF U.S. SURVEY NO. 4520, FOUND BRASS CAP MONUMENT, PROCEED S 64 DEGREES 56W, 176.24 FEET TO THE TRUE POINT OF BEGINNING AND STATION 0+00, THENCE ALONG THE CENTERLINE OF THE 60 FT. WIDE PIPELINE RIGHT-OF-WAY ON THE FOLLOWING: S 25 DEGREES 04 E, 419.00 FEET TO POINT OF CURVE, THENCE ALONG A CURVE WHOSE CENTRAL ANGLE IS 56 DEGREES 00, RADIUS IS 188.07 FEET AND LENGTH IS 183.82 FEET TO END OF CURVE AND STA. 6+02.82, THENCE S 81 DEGREES 04 E, 222.10 FEET TO A POINT ON THE 1963 MEAN HIGH TIDE MARK OF COOK INLET BEING STA. 8+24.92 AND END OF RIGHT-OF-WAY, CONTAINING 1.13 ACRES MORE OR LESS. JOE MOSQUITO ALLOTMENT-LOT 1 OF THE LAND EMBRACED IN AMENDED U.S. SURVEY 4520, ALASKA, SITUATED ON THE WESTERLY SHORE OF COOK INLET APPROXIMATELY 7 MILES NORTHWESTERLY OF WEST
Page 24 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
FORELAND.
TOTAL
ACRES
INTEREST
LEGAL DESCRIPTION
795165
NA
12/26/1990
ANCHORAGE BK 3066 PG 37
NA
NA
319.99
50.00
E12 SECTION 36, T9N, R15W, S.M., ALASKA ACCORDING TO THE ALASKA STATE CADASTRAL SURVEY PLAT, PLAT #9088, ANCHORAGE RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, CONTAINING 319.99 ACRES, MORE OR LESS. LOCATION OF THE KUSTATAN WASTE WATER DISPOSAL FACILITY T8N, RI4W, SM, AK SURVEY OF STATE LAND AOL 37596 LOCATED WITHIN FRACTIONAL NE/4, SECTION 06, T8N, RI4W, SM, ACCORDING TO PLAT NO. 74-19 FILED IN THE ANCHORAGE RECORDING OFFICE ON JANUARY 24, 1974, CONTAINING 156.67 ACRES MORE OR LESS. SUBJECT TO AOL 33333 - RIGHT OF WAY PERMIT ISSUED TO COOK INLET PIPELINE COMPANY 50 FEET IN WIDTH. THE TRADING BAY PRODUCTION FACILITY IS LOCATED ON THIS PROPERTY.
816482
NA
6/19/1974
NA
NA
156.67
50.00
823509
NA
2/26/1968
NA
NA
36.0
50.00
T8N, RI4W, SM, AK A PARCEL OF LAND LYING WITHIN THE NW14 OF PROTRACTED SECTION 5 OF CADASTRAL SURVEY T8N, R14W., SM ALASKA, SURVEY OF STATE LAND AOL NO. 32299 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NW CORNER OF SECTION 05, TSN, RI4W, LATITUDE 60 DEGREES 4912.81" N., LONGITUDE 151 DEGREES 4714.41" W., A U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT; THENCE EAST 79.48 FEET TO THE INTERSECTION OF LINE 2-3 OF U.S.S. NO. 4566, AND CORNER NO. 1, WHICH IS THE TRUE POINT OF BEGINNING; THENCE S. 23 DEGREES 5020" E., 455.05 FEET ALONG LINE 2-3 OF U.S.S. NO. 4566 TO CORNER NO. 2 IDENTICAL WITH (U.S.S. NO. 4566 CORNER NO. 2); THENCE N 66 DEGREES 1030" E 330.00 FEET ALONG LINE
Page 25 of 27
QLS
NO.
LEASE
No.
LESSOR!
GRANTOR
EFFECTIVE
DATE
RECORDING
DISTRICT BK/PG
LESSOR INT %
ROY INT
%
TOTAL
ACRES
INTEREST
%
LEGAL DESCRIPTION 1-2 U.S.S. NO. 4566, TO MEANDER CORNER NO. 3 IDENTICAL WITH (U.S.S. NO. 4566 M.C. NO. I); THENCE S. 22 DEGREES 1520" E 1,556.52 FEET, ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO MEANDER CORNER NO.4 IDENTICAL WITH (U.S.S. NO. 4520, M.C. 2); THENCE S. 64 DEGREES 45 50" W 1,274.61 FEET, ALONG LINE 2-3 U.S.S. NO. 4520, TO CORNER NO. 5; THENCE N. 00 DEGREES 0240" W 2,266.66 FEET TO CORNER NO. 6, BEING PREVIOUSLY DESCRIBED HEREIN AS THE NW CORNER, SECTION 05, T8N, RI4W; THENCE EAST 79.48 FEET TO CORNER NO. 1, AND THE TRUE POINT OF BEGINNING, CONTAINING 36.00 ACRES, MORE OR LESS. THE TRADING BAY PRODUCTION FACILITY IS LOCATED ON THIS PROPERTY.
SUBJECT TO AND INCLUDING THE FOLLOWING (as may be supplemented and/or amended): 1. 2. 3. 4. 5. 6. 7. 8. 9. QLS 819554 -TRADING BAY UNIT JOINT OPERATING AGREEMENT, DATED FEBRUARY 27, 1967 QLS 823460 - TRADING BAY UNIT AGREEMENT, DATED FEBRUARY 6, 1967 QLS 825502 - TRADING BAY FIELD AND UNIT ALIGNMENT AGREEMENT AREA OF MUTUAL INTEREST, DATED JANUARY 1, 2002 QLS 823352 - KUSTATAN WASTEDISPOSAL FACILITY JOINT OPERATING AGREEMENT, DATED AUGUST 1, 1991 QLS 826069 - TRADING BAY COOK INLET PIPE LINE COMPANY FACILITY USE AGREEMENT, DATED JANUARY 1, 1985 QLS 833489 - AMENDED AND RESTATED TRADING BAY FACILITIES AGREEMENT, DATED SEPTEMBER 1, 2009 OILS 823468 - TRADING BAY FIELD JOINT OPERATING AGREEMENT, DATED JUNE 12, 1996 QLS NA-ASSET EXCHANGE AGREEMENT UNION-PACIFIC-MARATHON FOR SLOT 10 M-32RD WELL, DATED AUGUST 11, 2009 QLS 793986 - RIGHT-OF-WAY EASEMENT AGREEMENT FROM MARATHON OIL COMPANY AND UNION OIL COMPANY OF CALIFORNIA TO STEWART PETROLEUM COMPANY, DATED JUNE 1, 1993 10. QLS 825906 - GRANT OF RIGHT-OF-WAY FROM UNION OIL COMPANY OF CALIFORNIA, ET AL TO FOREST OIL CORPORATION, DATED SEPTEMBER 29, 2005 11. QLS NA - FUEL GAS SUPPLY AGREEMENT BETWEEN UNION OIL COMPANY OF CALIFORNIA AS OPERATOR OF THE TRADING BAY UNIT, TRADING BAY FIELD & TRADING BAY PRODUCTION FACILITY AND FOREST OIL CORPORATION, DATED NOVEMBER 25, 2002 12. QLS 828200 - GAS BALANCING AGREEMENT, DATED SEPTEMBER 1, 1991 13. QLS NA - TERMINALING AGREEMENT, DATED EFFECTIVE MAY 23, 2011 14. QLS NA - EQUIPMENT MASTER RENTAL AGREEMENT, DATED EFFECTIVE MARCH 8, 2002 Page 26 of 27
15. QLS NA - OIL PROCESSING AND HANDLING AGREEMENT, DATED NOVEMBER 19, 1992 16. QLS NA - FACILITIES CONSTRUCTION AGREEMENT FOR PIPELINE AND TIE-IN FACILITIES TO CIGGS AT TRADING BAY PRODUCTION FACILITY, DATED EFFECTIVE AUGUST 1, 2005 17. QLS NA - AGREEMENT FOR CONSTRUCTION AND OPERATION OF LIQUID EXTRACTION UNIT AND COMPRESSION FACILITY, DATED NOVEMBER 15, 1968 18. QLS NA - AGREEMENT RE: FUEL GAS, DATED NOVEMBER 22, 1996 19. QLS NA - CONTEMPORANEOUS GAS EXCHANGE AGREEMENT, DATED EFFECTIVE JANUARY 1, 2006 20. QLS NA - LEASE EXCHANGE AGREEMENT BETWEEN COOK INLET ENERGY, LLC AND UNION OIL COMPANY OF CALIFORNIA DATED EFFECTIVE OCTOBER 1, 2011 21. Conveyance of Overriding Royalty Interest BY PACIFIC ENERGY ALASKA OPERATING LLC TO AND IN FAVOR OF MLQ, L.L.C, DATED August 24, 2007 and effective January 1, 2007 22. Conveyance of Overriding Royalty Interest BY PACIFIC ENERGY ALASKA OPERATING LLC TO AND IN FAVOR OF SPCP GROUP ALASKA LLC, DATED August 24, 2007 and effective January 1, 2007 23. Conveyance of Overriding Royalty Interest BY PACIFIC ENERGY ALASKA OPERATING LLC TO AND IN FAVOR OF SPCP GROUP III ALASKA LLC, DATED August 24, 2007 and effective January 1, 2007
Page 27 of 27
EXHIBIT B - FORM OF CONVEYANCE ASSIGNMENT AND BILL OF SALE This Assignment and Bill of Sale (this "Assignment") from Pacific Energy Alaska Operating LLC, a Delaware limited liability company with an address of 111 West Ocean Boulevard, Suite 1240, Long Beach, CA 90802 ("Grantor"), to Hilcorp Alaska, LLC a Delaware limited liability company with an address of 3800 Centerpoint Drive, Suite 100, Anchorage, Alaska 99503 ("Grantee"), is executed on the dates set forth in the respective notary certifications below, but effective for all purposes as of 7:00 a.m. Alaskan Standard Time on 2012 (the "Effective Time"). RECITALS WHEREAS, Grantor owns certain undivided interests in and to the Assets (as defined below); and WHEREAS, pursuant to that certain Letter Agreement between Grantor and Grantee dated as of September 13, 2012 (the "Letter Agreement"), Grantor has agreed to assign to Grantee, all of Grantors right, title, and interest in and to the Assets in accordance with the terms hereof. ASSIGNMENT Section 1. Assignment. NOW THEREFORE, Grantor, for and in consideration of the sum of Ten Dollars ($10) cash in hand paid and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby GRANTS, BARGAINS, SELLS, AND CONVEYS, and by these presents has GRANTED, BARGAINED, SOLD, AND CONVEYED unto Grantee all of the right, title, and interest of Grantor in and to the following, (collectively the "Assets"): (a) the oil, gas and/or mineral leases, subleases and top leases which are described or referred to on Exhibit A hereto, together with any interest in the Lands authorizing the owner to explore for, develop and produce oil and/or gas, whether created by or under the Leases or otherwise, including, but not limited to, fee mineral interests, royalty interests, production payments, term, reversionary or conditional interests, working interests, farmout and farm-in rights, purchase or put options and preference rights, referred to separately as a "Lease" (collectively the "Leases"); (b) the lands covered by the Leases, together with the lands and leases pooled, unitized, communitized or consolidated therewith (the "Lands"); (c) all wells located on the Lands drilled for oil and/or gas, and their constituents and byproducts in whatever form, together with water wells and injection or disposal wells, whether currently drilling, producing, operating, shut-in, or temporarily abandoned (the "Wells");
(d) all rights and interests in, under or derived from all unitization or pooling agreements in effect with respect to any of the Leases or Wells and the units created thereby (the "Units"); (e) the oil, gas, casinghead gas, condensate, distillate and other liquid and gaseous hydrocarbons produced from or attributable to the Leases, Wells, Lands or Units, and the products refined and manufactured therefrom, and the accounts and proceeds from the sale or disposition thereof, to the extent produced or accrued, or held in storage on the Leases or Lands (the "Production"); (f) all surface or subsurface machinery, equipment, pipelines, flowlines, gathering lines, facilities, supplies and other property located on or under the Leases (the "Facilities"); all equipment, fixtures, facilities and supplies located on the Leases and/or (g) Lands or elsewhere, and used or held for use in connection with the ownership, operation and production of the Leases, Lands and Wells, including, but not limited to, pipelines, tanks, separators, dehydrators, compressors and other similar or related personal property (the "Equipment"); (h) the Leases, together with all other agreements as to which the Leases, Lands, and Wells are subject or bound, including pooling and unitization agreements, production purchase and sale contracts, gathering or transportation agreements, joint venture agreements, farm-ins or farm-outs, exploration agreements, joint operating agreements, tax partnership agreements, surface leases, surface use agreements, water purchase agreements, permits, rightsof-way, easements, servitudes, licenses, consents, professional services agreements, vendor agreements, and other similar contracts or agreements relating to the drilling, production or operation of the Leases, Lands and/or Wells, and the storage, treatment, transportation, processing, sale or disposal of the Production and/or water or other substances produced therewith or attributable thereto (the "Agreements"); (i) all franchises, licenses, permits, approvals, consents, certificates and other authorizations and other rights granted by any national or state government, county, municipality or other governmental subdivision thereof, or any court or any governmental department, commission, board, bureau, agency or other instrumentality of any of them and all certificates of convenience or necessity, immunities, privileges, grants, and other rights, that relate to the Assets or the ownership or operation of any thereof all (i) accounts, instruments, and general intangibles (as such terms are U) defmed in 9.102 of the Uniform Commercial Code, as adopted in the State of Alaska) attributable to the Assets with respect to any period of time on or after the Effective Time; and (ii) liens and security interests in favor of PEAO, whether choate or inchoate, under any law, rule, or regulation or under any of the Agreements (A) arising from the ownership, operation, or sale or other disposition on or after the Effective Time of any of the Assets or (B) to the extent arising in favor of PEAO under any joint operating agreement or any other agreement in which PEAO is the operator of any Assets (the "Accounts");
(k) all geological, geophysical, geochemical or other technical data, abstracts, title reports, title opinions, leases, lease records, curative materials, reserve estimates, seismic interpretations, maps, surveys and any other materials or information in Grantors possession related to the Leases, Lands and/or Wells, whether in hard-copy or electronic form, but excluding any reports, estimates or opinions prepared solely for internal use by Grantor, and any of the foregoing which is subject to non-disclosure under the provisions of any licensing or similar agreement in effect at the Effective Time (the "Information"); and (1) all liens, encumbrances, rights and benefits of any nature or character, whether existing or created under any of the Agreements or applicable law, and which are owned by or held for the benefit of Grantor in connection with any of the Agreements and/or the Production, including but not limited to accounts, instruments and general intangibles as defined in the Uniform Commercial Code, as adopted in the State of Alaska (the "Ancillary Rights"). TO HAVE AND TO HOLD the Assets, together with all rights, titles, interests, estates, remedies, powers and privileges thereunto appertaining, unto Grantee, its successors and assigns, forever, subject, however, to the terms and conditions of this Assignment.
Section 2. Subject to Agreements. Grantee is taking the Assets subject to the terms of the Agreements, and Grantee hereby assumes and agrees to fulfill, perform, pay, and discharge Grantors obligations under such Agreements from and after the Effective Time. Section 3. Further Assurances. From and after the date hereof, Grantor, without further consideration, will use its reasonable good faith efforts to execute and deliver or cause to be executed and delivered, such good and sufficient instruments of conveyance and transfer in recordable form, and take such other action as may be reasonably required of Grantor to effectively vest in Grantee beneficial and legal title to the Assets conveyed pursuant to this Assignment and, if applicable, to put Grantee in actual possession of such Assets. After the date of this Assignment, Grantor and Grantee shall, without further consideration, execute and deliver, or cause to be executed and delivered, all instruments in recordable form, and take such actions, as may be reasonably required of Grantor or Grantee to accomplish the conveyance and transfer of the Assets, any change in operator, and otherwise consummate the transactions contemplated by this Assignment and the Letter Agreement, and shall send all required notices with respect to the Assets. Section 4. Successors and Assigns. This Assignment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. Section 5. Titles and Captions. All article or section titles or captions in this Assignment are for convenience only, shall not be deemed part of this Assignment and in no way define, limit, extend, or describe the scope or intent of any provisions hereof. Section 6. Governing Law. This Assignment and the rights of the parties hereunder shall be governed by, and construed in accordance with, the laws of the State of Alaska. Section 7. Counterparts. This Assignment may be executed in any number of counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all such counterparts shall constitute but one instrument.
Signature Page - Grantor IN WITNESS WHEREOF, the Parties hereto have executed this Assignment on the dates of the acknowledgement set forth below, to be effective, however, for all purposes, as of the Effective Time. GRANTOR: PACIFIC ENERGY ALASKA OPERATING, LLC By: Name: Gerald A. Tywoniuk Title: Authorized Representative
State of County of The foregoing instrument was acknowledged before me on by Gerald A. Tywoniuk, authorized representative of Pacific Energy Alaska Operating, LLC, a Delaware limited liability company, on its behalf.
[Seal]
GRANTEE: }IILCORP ALASKA, LLC By: Name: Jason C. Rebrook Title: Vice President State of Texas County of Harris The foregoing instrument was acknowledged before me on by Jason C. Rebrook, Vice President of Hilcorp Alaska, LLC, a Delaware limited liability company, on behalf of said limited liability company.
[Seal]
[END OF EXifiBIT BI
EXHIBIT C
APPLICATION FOR ASSIGNMENT OF INTEREST IN OIL AND GAS LEASE STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS
1. 2. 3. LeaseADL# Assignor: Assignors address:
DNRUSEpLY,
Unit: PA Acct
4. 5.
6.
percent working interest OR working percent overriding royalty interest percent working Interest OR percent overriding royalty Interest percent working Interest AND/OR percent overriding royalty interest
7.
B. Assignor is retaining:
9. LANDS AFFECTED by this assignment of Interest (attach Exhibit A if necessary) Meridian T_, R ,
containing
The Notification Lessee for the purpose of receiving any and all notices from the State of Alaska In connection with
the lease will be: Name Alin Address City, State, Zip
Telephone
We, the undersigned, affirm (1) that the Information provided on this application Is true and correct and that it is filed pursuant to 11 MC 82.605 and 11 MC 82.615, and (2) that both parties to this agreement are qualified to transfer or hold an Interest in oil and gas leases pursuant to 11 MC 81200 and II MC 82.205. If the assignor were to surrender this lease or this lease were to terminate, the assignor would be required to deliver up the land in good order and condition to the satisfaction of the commissioner, which may Include the requirements that the assignor plug and abandon all existing wells, remove all existing surface facilities, and fill and grade all existing pits in compliance with this lease and applicable regulations (Obligations). After the effective date of this assignment, the assignee Is responsible for performing the Obtigatlons. The assignee is primarily responsible for performing the Obligations and any other work necessary to deliver up the land In good order and condition. But if the assignee falls to perform the Obligations, the assignor is the assignees surety and Is secondarily responsible for performing the Obligations.
DO8G 25.84 ((SASS ASSIG51.MU11J Reed 3112 DNR 1101 13
ASSIGNOR:
Authorized Signature Name & Tile (Print or Type) UNITED STATES OF AMERICA )SS. STATE OF THIS CERTIFIES that on the
before me appeared .20 known to me to be the person(s) named as assignor(s) or the assignors authorized representative who executed this assignment and acknowledged voluntarily signing It. day of Notary Public My Commission expires:
ASSIGNEE:
Authorized Signature Name & Title (Print or Type) UNITED STATES OF AMERICA )SS. STATE OF THIS CERTIFIES that on the ____________ day of
before me appeared 1 20 __ known tome to bathe person(s) named as assignee(s) or the assignees authorized representative who executed this assignment and acknowledged voluntarily signing it. Notary Public My Commission expires:
APPROVAL
W. C. Barton, Director Division of Oil and Gas, DNR, State of Alaska Recorders Office (optional) - Recording District After recording, please return to:
hIND
Exhibit "A"
(Legal Description Only) ADL
Exhibit B
[PEAH Agreement]
DOCS_LA:259002.1 68773-003
H1Lcom
ALASKA,,
LLC
3800 Centerpoint Drive Suite 100 Anchorage AK 99503 Phone: 907/777-8300 Fax: 907/777-8301
September 13, 2012 Pacific Energy Alaska Holdings, LLC 111 West Ocean Boulevard, Suite 1240 Long Beach, CA 90802 Attention: Gerald A. Tywoniuk Email: gtywoniukipacenergy.com RE: Letter Agreement by and between Pacific Energy Alaska Holdings, LLC, a Delaware limited liability company ("PEAH"), and Hilcorp Alaska, LLC, a Delaware limited liability company ("HAK"). Gentlemen: This letter agreement (this "Agreement") will confirm the understanding and agreement between PEAH and HAK (collectively, the "Parties" and each, a "ParVy") as follows: 1. Identification of Stock and Description of Relevant Circumstances. A. Effective as of May 24, 2010, and as ordered by the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") (Case No. 09-10785, Dkt, No. 1604), the bankruptcy estate of PEAR abandoned all of its right, title and interest in and to its 50% (20,000 shares) of the issued and outstanding shares of common stock in Cook Inlet Pipe Line Company (the "Stock") pursuant to section 554 of title 11 of the United States Code. In connection therewith, PEAR consented to the delivery of a certificate representing 19,999 shares of the Stock to Silver Point Finance, LLC ("Silver Point") as collateral agent for certain of PEAHs lenders (the "Silver Point Certificate"). The certificate that represents 1 share of common stock of Cook Inlet Pipe Line Company is hereinafter referred to as the "Union Certificate" and, together with the Silver Point Certificate, the "Certificates"). For purposes of this Agreement, references to the Stock shall be deemed to include references to the Certificates unless a contrary intent is expressed in connection therewith. Pursuant to the confirmed and effective First Amended Chapter 11 Plan of Liquidation for Pacific Energy Resources Ltd., et al., as Modified (the "Plan"), Gerald A. Tywoniuk was appointed the plan representative (the "Plan Representative"). Pursuant to the Plan and subject to the approval of the Bankruptcy Court, the Plan Representative is authorized to cause PEATI to assign to HAK all of PEAHs right, title and interest in and to the Stock.
B.
C.
Pursuant to and subject to the terms and conditions of this Agreement, including approval of the Bankruptcy Court or the Supervisory Board, PEAR desires to assign, and HAK desires to accept assignment of, all of PEAHs right, title and interest in and to the Stock, whether such right, title and interest is held by PEAR as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). Until this Agreement is executed by PEAH, neither the delivery of this Agreement by HAK to PEAR nor the contents of this Agreement shall create any rights or obligations for PEAR or HAK.
2. Assignment. Subject to the terms and conditions of this Agreement and in consideration for HAKs payment to PEAR of $50,000.00 (the "Fee") and the covenants and agreements of IJAK that are contained herein, PEAR agrees to assign, convey and deliver to HAK, and HAK agrees to accept assignment of and acquire from PEAR at the closing of the transactions contemplated hereby (the "Closing"), all of PEARs right, title and interest in and to the Stock, whether such right, title and interest is held by PEAR as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). The assignment of the Stock shall be effective as of 7:00 a.m. Alaskan Standard Time on the same date as the Closing (the "Effective Time"). Representations and Warranties. (a) PEAR and Plan Representative. PEAH and the Plan Representative hereby represent and warrant to FLAK as of the Execution Date and the Closing Date that (i) subject to satisfaction of the regulatory approvals Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), PEAR and the Plan Representative have all requisite authority to enter this Agreement and consummate the transactions contemplated hereby, including, but not limited to, all requisite approval of the Supervisory Board (as defined in the Plan), (ii) to the best of PEAR or the Plan Representatives knowledge, there are no pending suits, actions, or other proceedings pending before any federal, state, local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign (a "Governmental Authority") or arbitrator, or threatened against PEAR or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, and (iii) neither PEAR nor the Plan Representative has sold, assigned, pledged, transferred, or hypothecated any of the Stock or any of its interests therein, or signed any power of attorney or other authorization related to the Stock which is now outstanding and in force or otherwise disposed of any of its right, title and interest in and to the Stock, except the abandonment of the Stock by PEA-Hs bankruptcy estate as referenced in Section 1(A) above. (b) HAK. HAK represents and warrants to PEAH as of the Execution Date and as of the Closing Date that (i) subject to satisfaction of the regulatory approvals Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), HAK has all requisite authority to enter into this Agreement and consummate the transactions contemplated hereby and (ii) to the best of HAKs knowledge, there are no pending suits, actions, or other proceedings pending before any Governmental Authority or arbitrator, or threatened against HAK or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
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4.
Conditions to Closing. (a) Reciprocal Closing Conditions. The obligation of each Party to consummate the transactions contemplated hereby is subject, at the option of such Party, to the satisfaction on or prior to the Closing Date of all of the following conditions: (i) the representations and warranties of the other Party contained in this Agreement shall have been true and correct on and as of the Execution Date and as of the Closing Date, (ii) the covenants and agreements of the other Party to be performed on or before the Closing Date in accordance with this Agreement shall have been duly performed in all material respects, (iii) the other Party shall have executed and delivered all documents and instruments required to be delivered by the other Party pursuant to Section 5, and (iv) there shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any such court or Governmental Authority for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any such Governmental Authority or any other third party indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby. HAK-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of HAK to consummate the transactions contemplated hereby is subject, at the option of HAK, to the following: (i) HAKs receipt, prior to the Closing Date, of all consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all courts of competent jurisdiction and all Governmental Authorities (including an appropriate order or other approval from the Regulatory Commission of Alaska (the "RCA") with respect to the transactions contemplated hereby), and PEAHs receipt, prior to the Closing date, of all consents, (ii) approvals, orders or authorizations of the Bankruptcy Court with respect to the transactions contemplated herein. In connection therewith, PEAH shall (x) within ten (10) days after the date hereof, make the filings or pleadings with the Bankruptcy Court required of them seeking such approval or authorization (y) comply, at the earliest practicable date, with any request for additional information or material requested by them from the Bankruptcy Court and (z) use commercially reasonable efforts to obtain such approvals at the earliest practicable date prior to the Closing Date. The order from the Bankruptcy Court approving the transaction shall be in a form and substance satisfactory to HAK, and any such order shall be a final order, which order is in effect and not subject to stay (the "Bankruptcy Order"). Upon receipt of the Bankruptcy Order, PEAFE shall provide prompt written notice to HAK of such event.
(b)
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(iii) Without limitation of the foregoing, upon HAKs request, PEAH shall cooperate in good faith with HAK in order to assist HAK in obtaining any orders or approvals that are required in connection with the transactions contemplated hereby, including in connection with the filing of a joint application or any other necessary filing with the RCA and the execution thereof. (c) PEAH-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of PEAR to consummate the transactions contemplated hereby is subject, at the option of PEAH, to the following: HAK shall cause Cook Inlet Pipeline Company ("CIPL") to release the $21 million claim of CIPL against PEAR (as stipulated in the bankruptcy proceedings).
5. Closing and Closing Deliverables. Assuming satisfaction or waiver of the conditions to closing set forth in Section 4, the Closing shall take place 5 Business Days after the later to occur of: (i) HAKs delivery to PEAH of the written notice contemplated in Section 4(b)(i)and (ii) 5 PEAHs delivery to HAK of the written notice contemplated in Section 4(b)(ii) (the "Closing Date"). The Closing shall occur at 11:00 A.M. Alaskan Standard Time on the Closing Date at the office of HAK or at such other time and place (or by such other electronic means) as the Parties agree in writing. At the Closing: (a) (b) HAK shall pay to PEAR the Fee via wire transfer of immediately available funds to the account(s) designated in writing by PEAH; PEAH shall (i) deliver to Hilcorp the Silver Point Certificate that is then in the possession of PEAR (after diligent inquiry for same prior to the Closing), Silver Point or any of their respective affiliates, if any (Hilcorp is already in possession of the Union Certificate) or, as a result of Silver Points inability to locate the Silver Point Certificate as of the date of execution of this Agreement, deliver such other instrument as HAK may require to replace the missing Silver Point Certificate if such cannot be located before closing; and (ii) convey all of its right, title and interest in and to the Stock to HAK by stock transfer agreement duly executed by PEAH and flAK in substantially the form attached hereto as Exhibit A (the "Assignment"); flAK and PEAH shall execute any documents required by the RCA in order to obtain the RCAs approval with respect to the transactions contemplated hereby; PEAR shall execute and deliver an executed Form W-9 and an executed certificate of non-foreign status as required in Treasury Regulation 1.14452(b)(2); and HAK and PEAH shall each execute and deliver to one another any other documents that are reasonably required in order to effect the consummation of the transactions contemplated hereby.
(c) (d)
(e)
6. Additional Bankruptcy-Related Provisions. HAK shall have no right to a distribution from PEAHs estate under the Plan on account of any claim in favor of flAK (or any claim assigned to HAK). Furthermore, each of HAK and PEAH covenants not to sue the other Party -4-
based on any claim arising under or related to the Stock. Nothing herein shall waive, limit, impair, or restrict any right or defense of HAK or any affiliate thereof, to protect, preserve, assert and enforce its rights, remedies, defenses and interests against any and all persons and entities other than PEAH. Termination. Either Party may terminate this Agreement at any time prior to the Closing 7. by delivering a termination notice to the other Party if (a) the Closing has not occurred as of December 15, 2012, unless an extension is mutually agreed to in writing by the Parties, (b) the representations or warranties of the other Party are not true and correct as of the Execution Date, at any time prior to the Closing or on the Closing Date, or (c) the other Party has not performed its covenants in all material respects to the extent required prior to the Closing Date pursuant to this Agreement. Without limitation of the foregoing, at any time between the date first-written above and the Closing, HAK shall have the right to terminate this Agreement by delivering a termination notice to PEAH if, in connection with any due diligence it may conduct or otherwise, HAK becomes aware of (i) any matter which would cause the Stock to be unacceptable to HAK in its reasonable judgment or (ii) any cost, obligation or liability associated with ownership of the Stock that is unacceptable to HAK in its reasonable judgment. Notwithstanding the foregoing, no Party shall be entitled to deliver such a termination notice if the Closing has failed to occur as a result of the such Partys negligent or willful failure to perform or observe in any material respect such Partys covenants and agreements hereunder. Upon the delivery of any such termination notice, this Agreement shall be deemed to be void and of no further force and effect, except that the provisions of Sections 8, 9-12, 13, 15 and 17 shall survive such termination and continue in full force and effect indefinitely. It is understood and agreed between HAK and PEAH that the 8. Confidentiality. terms and existence of this Agreement shall remain confidential by and between HAK and PEAR and shall not, except as expressly permitted herein, be disclosed to any third parties. HAK and PEAH may each disclose the terms and existence of this Agreement (i) to each such Partys respective affiliates stockholders, members, officers, directors, employees, agents, lenders, advisors, representatives, accountants current and prospective investors, partners or transferees, attorneys and consultants (collectively, "Representatives") (ii) in the course of any trial or other administrative or legal proceeding involving a Party or a Partys Representative, or (iii) as required by any applicable securities law or other applicable law, regulation, order (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed) or the rules of any applicable national stock exchange or (iv) to the extent reasonably necessary to obtain any approval of any Governmental Authority of competent jurisdiction, including the DNR and the Bankruptcy Court. Notices. All notices, communications and document deliveries (each, a "Notice") 9. required or permitted to be given hereunder shall be in writing and shall be delivered personally, by registered or certified overnight United States mail, return receipt requested or by facsimile transmission or email. Any Notice given in accordance herewith shall be deemed to have been given only when delivered to the party intended to receive it. For purposes of this Agreement, (i) PEARs contact information for all Notices shall be the contact information first-written above and (ii) HAKs contact information for all Notices shall be as set forth below. HAK and PEAH may change all or any portion of its contact information by giving written notice to the other in a manner that complies with this Section 9.
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Hilcoip Alaska, LLC 1201 Louisiana, Suite 1400 Houston, Texas 77002 Attn: Jason C. Rebrook, Vice President Phone: (713) 209-2400 Facsimile: (713) 289-2650 Email: jrebrook(i),hilcorp.com 10. Acknowledgments: Counterparts: Time is of the Essence. Each Party acknowledges and agrees that (i) it has read and understood this Agreement, (ii) is able to freely determine whether it is advisable to execute this Agreement (and consummate the transactions contemplated hereby) and (iii) it has either consulted with an attorney regarding the terms and provisions of this Agreement and any other documents executed in connection therewith or has voluntarily elected not to do Neither this Agreement nor any other documents executed in connection herewith shall be construed against any of the Parties by reason of the authorship of any provision contained therein, This Agreement maybe executed and delivered (including by facsimile or pdf transmission) by each Party in any number of counterparts, each of which shall be an original instrument, but all of which together shall constitute but one and the same instrument and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party (including by facsimile or pdf transmission) Time is of the essence to both Parties in the performance of this Agreement and the transactions contemplated hereby. Governing Law. This Agreement shall be governed by and construed and enforced in 11. accordance with the laws of the State of Delaware. The Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") to interpret and enforce the terms of this Agreement. If for any reason the Bankruptcy Court declines to exercise jurisdiction, then the Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States District Court for the District of Delawaie Each Party waives any objection which it may have pertaining to improper venue or forum non-convemens to the conduct of any litigation or proceeding in the foregoing courts Each Party agrees that any and all process directed to it in any such proceeding or litigation may be served upon it outside of the State of Delaware with the same force and effect as if such service had been made within the State of Delaware. EACH OF THE PARTIES HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY LITIGATION, ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THiS AGREEMENT, 12. Expenses; Waivers: Severability. Each Party will pay its own expenses and costs incidental to the negotiation and completion of the transaction, including legal fees. Any failure by any Party to comply with any of its obligations, agreements or conditions herein contained may be waived by the Party to whom such compliance is owed by an instrument signed by the Party to whom compliance is owed and expressly identified as a waiver, but not in any other manner. It is the intent of the Parties that the provisions contained in this Agreement shall be severable. Should any provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion.
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Assignment: Binding Agreement. Neither Party shall assign or otherwise transfer all or 13. any part of this Agreement, nor shall any Party delegate any of its rights or duties hereunder, without the prior written consent of the other Party and any transfer or delegation made without such consent shall be null and void. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns. Subject to the terms set forth herein, the full execution of this Agreement creates a legally binding and enforceable agreement between the Parties regarding the matters set forth herein. Amendment: No Third-Party Beneficiaries; Entire Agreement. This Agreement may be 14. amended or modified only by an agreement in writing signed by PEAH and flAK and expressly identified as an amendment or modification. Nothing in this Agreement shall entitle any Person other than PEAEI and HAK to any claim, cause of action, remedy or right of any kind. This Agreement, and the documents to be delivered or executed pursuant to this Agreement, constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understanding or discussions. Limitation on Damages. Notwithstanding anything to the contrary contained herein, 15. none of HAK, PEAH or any of their respective affiliates shall be entitled to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby and each of HAK and PEAH, for itself and on behalf of their respective affiliates, hereby expressly waives any right to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby. Disclaimer. EXCEPT FOR REPRESENTATIONS AND WARRANTIES CONTAINED 16. IN THIS AGREEMENT, PEAR MAKES NO, AND PEAR EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN THIS OR ANY OTHER INSTRUMENT, AGREEMENT OR CONTRACT DELIVERED HEREUNDER OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREUNDER OR THEREUNDER. Further Assurances. At and after Closing, PEAH and HAK shall each execute, 17. acknowledge and deliver all such further conveyances, notices, affidavits, assumptions, releases and acquittances, and such other instruments, and shall each take such further actions as may be necessary or appropriate to assure fully to flAK or PEAH (including their successors and assigns) as the case may be, that the transactions described in this Agreement shall be completed and that all of the Stock intended to be conveyed under the terms of this Agreement are so conveyed, including such Stock that are improperly described herein or inadvertently omitted from this Agreement and/or the assignments or other instruments executed contemporaneously herewith (including the exhibits attached to each). Construction: Interpretation. Capitalized terms defined elsewhere in this Agreement shall 18. have the meanings so given them herein. If any period of days is referenced in this Agreement and such period would expire on a day that is not a Business Day then such period shall instead expire on the first Business Day following such day. Unless otherwise required by the context in which any term appears, the following rules of construction shall apply for all purposes of this
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Agreement. Unless the context otherwise requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter, the singular shall include the plural, and the plural shall include the singular. The words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation." All references to Sections refer to sections of this Agreement, and all references to Exhibits are to exhibits attached hereto, each of which is incorporated herein for all purposes. Headings, titles and subtitles in any article, section or subsection of this Agreement are included for convenience only and do not affect, and will not be used in, the interpretation of this Agreement. The words "herein," "hereof," "herewith" and "hereunder" and similar terms in this Agreement shall refer to this Agreement as a whole and not to any particular section or subsection of this Agreement. 19. Specific Performance. Without limitation of any other provision in this Agreement, the Parties acknowledge that an award of damages for failure to comply with this Agreement would not be an adequate remedy for the Party attempting to enforce this Agreement, and accordingly the Parties expressly authorize any such Party to bring an action against the other Party for a permanent or temporary injunction, to compel the specific performance or any other equitable remedy by such other Parties of their obligations to comply with such provisions without the necessity of posting bond or other security in connection therewith. This remedy is in addition to any other remedies at law or in equity. 20. Execution by PEAH. If the foregoing correctly sets forth the understanding and agreement between HAK and PEAR, please so indicate by executing and delivering to HAK an executed counterpart of the signature page attached hereto. 21. PEAO Letter Agreement. Contemporaneously with the execution of this Agreement, HAK and Pacific Energy Alaska Operating LLC entered into that certain letter agreement of even date herewith (the "PEAO Letter Agreement"). The PEAO Letter Agreement contemplates a Closing on same date as set forth herein, but the parties hereto acknowledge that if the Closing under the PEAO Letter Agreement has not yet occurred but the conditions set forth herein have been satisfied and the parties are ready to proceeding to Closing under this Agreement, the Closing of this Agreement may occur prior to Closing under the PEAO Letter Agreement. [Remainder of Page Intentionally Left Blank; Signature Pages Follow.]
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IN WITNESS W}IERBOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCORP ALASKA, LLC
By: Name: aon C. 1ebrook Title: ice President Date:, PACIFIC ENERGY ALASKA OPERATING LLC
_o ,- -~J q
IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCORP ALASKA, LLC
By: Name: Mon C. *ebrook Title: Vice President Date: PACIFIC ENERGY ALASKA OPERATING LLC
_ 0,-
Nj
EXHIBIT A -- FORM OF STOCK TRANSFER AGREEMENT This Stock Transfer Agreement ("Agreement") is dated as of but to be effective as of October 1, 2012, and is executed and delivered by Pacific Energy Alaska Holdings LLC, a Delaware limited liability company ("Transferor"), to and for the benefit of Hilcorp Alaska, LLC, a Delaware limited liability company ("Transferee"). Transferor and Transferee are sometimes collectively referred to herein as the "Parties" and, each a "Party" RECITALS WHEREAS, Transferor desires to transfer, and Transferees desire to obtain from Transferor, all of Transferors right, title and interest in and to nineteen thousand nine hundred ninety-nine (19,999) shares of common stock ("Common Stock") of Cook Inlet Pipeline Company ("CIPL") on the terms and subject to the conditions set forth below; and WHEREAS, this Agreement is made in furtherance of that certain Letter Agreement between Transferor and Transferee dated September 13, 2012 ("Letter Agreement"); and WHEREAS, any capitalized term used herein but not defined herein shall have the meaning ascribed to such term in the Letter Agreement. AGREEMENT NOW, THEREFORE, the Parties hereby agree as follows: 1. Transfer of Shares. Upon the terms and subject to the conditions set forth in this Agreement and in consideration of receipt of Fee specified in the Letter Agreement and the representations, warranties, covenants and agreements contained therein, Transferor has agreed to transfer, assign and sell to the Transferee all of Transferors right, title and interest in and to the Common Stock. Upon the execution of this Agreement by Transferor and Transferee, and to the extent such certificates can be located, Transferor shall deliver to Transferee the certificate(s) representing the Common Stock, duly endorsed for transfer or accompanied by duly executed stock powers transferring such Common Stock to the Transferee, but in event such certificates cannot be located after diligent inquiry by Transferor, such other instruments as may be reasonably acceptable to Transferee to effectuate the transfer of the Common Stock; and following such transfer, the Transferor shall immediately cease to be a shareholder of CIPL and hereby releases and waives all rights that he, she or it may have in respect of its ownership of Common Stock. 2. Parties in Interest. This Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns. 3. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings of the parties with respect thereto.
4. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to principles of conflicts of laws). IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date firstwritten above. TRANSFEROR: PACIFIC ENERGY ALASKA HOLDINGS LLC By: Name: Gerald A. Tywoniuk Title: TRANSFEREE: HILCORP ALASKA, LLC By: Name: Jason C. Rebrook Title: Vice President
Exhibit C
DOCS_LA:259002.1 68773-003
Exhibit C
PEAO Cash on hand, June 3O, 2012 Estimated remaining costs of winding down the Liquidating Debtors Federal and state income taxes owing for 2012 tax year $ 1,454,685 (19,000) (440,000) $ PEAH PERL $ 1,331,172 (290,000)
Available for remaining creditor distributions prior to Trading Bay and CIPL Assignments to HAK Cash proceeds from Trading Bay and CIPL Assignments, the subjects of this motion Less: Estimated legal costs to complete transaction and secure court approval Bonus payments to Supervisory Board member and Plan Representative Estimated other costs Estimated incremental Federal and state income taxes Incremental net proceeds to the Liquidating Debtors from the Assignments Total cash available for additional distributions to creditors Distribute to class 6, unpaid balance of general unsecured claims Distribute to class 6, post effective date interest on general unsecured claims Distribute to sole member of PEAO Distribute to class 5, unpaid balance of general unsecured claims Distribute to class 5, post effective date interest on general unsecured claims Distribute to sole member of PEAH Distribute to class 4, unpaid balance of general unsecured claims Distribute to class 4, a portion of post effective date interest on general unsecured claims Total Distributions Remaining cash balance on dissolution of Liquidating Debtors Notes: [1] In addition to the amounts shown above, distributions to date for classes 6, 5 & 4, general unsecured creditors, total: (2) Reflects HAK causing the State of Alaska to withdraw its $40.0 million class 6 claim as PEAOs condition to close the Trading Bay Assignment [3] Reflects HAK causing CIPL to withdraw its $21.1 million class 5 claim as PEAOs and PEAHs conditions to closing the Trading Bay and CIPL Assignments, respectively
50,000 (1,000)
1,041,172
B A+B = C
49,000 49,000
1,041,172 [1]
(2,057,976) [1][2] (174,981) (4,948,728) 4,948,728 (4,997,728) (3] 4,997,728 (5,689,729) [1] (349,171) D C-D $ (7,181,685) $ (49,000) $ (1,041,172) -
71,308
$ 7,863,052
Exhibit D
[Proposed Order]
DOCS_LA:259002.1 68773-003
In re:
)
)
ORDER APPROVING ASSIGNMENT OF ASSETS TO HILCORP ALASKA, LLC AND DISTRIBUTION OF PROCEEDS THEREOF The Liquidating Debtors Motion for Order Approving Assignment of Assets to Hilcorp Alaska, LLC and Distribution of Proceeds Thereof (the "Motion") came before this Court for hearing on November 6, 2012 at 10:00 a.m. (the "Hearing"). The Motion seeks an order approving: (i) the transfer of the assets described on Exhibit A to this Order (the "Trading Bay Assets") from Pacific Energy Alaska Operating LLC ("PEAO") to Hilcorp Alaska, LLC pursuant to the Letter Agreement dated September 13, 2012 between PEAO and HAK (the "PEAO Agreement") and (ii) the transfer of the assets described on Exhibit B to this Order (the "CIPL Stock") from debtor Pacific Energy Alaska Holdings, LLC ("PEA H") to HAK pursuant to the Letter Agreement dated September 13, 2012 between PEAH and HAK (the "PEAH Agreement"). Copies of the PEAO Agreement and the PEAH Agreement are attached to this Order as Exhibit A and Exhibit B respectively. The Court has reviewed the Motion and any objections thereto, has considered the evidence presented and the arguments of counsel at the Hearing and finds as follows:
The Liquidating Debtors (along with the last four digits of each of their federal tax identification numbers) are: Pacific Energy Resources Ltd. (3442); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available), and Pacific Energy Alaska Operating LLC (7021).
D005_LA:258003.6 68773-003
(1)
The Court has jurisdiction over this matter pursuant to 28 U.S.C. 157
and 1334, the Liquidating Debtors First Amended Chapter 11 Plan of Liquidation, as Modified (the "Plan"), and the Order Confirming First Amended Chapter 11 Plan of Liquidation, as Modified (the "Confirmation Order"). (2) and (0). (3) 1409. (4) (5) Notice of the Motion was sufficient under the circumstances. PEAO abandoned the Trading Bay Assets pursuant to order entered on Venue of this proceeding is proper pursuant to 28 U.S.C. 1408 and This is a core proceeding pursuant to 28 U.S.C. 157(b)(2)(A), (L), (N)
September 2, 2009 [Docket No. 832]. (6) Notwithstanding the abandonment of the Trading Bay Assets, PEAO,
operating through the Plan Representative and the Supervisory Board, has the requisite authority pursuant to the Plan and the Confirmation Order to transfer PEAOs right, title and interest in and to the Trading Bay Assets to HAK and to otherwise enter into and consummate the transactions contemplated by the PEAO Agreement. (7) PEAR abandoned the CIPL Stock pursuant to order entered on May 24,
2010 [Docket No. 1560]. (8) Notwithstanding the abandonment of the CIPL Stock, PEAH, acting
through the Plan Representative and the Supervisory Board, has the requisite authority pursuant 2
DOCS_LA:258003.6 68773-003
to the Plan and the Confirmation Order to transfer its right, title and interest in and to the CIPL Stock to HAK and to otherwise enter into and consummate the transactions contemplated by the PEAH Agreement. (9) Entering into the transactions contemplated by the PEAO Agreement and
the PEAH Agreement is in the best interests of the Liquidating Debtors estates, their creditors, and other parties in interest, and the compensation under the PEAO Agreement and PEAH Agreement is fair and reasonable, constitutes fair consideration and reasonably equivalent value under the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act, and all other applicable laws of the United States, any state, territory, possession, or the District of Columbia. A valid and sound business purpose exists for approval of the transactions contemplated in the PEAO Agreement and PEAH Agreement. (10) The PEAO Agreement and PEAH Agreement, and all documents ancillary
thereto, were negotiated at arms-length and in good faith. (11) In negotiating the assignment of the Trading Bay Assets and the CIPL
Stock to HAK, the Plan Representative (Gerald Tywoniuk) and the Supervisory Board (Ryan Bateman) acted beyond the duties required of them under the Plan and, in doing so, made a substantial contribution to these cases that justifies the payment of additional compensation requested in the Motion (the "Bonuses")
3
D005_LA:258003.6 68773-003
(12) The proposed distribution of the net proceeds of the assignments of the Trading Bay Assets pursuant to the PEAO Agreement and the CIPL Stock pursuant to the PEAH Agreement as is set forth on Exhibit C to this Order is fair and equitable. IT IS THEREFORE, ORDERED that the Motion is granted and all objections to the Motion, if any, are overruled, and it is further ORDERED that all parties in interest have had the opportunity to object to the relief requested in the Motion and all objections to the Motion or the relief requested therein that have not been withdrawn, waived, or settled, including all reservations of rights included therein which are not otherwise provided for by this Order are overruled on the merits and in their entirety, and it is further ORDERED that PEAO is authorized to enter into the PEAO Agreement and to transfer the Trading Bay Assets to HAK pursuant to the terms of the PEAO Agreement, and it is further ORDERED that PEAH is authorized to enter into the PEAH Agreement and to transfer the CIPL Stock to HAK pursuant to the terms of the PEAH Agreement, and it is further ORDERED that the consideration provided under the PEAH Agreement and PEAO Agreement shall be deemed to constitute reasonably equivalent value and fair consideration under the Bankruptcy Code, Uniform Fraudulent Conveyance Act, the Uniform
4
DOCS_LA:258003.6 68773-003
Fraudulent Transfer Act, and all other applicable the laws of the United States, any state, territory, possession or the District of Columbia, and is fair and reasonable, and it is further ORDERED that the provisions of this Order and any actions taken pursuant hereto shall survive entry of any order, which may be entered converting Debtors chapter 11 cases to chapter 7 cases or dismissing any Debtors chapter 11 cases, and the terms and provisions of this Order shall continue in this or any superseding case under the Bankruptcy Code. Any order granting conversion or dismissal of any of the Debtors chapter 11 cases shall specifically provide that this Order shall survive such conversion or dismissal, and it is further ORDERED that the failure to include any particular provision of the PEAO Agreement or PEAH Agreement in this Order shall not diminish or impair the effectiveness of that provision, it being the intent of the Court and the parties that all of the provisions of the PEAO Agreement and PEAH Agreement be authorized in their entirety, subject, however, to the specific terms of this Order, and it is further ORDERED that the Liquidating Debtors are authorized to distribute the net proceeds of the assignments of the Trading Bay Assets pursuant to the PEAO Agreement and the CIPL Stock pursuant to the PEAH Agreement as described on Exhibit C to this Order (including but not limited to paying the Bonuses to Mr. Tywoniuk and Mr. Bateman).
Dated:
.2012
Exhibit A
[PEAO Agreement]
DOCS_LA:259002.1 68773-003
Hmcom
ALASKA, LLC
ISeptember 13, 2012 Pacific Energy Alaska. Operating LLC 1.1 .1. West Ocean .Bonlevard, Suite 1240 Long Beach, CA 90802 Attention Gerald A Tywonluk Email gIMonftA@pacenergy.co
3800 Centerpoint Drive Suite 100 Anchorage AK 9.9503 Phone: 9,07/777-8300 Eax: 907/777-8301
RE: Letter Agreement by and between Pacific Energy Alaska Operating LLC, a Delaware limited liability company ("PBAO"), and .Hilcorp Alaska, LLC, a Delaware limited liability H company "AK"). Ge ntl emen: This letter agreement. (this "Agreemen:t") will confirm the understanding and agreement between PEAO and HAK (collectively, the "Parties" and each, a Party") as follows: 1. Identification of Assets and Description of Relevant. Circumstances. A. Effective as of September 2, .2009, and as ordered by the United, States ]3ankruptcy. court for the District of Delaware (the "Bankruptcy Court") (Case Noi 09-1075, Dkt No 832), the bankruptcy estate ofPEAO abandoned all of-its right, title and interest in and to the oil and gas assets and properties described on Exhibit A to This Agreement, together with all rights incidental or appurtenant thereto (the "Assets") pursmiant to section 554 of title 1.1 of the United States Code, Pursuant to the confirmed, and effective First Amended. Chapter 11 Plan of Liquidation for Pacific Eneigy Resources Ltd, et aL, as Modified (the iin"), Gerald A. TywOnhik was appointed, the plan representative (the "i Representative") Pursuant to the Plan and subject to the approval of the Bankruptcy Court, the Plan Representative is authorized to cause PEAO to assign to HAK all of PEAOs right, We and interest in and to the Assets.. Pursuant to and, subjeet to the terms and conditions of this Agreement, including approval of the Bankruptcy Court or the Supervisory Board (as defined in the Plan), PEAO desires to assign, and HAK desires to accept assignment of, all of PEAOs right, title and interest in and to the Assets, whether such right, title and interest is held by PEAO as a debtor, debtor-in-possession or Liquidating Debtor
B.
C.
(as defined in the Plan). Until this Agreement is executed by PEAO, neither the delivery of this Agreement by HAK to PEAO nor the contents of this Agreement shall create any rights or obligations for PEAO or HAK. 2. Assignment. Subject to the terms and conditions of this Agreement and in consideration for HAKs payment to PEAO of $6,800,000.00 (the ""), the covenant by HAK set forth in Section 6 below not to sue PEAO for unpaid joint interest billings or unpaid overriding royalty interests with respect to the Assets, and all other covenants and agreements of HAK that are contained herein, PEAO agrees to assign, convey and deliver to HAK, and HAK agrees to accept assignment of and acquire from PEAO at the closing of the transactions contemplated hereby (the "Closing"), all of PEAOs right, title and interest in and to the Assets, whether such right, title and interest is held by PEAO as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). The assignment of the Assets shall be effective as of 7:00 a.m. Alaskan Standard Time on the same date as the Closing (the "Effective Time"). Representations and Warranties. (a) PEAO and Plan Representative. PEAO and the Plan Representative hereby represent and warrant to HAK as of the Closing Date that (i) subject to satisfaction of the regulatory approvals in Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), PEAO and the Plan Representative have all requisite authority to enter this Agreement and consummate the transactions contemplated hereby, including, but not limited to, all requisite approval by either the Bankruptcy Court or the Supervisory Board, (ii) to the best of PEAO or the Plan Representatives knowledge, there are no pending suits, actions, or other proceedings pending before any federal, state, local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign (a "Governmental Authority") or arbitrator against PEAO or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, and (iii) neither PEAO nor the Plan Representative has sold, assigned, pledged, transferred, or hypothecated any of the Assets or any of its interests therein, or signed any power of attorney or other authorization related to the Assets (except as to HAK or its predecessor in interest) which is now outstanding and in force or otherwise disposed of any of its right, title and interest in and to the Assets, except the abandonment of the Assets by PEAOs bankruptcy estate as referenced in Section 1(A) above. (b) HAK. HAK represents and warrants to PEAO as of the Closing Date that (i) subject to satisfaction of the regulatory approvals in Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), flAK has all requisite authority to enter into this Agreement and consummate the transactions contemplated hereby and (ii) to the best of HAKs knowledge, there are no pending suits, actions, or other proceedings pending before any Governmental Authority or arbitrator, or threatened against flAK or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
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4.
Conditions to Closing. (a) Reciprocal Closing Conditions. The obligation of each Party to consummate the transactions contemplated hereby is subject to approval by either the Bankruptcy Court or the Supervisory Board, and at the option of such Party, to the satisfaction on or prior to the Closing Date of all of the following conditions: (i) the representations and warranties of the other Party contained in this Agreement shall have been true and correct as of the Closing Date, (ii) the covenants and agreements of the other Party to be performed on or before the Closing Date in accordance with this Agreement shall have been duly performed in all material respects, (iii) the other Party shall have executed and delivered all documents and instruments required to be delivered by the other Party pursuant to Section 5, and (iv) there shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any such court or Governmental Authority for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any such Governmental Authority or any other third party indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby. HAK-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of HAK to consummate the transactions contemplated hereby is subject, at the option of HAK, to the following: (i) HAKs receipt, prior to the Closing Date, of all consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all courts of competent jurisdiction and all Governmental Authorities (including, the Alaska Department of Natural Resources (the "DNR")). Upon satisfaction of such condition, HAK shall provide prompt written notice to PBAO of such event; and (ii) PEAOs receipt, prior to the Closing date, of all consents, approvals, orders or authorizations of the Bankruptcy Court with respect to the transactions contemplated herein. In connection therewith, PEAO shall (x) within ten (10) days after the date hereof, make the filings or pleadings with the Bankruptcy Court required of them seeking such approval or authorization (y) comply, at the earliest practicable date, with any request for additional information or material requested by them from the Bankruptcy Court and (z) use commercially reasonable efforts to obtain such approvals at the earliest practicable date prior to the Closing Date. The order from the Bankruptcy Court approving the transaction shall be in a form and substance satisfactory to HAK, and any such order shall be a final order, which order is in effect and not subject to stay (the "Bankruptcy Order"). Upon receipt of the Bankruptcy Order, PEAO shall provide prompt written notice to HAK of such event.
(b)
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(c)
PEAO-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of PEAO to consummate the transactions contemplated hereby is subject, at the option of PEAO, to the following: (i) HAK shall cause the State of Alaska to release the $40 million claim of the State of Alaska against PEAO (as stipulated in the bankruptcy proceedings) which is specifically related or allocated to both the Assets and the Spurr Platform; and (ii) HAK shall cause Cook Inlet Pipeline Company ("CIPL") to release the $21 million claim of CIPL against PEAH (as stipulated in the bankruptcy proceedings).
5.
(a) Assuming satisfaction or waiver of the conditions to closing set forth in Section 4, the Closing shall take place 5 Business Days after the later to occur of: (i) HAKs delivery to PEAO of the written notice contemplated in Section 4(b)(i) and (ii) PEAOs delivery to HAK of the written notice contemplated in Section 4(b)(ii) (the "Closing Date"). The Closing shall occur at 11:00 A.M. Alaskan Standard Time on the Closing Date at the office of HAK or at such other time and place (or by such other electronic means) as the Parties agree in writing. At the Closing: (i) HAK shall pay PEAO the Fee via wire transfer of immediately available funds to the account(s) designated in writing by PEAO; (ii) PEAO shall convey all of its right, title and interest in and to the Assets to HAK by an assignment and bill of sale duly executed by PEAO and HAK in substantially the form attached hereto as Exhibit B (the "Conveyance"), in sufficient duplicate originals to allow recording in all appropriate jurisdictions; (iii) HAK and PEAO shall execute a DNR-approved assignment form substantially in the form attached hereto as Exhibit C (the "DNR Assignment") and submit such executed DNR Assignment to the DNR for the DNRs final approval documentation; (iv) PEAO shall execute and deliver an executed Form W-9 and an executed certificate of non-foreign status as required in Treasury Regulation 1.14452(b)(2); and (v) HAK and PEAO shall each execute and deliver to one another any other documents that are reasonably required in order to effect the consummation of the transactions contemplated hereby. (c) Within five (5) business days after the Closing, HAK shall file a motion to dismiss with prejudice (in a form acceptable to PEAO) of the following proceeding: Hilcorp Alaska, LLC v. Pacific Energy Alaska Operating, LLC; Case No. 3AN-12-07653 CI; In the Superior Court for the State of Alaska, Third Judicial District at Anchorage.
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6. Additional Bankruptcy-Related Provisions; Miscellaneous. HAK shall have no right to a distribution from PEAOs estate under the Plan on account of any claim in favor of HAK (or any claim assigned to HAK). Furthermore, each of HAK and PEAO covenants not to sue the other Party based on any claim arising under or related to any agreement under which flAK (or any predecessor in interest to flAK) operates the Assets, including, without limitation, any such claim that is related to unpaid joint interest billings under any such agreement or unpaid overriding royalty interests with respect to the Assets. Nothing herein shall waive, limit, impair, or restrict any right or defense of flAK or any affiliate thereof, to protect, preserve, assert and enforce its rights, remedies, defenses and interests against any and all persons and entities other than PEAO. Finally, HAK agrees to release PEAO from any claims by SPCP Group Alaska LLC, SPCP Group III Alaska LLC or MLQ, LLC regarding the payment of any proceeds related to the overriding royalty interests owned by such entities in and to the Assets that arose prior to the Effective Time. 7. Termination. Either Party may terminate this Agreement at any time prior to the Closing by delivering a termination notice to the other Party if (a) the Closing has not occurred as of December 15, 2012, unless an extension is mutually agreed to in writing by the Parties, (b) the representations or warranties of the other Party are not true and correct as of the Closing Date, or (c) the other Party has not performed its covenants in all material respects to the extent required prior to the Closing Date pursuant to this Agreement. Without limitation of the foregoing, at any time between the date first-written above and the Closing, HAK shall have the right to terminate this Agreement by delivering a termination notice to PEAO if, in connection with any due diligence it may conduct or otherwise, flAK becomes aware of (i) any matter which would cause a material Asset to be unacceptable to HAK in its reasonable judgment or (ii) any cost, obligation or liability associated with any of the Assets that is unacceptable to HAK in its reasonable judgment. Notwithstanding the foregoing, no Party shall be entitled to deliver such a termination notice if the Closing has failed to occur as a result of the such Partys negligent or willful failure to perform or observe in any material respect such Partys covenants and agreements hereunder. Upon the delivery of any such termination notice, this Agreement shall be deemed to be void and of no further force and effect, except that the provisions of Sections 8, 912, 13, 15 and 17 shall survive such termination and continue in full force and effect indefinitely. Confidentiality. 8. It is understood and agreed between HAK and PEAO that the terms and existence of this Agreement shall remain confidential by and between flAK and PEAO and shall not, except as expressly permitted herein, be disclosed to any third parties. HAK and PEAO may each disclose the terms and existence of this Agreement (i) to each such Partys respective affiliates stockholders, members, officers, directors, employees, agents, lenders, advisors, representatives, accountants current and prospective investors, partners or transferees, attorneys and consultants (collectively, "Representatives") (ii) in the course of any trial or other administrative or legal proceeding involving a Party or a Partys Representative, or (iii) as required by any applicable securities law or other applicable law, regulation, order (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed) or the rules of any applicable national stock exchange or (iv) to the extent reasonably necessary to obtain any approval of any Governmental Authority of competent jurisdiction, including the DNR and the Bankruptcy Court.
-5-
9i Notices. All :notices, communications and document deliveries. (each, a Notice") required or permitted to be given hereunder shall be in writing and shall be delivered personally, by registered or certified oven, ight United States mail, return receipt requested or by facsimile transmission or email Any Notice given in accordance herewith shall be deemed to have been given only when delivered to the party intended to receive it For purposes of this Agreement, (i) 1BAOs contact information for all Notices shall be the contact information .first-written, above and (ii) I-IAKs contact mforniation for all Notices shall be as set forth below. HAR and PEAO may change all or any portion of its contact .information by giving written notice to the other in a manner that complies WiththisSection. Hilcorp. Alaska, LLC 1201 Louisiana, Suite 1400 Houston, Texas 77002 Attn:. Jason C. Rebrook, Vice President Phone: (713) 209-2400 Facsimile (713) 289-2650 Email: jrebrook@hilcorp.com 10. Acknowledgments: Counterparts; Time is of the: Essence. Each Party acknowledges and agrees that (i) it has read and understood this Agreement, (ii) is able to freely determine whether it is advisable to execute this Agreement (and consummate the transactions contemplated hereby) and (iii) it has either consulted with an attorney regarding the terms and provisions of this Agreement and any other documents executed in connection therewith or has voluntarily elected not to do Neither this Agreement nor any other documents executed in connection herewith shall be construed against any of the Parties by reason of the authorship of any provision contained therein This Agreement may be executed and delivered (including by facsimile or pdf transmission) by each Party m any number of counterparts, each of winch shall be an original instrument, but all of which together shall constitute but one and the same instrument and shall become effective when one or more counterparts have been signed by each Party and delivered to the other. Party (including by facsimile or pdf. transmission) Time is of the essence to both Parties in the performance of this Agreement and the transactions contemplated hereby.. Ii. Governing Law. This Agreement shall be governed by and construed and enforced in .accordance with the laws of the State of Delaware The Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States Bankrqptcy Court for the District of Delaware ("Bankruptcy Court") to mterpret and enforce the terms of this Agreement If for any reason the Bankruptcy Court declines to exercise jurisdiction, then the Parties hereby irrevocably consent to the exclusive jurisdiction and venuePf the United States District Court for the District of Delaware Each Party Waives any objection winch it may have pertaining to improper venue or forum non-conveniens to the conduct of any litigation or proceedmg in the foregoing courts Each Party agrees that any and all process directed to it in any such proceeding or litigation may be served upon it outride of the State of Delaware with the same force and effect as if such service had been made within the State of Delaware EACH OF THE PARTIES HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL. BY JURY IN ANY LITIGATION, ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT.
-6-
Expenses: Waivers: Severability. Each Party will pay its own expenses and costs 12. incidental to the negotiation and completion of the transaction, including legal fees. Any failure by any Party to comply with any of its obligations, agreements or conditions herein contained may be waived by the Party to whom such compliance is owed by an instrument signed by the Party to whom compliance is owed and expressly identified as a waiver, but not in any other manner. It is the intent of the Parties that the provisions contained in this Agreement shall be severable. Should any provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion. 13. Assignment; Binding Agreement. Neither Party shall assign or otherwise transfer all or any part of this Agreement, nor shall any Party delegate any of its rights or duties hereunder, without the prior written consent of the other Party and any transfer or delegation made without such consent shall be null and void. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns. Subject to the terms set forth herein, the full execution of this Agreement creates a legally binding and enforceable agreement between the Parties regarding the matters set forth herein. Amendment: No Third-Party Beneficiaries: Entire Agreement. This Agreement may be 14. amended or modified only by an agreement in writing signed by PEAO and HAK and expressly identified as an amendment or modification. Nothing in this Agreement shall entitle any Person other than PEAO and HAK to any claim, cause of action, remedy or right of any kind. This Agreement, and the documents to be delivered or executed pursuant to this Agreement, constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understanding or discussions. 15. Limitation on Damages. Notwithstanding anything to the contrary contained herein, none of HAK, PEAO or any of their respective affiliates shall be entitled to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby and each of HAK and PEAO, for itself and on behalf of their respective affiliates, hereby expressly waives any right to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby. Disclaimer. EXCEPT FOR REPRESENTATIONS AND WARRANTIES CONTAINED 16. IN THIS AGREEMENT, PEAO MAKES NO, AND PEAO EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN THIS OR ANY OTHER INSTRUMENT, AGREEMENT OR CONTRACT DELIVERED HEREUNDER OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREUNDER OR THEREUNDER. Further Assurances. At and after Closing, PEAO and HAK shall each execute, 17. acknowledge and deliver all such further conveyances, notices, assumptions, releases and acquittances, and such other instruments, and shall each take such further actions as may be necessary or appropriate to assure fully to HAK or PEAO (including their successors and assigns) as the case may be, that the transactions described in this Agreement shall be completed
-7-
and that all of the Assets intended to be conveyed under the terms of this Agreement are so conveyed, including such Assets that are improperly described herein or inadvertently omitted from this Agreement and/or the assignments or other instruments executed contemporaneously herewith (including the exhibits attached to each). 18. Construction; Interpretation. Capitalized terms defined elsewhere in this Agreement shall have the meanings so given them herein. If any period of days is referenced in this Agreement and such period would expire on a day that is not a Business Day then such period shall instead expire on the first Business Day following such day. Unless otherwise required by the context in which any term appears, the following rules of construction shall apply for all purposes of this Agreement. Unless the context otherwise requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter, the singular shall include the plural, and the plural shall include the singular. The words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation." All references to Sections refer to sections of this Agreement, and all references to Exhibits are to exhibits attached hereto, each of which is incorporated herein for all purposes. Headings, titles and subtitles in any article, section or subsection of this Agreement are included for convenience only and do not affect, and will not be used in, the interpretation of this Agreement. The words "herein," "hereof," "herewith" and "hereunder" and similar terms in this Agreement shall refer to this Agreement as a whole and not to any particular section or subsection of this Agreement. 19. Specific Performance. Without limitation of any other provision in this Agreement, the Parties acknowledge that an award of damages for failure to comply with this Agreement would not be an adequate remedy for the Party attempting to enforce this Agreement, and accordingly the Parties expressly authorize any such Party to bring an action against the other Party for a permanent or temporary injunction, to compel the specific performance or any other equitable remedy by such other Parties of their obligations to comply with such provisions without the necessity of posting bond orother security in connection therewith. This remedy is in addition to any other remedies at law or in equity. 20. Execution by PEAO. If the foregoing correctly sets forth the understanding and agreement between HAK and PEAO, please so indicate by executing and delivering to HAK an executed counterpart of the signature page attached hereto. 21. PEAH Letter Agreement. Contemporaneously with the execution of this Agreement, HAK and Pacific Energy Alaska Holdings, LLC entered into that certain letter agreement of even date herewith (the "PEAII Letter Agreement"). The PEAH Letter Agreement contemplates a Closing on same date as set forth herein, but the parties hereto acknowledge that if the Closing under the PEAH Letter Agreement has not yet occurred but the conditions set forth herein have been satisfied and the parties are ready to proceeding to Closing under this Agreement, the Closing of this Agreement may occur prior to Closing under the PEAH Letter Agreement.
-8-
IN WITNESS. WHEREOF, this Agreement has, been signed by each Of the Parties oathe date below each such Partys signatuEe. HILCOR]? ALASKA, LLC
By: Name: a on C. Ilebrook Title: ice President Date: PACIFIC ENERGY ALASKA OPERATING LLC
IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature.
HILCORP ALASKA, LLC
By: Name: on C. 1cbrook Title: Uce President Date: PACIFIC ENERGY ALASKA OPERATING LLC
ck-d
----
EXHIBIT A - DESCRIPTION OF ASSETS TRADING BAY UNIT AND TRADING BAY FIELD COOK INLET, ALASKA All of Assignors right, title and interest in and to the following, including, but not limited to, any operating rights, royalty, overriding royalty and working interests in said lands: OIL AND GAS LEASES QLS
NO.
817104
LEASE No.
17579
EFFECTIVE DATE
211/1962
LESSOR
INT % 100.00
ROY INT %
12.50
TOTAL
ACRES
2,240.00
LEGAL DESCRIPTION
As TO A 46.80% WORKING INTEREST IN 2,240.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT I SECTION 4: ALL, 640.00 ACRES; SECTION 9: W1/2, 320.00 ACRES; SECTION 16: NWI/4, 160.00 ACRES; SECTION 17: ALL, 640.00 ACRES; SECTION 20: N1/2, SWI/4, 480.00 ACRES. PERTAINS TO LAND FROM THE SURFACE DOWN TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 46.80% WORKING INTEREST IN 2,240.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 4: ALL, 640.00 ACRES; SECTION 9: W1/2, 320.00 ACRES; SECTION 16: NWI/4, 160.00 ACRES; SECTION 17: ALL, 640.00 ACRES; SECTION 20: N 1/2, SWI/4, 480.00 ACRES. PERTAINS TO LAND BELOW THE GRAYLING GAS
Page 1 of 27
QLS NO.
816472
LEASE
No.
17594
LESSOR! GRANTOR
STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS
LESSOR INT %
100.00
LEGAL DESCRIPTION
TRADING BAY UNIT, TRACT 3 1.9 N., R. 13W., SEWARD MERIDIAN, ALASKA
As TO A 46.80000% WORKING INTEREST IN 4,956.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A SECTION 16: ALL, 640.00 ACRES; SECTION 17: 51/2, NEI/4, 480.00 ACRES; SECTION 20: ALL, 640.00 ACRES; SECTION 21: ALL, 640.00 ACRES; SECTION 29: ALL, 640.00 ACRES: SECTION 30: ALL, 637.00 ACRES; SECTION 31: ALL, 639.00 ACRES; SECTION 32: ALL, 640.00 ACRES; PERTAINS TO LAND BELOW 10,600 FEET, BELOW THE GRAYLING GAS SANDS. As TO A 46.80000% WORKING INTEREST IN 2,396.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT I SECTION 16: W1/2, NEI/4, 480.00 ACRES; SECTION 17: SI /2, NEI /4,480.00 ACRES: SECTION 20: W1/2, NEI/4480.00 ACRES; SECTION 30: ALL, 637.00 ACRES; SECTION 31: W1/2, 319.00 ACRES; PERTAINS TO LAND WITHIN THE TRADING BAY UNIT TRACT 3 AND FROM THE SURFACE DOWN TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGPAPHIC EQUIVALENT.
As TO A 50.00000% WORKING INTEREST IN 2,396.00 ACRES, MORE OR LESS, AND AS DESCRIBED AS FOLLOWS: SEGMENT B SECTION 16: W1/2, NEI/4, 460.00 ACRES; SECTION 17: SI/2, NEI/4, 480.00 ACRES; SECTION 20: W1/2, NEI/4, 480.00 ACRES; Page 2 of 27
QLS NO.
LEASE No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
SECTION SECTION
PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816479
17602
2/1/1962
100.00
12.50
640.00
46.8%
817105
18716
9/1/1962
100.00
12.50
462.50
46.8%
Page 3 of 27
QLS NO.
LEASE
No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR
INT
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD OR ITS STRATIGRAPHIC EQUIVALENT IN THE TRADING BAY UNIT K-2 WELL. AS TO A 46.80% WORKING INTEREST IN 462.50 ACRES MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT C SECTION 19: N1/2, SEI!4,462.50AcRES; PERTAINS TO LAND BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. 816473 18729 STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS 10/1/1962 ANCHORAGE BK 3441 PG 439 100.00 12.50 3,085.00 VARIES
As TO A 46.80000% WORKING INTEREST IN 1,365.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 2 SECTION 7: W1/2, SEI!4, 442.00 ACRES; SECTION 8: S1/2, 320.00 ACRES; SECTION 18: ALL, 603.00 ACRES; PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRA11GRAPHIC EQUIVALENT.
Page 4 of 27
QLS NO.
LEASE
No.
LESSOR I GRANTOR
EFFECTIVE DATE
RECORDING
DISTRICT BKIPG
LESSOR INT %
ROY INT %
TOTAL
ACRES
WORKING INTEREST %
LEGAL DESCRIPTION
7: W1/2, SEII4, 442.00 ACRES; 8: S1/2,320.00 ACRES; 18: ALL, 603.00 ACRES;
PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816474
18730
10/1/1962
100.00
12.50
2,880.00
VARIES
As TO A 46.80000% WORKING INTEREST IN 2,880.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT A SECTION SECTION SECTION SECTION SECTION
26: W112, 320.00 ACRES; 27: ALL, 640.00 ACRES; 28: ALL, 640.00 ACRES; 33: ALL, 640,00 ACRES; 34: ALL, 640.00 ACRES.
PERTAINS TO LAND BELOW 10,600 FEET, BELOW THE GRAYLING GAS SANDS.
As TO A 46.80000% WORKING INTEREST IN 1,120.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS:
SEGMENT SECTION SECTION SECTION
26: W1/2, 320.00 ACRES; 27: E1/2, 320.00 ACRES; 34: E1/2, SWII4, 480.00 ACRES;;
PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2
Page 5 of 27
QLS NO.
LEASE
LESSOR /
GRANTOR
No.
EFFECTIVE DATE
RECORDING DISTRICT
LESSOR INT %
INT
ROY %
TOTAL
ACRES
WORKING INTEREST
LEGAL DESCRIPTION
BK/PG
WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 50.00000% WORKING INTEREST IN 1,120.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 26: W1/2, 320.00 ACRES; SECTiON 27: E112, 320.00 ACRES; SECTION 34: E1/2, SWI!4, 480.00 ACRES;; PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
816475
18731
10/111962
100.00
12.50
3,840.00
VARIES
As TO A 46.80000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 1, PORTION WITHIN TRADING BAY UNIT SECTION 8: S1/2SEI/4, NEI /4SEI /4,120 ACRES; SECTION 9: SEI/4SE114,W1/2SWI/4I2OACRES; SECTION 10: SW1/4NEI/4, SEI/4NWI/4, SWI/4, W1/2SE1/4, 320 ACRES; PERTAINS TO LAND FROM THE SURFACE DOWN TO THE TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. As TO A 50.0000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A, PORTION WITHIN TRADING BAY UNIT SECTION 8: SI /2SEI/4, NEI/4SEI14,120 ACRES; SECTION 9: SEI/4SE114, W1/2SWI/4, 120 ACRES; SECTION 10: SWI/4NEI/4, SEI/4NWI/4, SWIM, WI12 SEI/4, 320 ACRES; PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND
Page 6 of 27
QLS NO.
LEASE
No.
LESSOR / GRANTOR
EFFECTIVE DATE
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 46.80000% WORKING INTEREST IN 560.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B, PORTION WITHIN TRADING BAY UNIT SECTION 8: S1/2SEI/4, NEII4SEII4, 120 ACRES; SECTION 9: SEI/4SE114, W1/2SWI/4, 120 ACRES; SECTION 10: SWI/4NE114, SEI/4NWI/4, SWI/4, W1/2SEI/4, 320 ACRES; PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. TRADING BAY FIELD T. 9 N., R. 13W., SARD MERIDIAN, ALASKA As TO A 46.80000% WORKING INTEREST IN 3,280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 1, PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES; SECTION 4: ALL; 640.00 ACRES; SECTION 5: ALL; 640.00 ACRES; SECTION 8: N1/2, SWI/4, NWI/4SEI/4; 520.00 ACRES; SECTION 9: N1/2, E1/2SWI/4, W1/2SEI/4, NEI/4SEI/4; 520.00 ACRES SECTION 10: N1/2N1/2, SWI/4NWI/4, SEII4NEII4, E1/2SEI/4; 320.00 ACRES PERTAINS TO LAND FROM THE SURFACE TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. AS TO A 50.00000% WORKING INTEREST IN 3,280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: PORTION OF SEGMENT A. PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES;
rage
(OT(
QLS NO.
LEASE
No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR
ROY
INT %
INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
SECTION 4: ALL; 640.00 ACRES; SECTION 5: ALL; 640.00 ACRES; SECTION 8: N1/2, SWII/4, NWI/4SEI/4; 520.00 ACRES; SECTION 9: N1/2, E1/25W1/4, W1/2SEI/4, NEII4SEI/4; 520.00 ACRES SECTION 10: N1/2N1/2, SWI/4NWI/4, SEI/4NEI/4, EII2SEI/4; 320.00 ACRES PERTAINS TO THE INTERVAL KNOWN AS THE GRAYLING GAS SANDS LOCATED BETWEEN 1,780 FEET MD AND 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 46.80000% WORKING INTEREST IN 3,280.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B, PORTION WITHIN TRADING BAY FIELD SECTION 3: ALL, 640.00 ACRES; SECTION 4: ALL; 640.00 ACRES; SECTION 5: ALL; 840.00 ACRES; SECTION 8: N1/2, SWI/4, NWI/4SEI/4; 520.00 ACRES; SECTION 9: N112, E1/2SWI/4, W1/2SEI/4, NEI/4SEI/4; 520.00 ACRES SECTION 10: N1/2N1/2, SWI/4NW1/4, SEI/4NEI/4, E1/2SEI/4; 320.00 ACRES PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. 817108 18758 STATE OF ALASKA, DNR, DIVISION OF OIL AND GAS 9/1/1962 ANCHORAGE BK 3441 PG 384 100.00 12.50 480.00 46.8% TRADING BAY UNIT, TRACT 13 1.9 N., R. 14W., SEWARD MERIDIAN, ALASKA
AS TO A 46.80000% WORKING INTEREST IN 480.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT 3 SECTION 25: E112, 320.00 ACRES; SECTION 36: NEI/4, 160.00 ACRES;
Page 8 of 27
QLS NO.
LEASE No.
LESSOR!
GRANTOR
EFFECTIVE DATE
RECORDING DISTRICT
LESSOR INT %
ROY INT %
TOTAL ACRES
WORKING INTEREST
LEGAL DESCRIPTION
Bk! PG
PERTAINS TO LAND FROM THE SURFACE DOWN TO THE TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT. As TO A 46.80000% WORKING INTEREST IN 480.00 ACRES, MORE OR LESS, AS DESCRIBED AS FOLLOWS: SEGMENT B SECTION 25: E1/2, 320.00 ACRES; SECTION 36: NEII4, 160.00 ACRES; PERTAINS TO LAND BELOW THE GRAYLING GAS SANDS OR BELOW 10,128 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR THE STRATIGRAPHIC EQUIVALENT.
817107
18772
9/1/1962
100.00
12.50
1,1600.00
46.8%
817108
18777
9/111962
100.00
12.50
796.00
VARIES
Page 9 of 27
QLS
LEASE
LESSOR!
EFFECTIVE
RECORDING
LESSOR
ROY
NO.
No.
GRANTOR
TOTAL
WORKING
DATE
DISTRICT BK/PG
tNT %
tNT %
LEGAL DESCRIPTION
ACRES
INTEREST TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A 50.00000% WORKING INTEREST IN 796.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT A SECTION 18: SEII4, 160.00AcREs; SECTION 19: ALL, 636.00 ACRES; PERTAINS TO THE GRAYLING GAS SANDS DEFINED AS THE INTERVAL IN THE TRADING BAY UNIT K-2 WELL BETWEEN THE MEASURED DEPTHS OF 1,780 FEET AND 10,128 FEET OR ITS STRATIGRAPHIC EQUIVALENT, As TO A 46.800000% WORKING INTEREST IN 796.00 ACRES, MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 18: SEI/4, 160.00 ACRES: SECTION 19: ALL, 636.00 ACRES; PERTAINING TO ALL DEPTHS BELOW THE GRAYLING GAS SANDS OR BELOW 10,125 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
817109
21068
7/1/1963
100.00
12.50
160.00
46.8%
TRADING BAY UNIT, TRACT 18 T. 9 R. 14W., SEWARD MERIDIAN, ALASKA As TO A 46.80% WORKING INTEREST IN 160.00 ACRES MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT I SECTION 24: SEII4, 160.00 ACRES; PERTAINS TO LAND FROM THE SURFACE TO THE TOP OF THE GRAYLING GAS SANDS OR TO A DEPTH OF 1,780 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT. As TO A46.80% WORKING INTEREST IN 160.00
Page 10 of 27
QLS
LEASE
LESSOR!
EFFECTIVE
RECORDING
LESSOR
ROY
TOTAL
WORKING
LEGAL DESCRIPTION
NO.
No.
GRANTOR
DATE
DISTRICT BK/PG
INT %
INT %
ACRES
INTEREST ACRES MORE OR LESS, AND DESCRIBED AS FOLLOWS: SEGMENT B SECTION 24: SEII4, 160.00 ACRES; PERTAINS TO ALL DEPTHS BELOW THE GRAYLING GAS SANDS OR BELOW 10,125 FEET MD IN THE TRADING BAY UNIT K-2 WELL OR ITS STRATIGRAPHIC EQUIVALENT.
Page 11 of 27
TRADING BAY UNIT AND TRADING BAY FIELD RIGHTS OF WAY QLS NO. 793983 LEASE No. 220602 GRANTOR EFFECTIVE DATE 1/1/1994 RECORDING DISTRICT BK/PG ANCHORAGE BK 2574 PG 560 LESSOR INT % 100.00 TOTAL ACRES 12.1 WORKING INTEREST % 100.0% LEGAL DESCRIPTION
A PRIVATE NON-EXCLUSIVE RIGHT-OF-WAY FOR A PORTION OF AN AIRCRAFT LANDING STRIP ON STATE LAND FOR YEARLONG USE, RUNNING APPROXIMATELY 1320 FEET IN LENGTH AND EXTENDING APPROXIMATELY 400 FEET IN WIDTH. OCCUPYING 12.1 ACRES. T9N, RI 4W, SM, AK, SECTION 32 A PARCEL OF LAND DESCRIBED AS FOLLOWS: T9N, RI4W, SM, AK, SECTION 32: COMMENCING AT THE U.S. B. L. M. MONUMENT MARKING THE SECTION CORNER COMMON TO SECTIONS 5 AND 6, ON THE TOWNSHIP LINE OF TOWNSHIP 8 AND 9 NORTH, RANGE 14 WEST, SM, PROCEED SOUTH 89 DEGREES 4158" WEST ALONG THE TOWNSHIP LINE OF TOWNSHIP 8 AND 9 NORTH, RANGE 14 WEST, SM, A DISTANCE OF 1,839.68 FEET TO A COPPERWELD MONUMENT AND THE "TRUE POINT OF BEGINNING OF THIS LEGAL DESCRIPTION." THENCE PROCEED ALONG THE TOWNSHIP LINE BETWEEN T8 AND 9N, RI4W, SM, N 89 DEGREES 4158" E A DISTANCE OF 145 FEET TO A POINT; THENCE N 01 DEGREES 07 1 42W A DISTANCE OF 1320 FEET TO A POINT; THENCE S 88 DEGREES 5218"W A DISTANCE OF 400 FEET TO A POINT; THENCE S 0 DEGREES 0742" E A DISTANCE OF 1,314.22 FEET TO A POINT ON THE TOWNSHIP LINE 8 AND 9N, RI4W, SM; THENCE N 89 DEGREES 4158" E A DISTANCE OF 255.04 FEET TO THE TRUE POINT OF BEGINNING OF THIS LEGAL DESCRIPTION." PURPOSE: MAINTAINING A PORTION OF THE AIRSTRIP
794400
42914
12131/1967
NONE
100.00
NA
CONTRACTUAL 46.8% WI
WELLS FOR WATER RIGHTS IS LOCATED ON FOLLOWING PROPERTY - FEE PROPERTY: T8N, RI4W, SM, AK SECTION 05: PORTION OF FRACTIONAL NW/4 THIS WATER RIGHTS CERTIFICATION CARRIES NO SURFACE ACREAGE THIS IS A PERMIT TO APPROPRIATE WATER.
794848
NA
1/1/2000
NONE
100.00
6.05
50.0% CONTRACTUAL
T8N, R14W, SM, AK SECTION 6: A PARCEL OF LAND LYING WITHIN THE SE/4 OF SECTION
Page 12 of 27
QLS NO.
LEASE No.
GRANTOR INC
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
LEGAL DESCRIPTION 06, T8N, RI4W, SM ALASKA AND DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SECTION 06, T8N, RI4W, SM, AS SHOWN ON THAT SURVEY OF STATE LANDS ADL 37596, THENCE N 89 DEGREES 57 58" E, A DISTANCE OF 605 FEET TO A POINT AND BEING THE TRUE POINT OF BEGINNING; THENCE S 04 DEGREES 57 42 E A DISTANCE OF 720.00 FEET; THENCE N 85 DEGREES 02 18" E, A DISTANCE OF 400.00 FEET TO A POINT; THENCE N 04 DEGREES 5742" W 685.20 FEET, MORE OR LESS, TO THE S LINE OF THE NE/4 SECTION 06, T8N, R14W, SM; THENCE S 89 DEGREES 57 58" W ALONG THE S LINE OF NE/4 OF SAID SECTION 06, A DISTANCE OF 401.50 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.CONTAINING 6.05 ACRES, MORE OR LESS. PURPOSE: THE SOUTHERN PORTION OF THE AIRSTRIP ATTBPF
Page 13 of 27
LEGAL DESCRIPTION T8N, RI4W; T9N, R13W; AND T9N, RI4W, SM, AK RIGHT-OF-WAY 150 FEET IN WIDTH ON EITHER SIDE OF THE CENTERLINE AND 8.9 MILES IN LENGTH ON TIDE AND SUBMERGED LANDS LYING SEAWARD OF THE MEAN HIGH TIDE LINE IN TRADING BAY LOCATED WITHIN SECTIONS 4 AND 5, TOWNSHIP 8 NORTH, RANGE 14 WEST; SECTIONS 4,8, 9, 17, 18 AND 19, TOWNSHIP 9 NORTH, RANGE 13 WEST; AND SECTIONS 24, 25, 26, 33, 34 AND 35, TOWNSHIP 9 NORTH, RANGE 14 WEST, SEWARD MERIDIAN, CONTAINING APPROX. 326.5 ACRES. SEE BELOW FOR DETAILED METES AND BOUNDS DESCRIPTION. PURPOSE: MONOPOD PIPELINE TO TBPF METES AND BOUNDS DESCRIPTION: A 300 FOOT SUB-SEA FLOWLINE RIGHT OF WAY LOCATED IN TRADING BAY WITHIN PROTRACTED T8N, RI4W; T9N, RI3W; AND T9N, RI4W; SM WITHIN THE KENAI PENINSULA BOROUGH AND BEING 150 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT A POINT ON THE UNION OIL COMPANY TRADING BAY PLATFORM, ALASKA STATE PLANE COORDINATES, ZONE 4, X218,871, Y2,523,126; THENCE, BY METES AND BOUNDS COMPUTED FROM ALASKA STATE PLANE COORDINATE SYSTEM, ZONE 4; N. 40 DEGREES 3506" W, FOR A DISTANCE OF 129.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE, S. 49 DEGREES 2454" W., FOR A DISTANCE OF 1,637.86 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT, HAVING A RADIUS OF 1200.00 FEET, A CENTRAL ANGLE OF 12 DEGREES 55 23", AND AN ARC LENGTH OF 270.66 FEET TO THE POINT OF TANGENCY; THENCE, S. 36 DEGREES 29 31" W., FOR A DISTANCE OF 181.91 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 1200.00 FEET, A CENTRAL ANGLE OF 12 DEGREES 56 01", AND AN ARC LENGTH OF 271.17 FEET TO THE POINT OF TANGENCY; THENCE, S.49 DEGREES 2622"W., FOR A DISTANCE OF 4,354.96 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF I DEGREE 4457", AND AN ARC LENGTH OF 152.64 FEET, TO THE POINT OF TANGENCY; THENCE, S. 51 DEGREES 11 19" W., FOR A DISTANCE OF 646.89 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF
Page 14 Of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 4306", AND AN ARC LENGTH OF 324.49 FEET, TO THE POINT OF TANGENCY; THENCE, S. 47 DEGREES 2813" W., FOR A DISTANCE OF 480.37 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 56 51", AND AN ARC LENGTH OF 519.02 FEET TO A POINT OF TANGENCY; THENCE, S. 53 DEGREES 2504" W., FOR A DISTANCE OF 309.28 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 13 19", AND AN ARC LENGTH OF 455.70 FEET, TO THE POINT OF TANGENCY; THENCE, S. 48 DEGREES 1145" W., FOR A DISTANCE OF 1,792.55 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 1 DEGREE 39 18, AND AN ARC LENGTH OF 144.43 FEET, TO THE POINT OF TANGENCY; THENCE, S.49 DEGREES 5113 W., FOR A DISTANCE OF 7,680.47 FEET TO A POINT OF CURVATURE; THENCE, SOUTHWESTERLY ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 21 50, AND AN ARC LENGTH OF 206.29 FEET TO THE POINT OF TANGENCY; THENCE, S. 52 DEGREES 1303" W., FOR A DISTANCE OF 372.37 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 4737", AND AN ARC LENGTH OF 680.12 FEET TO THE POINT OF TANGENCY; THENCE, S. 44 DEGREES 2526" W., FOR A DISTANCE OF 88.88 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 6 DEGREES 11 47, AND AN cularly described as follows: Beginning at U.S.L.M. 4566, U.S.L.M. 4566, identical with U.S.B.L.M. 665 (G106), a 6), a Copperweld Monument, Latitude 60 0 09 15.8 THENCE, THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF I DEGREE 10 56", AND AN ARC LENGTH OF 103.17 FEET TO THE POINT OF TANGENCY; THENCE, S. 46 DEGREES 26 17" W., FOR A DISTANCE OF 3,505.95 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 3441 ", AND AN ARC LENGTH OF 158.71 FEET TO THE POINT OF TANGENCY; THENCE, S. 57 DEGREES 0058" W., FOR A DISTANCE OF 65.15 FEET TO A POINT OF CURVATURE; THENCE ALONG A CURVE TO THE
Page 15 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION LEFT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 20 DEGREES 21 12", AND AN ARC LENGTH OF 426.28 FEET TO THE POINT OF TANGENCY; THENCE, S. 36 DEGREES 3946 -W., FOR A DISTANCE OF 29.98 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 13 DEGREES 17 29", AND AN ARC LENGTH OF 278.37 FEET TO THE POINT OF TANGENCY; THENCE S.49 DEGREES 5715" W., FOR A DISTANCE OF 3,665.57 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 47 49", AND AN ARC LENGTH OF 331.35 FEET TO THE POINT OF TANGENCY; THENCE, S. 46 DEGREES 0926" W., FOR A DISTANCE OF 199.63 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 3944", AND AN ARC LENGTH OF 668.65 FEET TO THE POINT OF TANGENCY; THENCE,S. 53 DEGREES 4910" W., FOR A DISTANCE OF 907.42 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 9 DEGREES 5700", AND AN ARC LENGTH OF 208.39 FEET, TO THE POINT OF TANGENCY; THENCE, S. 43 DEGREES 5210" W., FOR A DISTANCE OF 68.67 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 5 DEGREES 5256", AND AN ARC LENGTH OF 513.32 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 45 06" W., FOR A DISTANCE OF 2,490.22 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF I DEGREE 35 57", AND AN ARC LENGTH OF 139.55 FEET TO THE POINT OF TANGENCY; THENCE, S. 48 DEGREES 0909" W., FOR A DISTANCE OF 862.92 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 24 56", AND AN ARC LENGTH OF 298.06 FEET TO THE POINT OF TANGENCY, THENCE, S. 51 DEGREES 34 05" W., FOR A DISTANCE OF 464.03 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 10,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 0823", AND AN ARC LENGTH OF 373.45 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 2542" W., FOR A DISTANCE OF 2,384.33 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A
Page 16 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 37 50", AND AN ARC LENGTH OF 316.83 FEET TO THE POINT OF TANGENCY; THENCE, S. 53 DEGREES 0332" W., FOR A DISTANCE OF 380.35 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 6 DEGREES 0134", AND AN ARC LENGTH OF 525.88 FEET TO THE POINT OF TANGENCY; THENCE, S. 47 DEGREES 0158" W., FOR A DISTANCE OF 593.02 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 3 DEGREES 4043", AND AN ARC LENGTH OF 320.02 FEET TO THE POINT OF TANGENCY; THENCE, S. 50 DEGREES 4141" W., FOR A DISTANCE OF 219.31 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 2,000.00 FEET, A CENTRAL ANGLE OF 7 DEGREES 37 13", AND AN ARC LENGTH OF 266.00 FEET TO THE POINT OF TANGENCY; THENCE, S. 43 DEGREES 0428" W., FOR A DISTANCE OF 192.56 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 3,000.00 FEET, A CENTRAL ANGLE OF 9 DEGREES 14 17", AND AN ARC LENGTH OF 483.70 FEET, TO THE POINT OF TANGENCY; THENCE, S. 52 DEGREES 1854"W., FOR A DISTANCE OF 534.20 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 5,000.00 FEET, A CENTRAL ANGLE OF 2 DEGREES 4915, AND AN ARC LENGTH OF 246.16 FEET TO THE POINT OF TANGENCY; THENCE, S. 49 DEGREES 2939" W., FOR A DISTANCE OF 1,021.99 FEET TO A POINT OF CURVATURE; THENCE, ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 1,200.00 FEET, A CENTRAL ANGLE OF 43 DEGREES 39 58", AND AN ARC LENGTH OF 914.54 FEET, TO THE POINT OF TANGENCY; THENCE, N. 86 DEGREES 5023 W., FOR A DISTANCE OF 1,342.55 FEET TO A POINT ON THE LINE OF MEAN HIGH TIDE, ALASKA STATE PLAN COORDINATE, ZONE 4, X=1 82,346; Y=2,493,695, BEING THE END POINT OF PREVIOUSLY DESCRIBED CENTERLINE. CONTAINING 326.50 ACRES, MORE OR LESS.
793985
224467
2/16/1990
100.00
28.95
Page 17 of 27
QLS NO.
[EFFECTIVE DATE
RECORDING DISTRICT BK / PG
LESSOR
INT %
LEGAL DESCRIPTION
APPROXIMATELY 28.95 ACRES AND CONTAINING ONE 16 INCH OUTFALL PIPELINE. WIThIN: SECTION(S) 793929 32916 7/22/1996 ANCHORAGE MISC BK 167 PG 462 TOWNSHIP RANGE MERIDIAN
100.0
210.0
3, 4, 5 8 NORTH 14 WEST SEWARD A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH - EXTENDING 50 FEET ON 50% EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL CONTRACTUAL PERMIT - OCCUPYING APPROXIMATELY 71.51 ACRES AND CONTAINING 46.8% WI TWO 10-INCH OIL AND GAS PIPELINES.
Wm.ITM
3 , 4, 5
29, 31,32 35,36
_, 9 NORTH
PURPOSE: PIPELINE ROW FROM TBPF TO GRAYLING PLATFORM MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT W.C.M.C. NO.2 OF U.S. SURVEY NO. 4520, A U.S. B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 4855.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S 32 DEGREES 3837.4" E., 708.79 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT. BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, S73 DEGREES 24 23" E., 1,000.00 FEET TO PT. #A. ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE SOUTH 73 DEGREES 23 49.4" E., 957.03 FEET TO PT. #B; THENCE, SOUTH 79 DEGREES 1446.6" E., 405.63 FEET TO PT. #0; THENCE, N
Page 18 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION 78 DEGREES 0555.5" E., 472.69 FEET TO PT. #D; THENCE, S. 86 DEGREES 1202.5" E., 537.32 FEET TO PT. #E; THENCE, N73 DEGREES 05 19.9 E., 240.67 FEET TO PT. #F; THENCE, N 49 DEGREES 5321.1" E. 132.30 FEET TO PT #G; THENCE, N 79 DEGREES 01 14.6 E., 611.41 FEET TO PT. #H; THENCE, N 38 DEGREES 3034.0" E., 183.19 FEET TO P #1; THENCE, N 73 DEGREES 4052.4" E., 1,400.62 FEET TO PT. #J; THENCE, N 70 DEGREES 1804.2 E., 1,200,37 FEET TO PT. #K; THENCE, N 75 DEGREES 51 09.1" E, 604.82 FEET TO PT. #L; THENCE, N 68 DEGREES 1929.2" E, 599.57 FEET TO PT. #M; THENCE, N 88 DEGREES 0753.4" E., 192.87 FEET TO PT. #N;
THENCE, N 67 DEGREES 57 21.3" E., 225.42 FEET TO PT #0; THENCE, N 70 DEGREES 5027.7" E., 432.57 FEET TO PT. #P; THENCE, N 68 DEGREES 3156.7" E., 1,000.88 FEET TO PT. #Q; THENCE, N 72 DEGREES 4831.2" E., 794.55 FEET TO PT. #R; THENCE, N 71 DEGREES 1436.9" E., 2,806.91 FEET TO PT. #S; THENCE, N 75 DEGREES 0921.6" E., 612.04 FEET TO PT. #T; THENCE, N. 57 DEGREES 34 40.3 E., 200.94 FEET TO PT. #U; THENCE, N 78 DEGREES 34 15.5" E., 397.16 FEET TO PT. #V; THENCE, N 71 DEGREES 5847.5" E., 2,177.39 FEET TO PT. #W; THENCE, N 66 DEGREES 1646.1 - E., 205.28 FEET TO PT. #X; THENCE, N 69 DEGREES 46 01.6" E., 396.48 FEET TO PT. #Y; THENCE, N 73 DEGREES 3150.3" E., 607.93 FEET TO PT. #Z; THENCE, N 61 DEGREES 3017.9" E., 427.60 FEET TO PT. #M; THENCE, N 73 DEGREES 5357.2" E., 794.64 FEET TO PT. #BB; THENCE, N 76 DEGREES 4049.2" E., 598.91 FEET TO PT. #CC; THENCE, N 70 DEGREES 0826.0" E., 995.74 FEET TO PT. #DD; THENCE, N 73 DEGREES 15 03.2" E., 1,229.21 FEET TO PT. #EE; THENCE, N 70 DEGREES 1943.5" E., 1,082.26 FEET TOPT. #FF; THENCE, N 71 DEGREES 1541.9" E., 1,802.51 FEET TO PT. #GG; THENCE, N. 72 DEGREES 48 24.6" E., 1,398.92 FEET TO PT. #HH; THENCE, N 67 DEGREES 5045.2" E., 897.94 FEET TO PT. #11; THENCE, N 71 DEGREES 3907.3" E., 379.73 FEET TO PT. #JJ; THENCE, N 79 DEGREES 56 11.5" E., 392,75 FEET TO PT. #KK; THENCE, N 70 DEGREES 5901.5" E., 611.56 FEET TO PT. #LL; THENCE, N 66 DEGREES 0839.2" E., 376.75 FEET TO PT. #MM; THENCE, N 71 DEGREES 45 30.4" E., 603.93 FEET TO PT. #NN; THENCE, N 50 DEGREES 30 16.2" E., 592.48 FEET TO PT. #00; THENCE, N 35 DEGREES 3722.4" E., 872.74 FEET TO PT. #PP; THENCE, N 21 DEGREES 0612.5" E., 593.89 FEET TO THE GRAYLING PLATFORM AND END OF SAID RIGHT-OF-WAY, Page 19 of 27
QLS
NO.
LEASE
No.
GRANTOR
EFFECTIVE DATE
LESSOR
INT %
TOTAL WORKING ACRES INTEREST % 100.0% CONTRACTUAL INTEREST A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH EXTENDING 50 FEET ON EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL PERMIT- RUNNING 28,576.59 FEET IN LENGTH AND OCCUPYING APPROXIMATELY 63.52 ACRES AND CONTAINING TWO 8 -INCH OIL PIPELINES AND A 4-INCH GAS PIPELINE.
-
46.8%
WITHIN:
SECTION(S) 6 1, 2, 3, 4,5
ITOWNSHIP 8 NORTH
18 NORTH
PURPOSE: THREE PIPELINES FROM THE DOLLY VARDEN PLATFORM TO TBPF MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT W.C.M.C. NO.2 OF U.S. SURVEY NO. 4520, A U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 48 55.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S31 DEGREES 10E., 718.74 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT. BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, 865 DEGREES 1738" E 1,000.00 FEET TO PT. #1. ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE S 65 DEGREES 1738" E., 902.11 FEET TO PT. #2; THENCE, S 67 DEGREES 51 13" E., 283.44 FEET TO PT. #10; THENCE, S 86 DEGREES 0442" E., 368.41 FEET TO PT. #20; THENCE, N 88 DEGREES 19 53" E., 379.01 FEET TO PT. #30; THENCE, N 82 DEGREES 1306" E., 1,408.71 FEET TO PT. #68; THENCE, N 85 DEGREES 1448" E., 1,868.94 FEET TO PT. #120; THENCE, Page 20 of 27
[EFFECTIVE DATE
RECORDING
DISTRICT
WORKING
INTEREST %
LEGAL DESCRIPTION
N 84 DEGREES 0205" E., 6,331.66 FEET TO PT. #593; THENCE, N 84 DEGREES 35 53" E., 1,979.90 FEET TO PT. #540; THENCE, N 82 DEGREES 5621 " E., 1,726.44 FEET TO PT. #493; THENCE, N 86 DEGREES 5034" E., 736.87 FEET TO PT. #473; THENCE, N 83 DEGREES 3027" E., 1,780.01 FEET TO PT. #425; THENCE, N 89 DEGREES 3451 " E., 934.45 FEET TO PT. #400; THENCE, N 83 DEGREES 1036" E., 751.15 FEET TO PT. #380; THENCE, N 79 DEGREES 45 02" E., 1,669.83 FEET TO PT. #334; THENCE, N 86 DEGREES 4958" E., 1,125.32 FEET TO PT. #303; THENCE, S 80 DEGREES 2823" E., 543.98 FEET TO PT. #288; THENCE, S 71 DEGREES 1734" E., 633.05 FEET TO PT. #272; THENCE, S27 DEGREES 0332" E., 171.37 FEET TO PT. #267; THENCE, S 74 DEGREES 3043" E., 157.61 FEET TO PT. #264; THENCE, S 32 DEGREES 4936" E., 504.46 FEET TO PT. #250; THENCE, S 06 DEGREES 2605" E., 363.03 FEET TO PT. #240; THENCE, S 07 DEGREES 2924" W., 541.30 FEET TO PT. #225; THENCE, S 08 DEGREES 2705" E., 184.64 FEET TO PT. #220; THENCE, S 17 DEGREES 1243" E., 739.53 FEET TO PT. #200; THENCE, S55 DEGREES 21 32" E., 372.29 FEET TO PT. #190; THENCE, S 62 DEGREES 4116" E., 381.65 FEET TO PT. #180; THENCE, 868 DEGREES 4722" E., 737.43 FEET TO THE DOLLY VARDEN PLATFORM AND END OF SAID RIGHT-OF-WAY, CONTAINING 63.52 ACRES, MORE OR LESS.
I 82.51 I 100.0%
I I I
I I
A PRIVATE RIGHT-OF-WAY 100 FEET IN WIDTH - EXTENDING 50 FEET ON EITHER SIDE OF THE CENTERLINE EXCEPT AS DESCRIBED IN THE ORIGINAL PERMIT RUNNING 36,840.78 FEET IN LENGTH AND OCCUPYING APPROXIMATELY 82.51 ACRES AND CONTAINING TWO 8.625-INCH OIL AND GAS PIPELINES. SECTION(S) TOWNSHIP 8 NORTH 9NoRm 9 NORTH RANGE 14 WEST I3WEST 14 WEST MERIDIAN SEWARD SEWARD SEWARD
4,5
17,19,20,30 25,26,34, 35
PURPOSE: PIPELINES FROM KING SALMON PLATFORM TOTBPF MORE PARTICULARLY DESCRIBED AS FOLLOWS: Page 21 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
LEGAL DESCRIPTION U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT, LATITUDE 60 DEGREES 4855.42", LONGITUDE 151 DEGREES 4652.93"; THENCE, ALONG TRUE BEARINGS AND DISTANCES S 32 DEGREES 47 10.9" E. 698.16 FEET TO THE INTERSECTION OF THIS LINE AND THE 1963 MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, SAID INTERSECTION BEING THE TRUE POINT OF BEGINNING. ALL THAT PORTION OF LAND LYING 5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT, BEGINNING AT SAID INTERSECTION POINT, SAID POINT BEING THE INTERSECTION OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE WITH THE MEAN HIGH TIDE MARK OF COOK INLET, ALASKA, AND THE TRUE POINT OF BEGINNING; THENCE, $82 DEGREES 1924.1" E, 1,000.00 FEET TO PT. #A ALL THAT PORTION OF LAND LYING 50 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED AS-BUILT PIPELINE ALIGNMENT; THENCE CONTINUE S 82 DEGREES 197.2" E, 710.05 FEET TO PT. #8; THENCE, 581 DEGREES 535.0" E, 463.91 FEET TO PT. #C; THENCE, N 89 DEGREES 3630.8" E, 179.13 FEET TO PT. #D; THENCE, N 75 DEGREES 935.6" E, 169.77 FEET TO PT. #E; THENCE, N 57 DEGREES 542.1" E, 166.63 FEET TO PT. #F; THENCE, N 60 DEGREES 28 58.3" E, 689.99 FEET TO PT. #G; THENCE, N 56 DEGREES 22 57.6" E. 803.25 FEET TO PT. #H; THENCE, N 55 DEGREES 2324.7" E, 1,590.60 FEET TO PT. #1; THENCE, N 56 DEGREES 3854.5" E. 4,178.87 FEET TO PT, #J; THENCE, N 56 DEGREES 2138.2" E, 2,078.52 FEET TO PT. #K; THENCE, N 56 DEGREES 0 , 31.3" E, 3,616.97 FEET TO PT. #L; THENCE, N 56 DEGREES 4232.8" E, 4,993.89 FEET TO PT. #M; THENCE, N 54 DEGREES 5351.0" E, 1,416.46 FEET TO PT. #N; THENCE, N 56 DEGREES 948.5" E, 709.75 FEET TO PT. #0; THENCE, N 54 DEGREES 5739.8"E 1,002.41 FEET TO PT. #P; THENCE, N 62 DEGREES 221.7" E, 628.43 FEET TO PT. #Q; THENCE, N 48 DEGREES 4022.1 " E, 425.83 FEET TO PT. #R; THENCE, N 58 DEGREES 71 17.1" E, 2,511.61 FEET TO PT. #8; THENCE, N 58 DEGREES 14 6.4" E, 3,899.65 FEET TO PT. #T; THENCE, N 60 DEGREES 13 6.2" E, 393.00 FEET TO PT. #U; THENCE, N 49 DEGREES 32 49.2" E. 330.24 FEET TO PT. #V; THENCE, N 34 DEGREES 412.1" E, 281.93 FEET TO PT. #W; THENCE, N37 DEGREES 3624.8" E, 221.28 FEET TO PT. #X; THENCE, N 35 DEGREES 5551.4" E, 378.61 FEET TO THE NORTH MCARTHUR RIVER PLATFORM A AND END OF SAID ROW, CONTAINING 82.51 ACRES, MORE OR LESS.
Page 22 of 27
NO.
No.
DATE
DISTRICT
tNT
ACRES
BK! PG
DESCRIPTION INTEREST
793984
221085
5/10/1988
100.00
47.4
100.00 A PRIVATE RIGHT-OF-WAY FOR TWO 10.75" GAS PIPELINES AND ONE 8.625" OIL PIPELINE AND THE ACREAGE ENCOMPASSING THE STEELHEAD PLATFORM, RUNNING 34,248 FEET IN LENGTH AND EXTENDING A WIDTH OF 60 FEET, EXCEPT AS SHOWN IN THE AS-BUILT SURVEY OF ADL 221085 RECORDED AS PLAT 87-118 IN THE KENAI RECORDING DISTRICT, ENCOMPASSING 47.4 ACRES. SECTION(S) TOWNSHIP 8 NORTH 9NoRm 9 NORTH RANGE MERIDIAN SEWARD SEWARD SEWARD
12 , 3 , 4 , 5
1,32,33 36
14 WEST
13 WEST
14 WEST
8164761 32549
1/23/2002 12005-01 CONTRACTUAL "KNOWN AS ATS 657: A PARCEL OF LAND LYING WITHIN PROTRACTED SECTIONS 32 AND 33, T9N, RI 4W, AND SECTION INTEREST 5, T8N, RI4W, SEWARD MERIDIAN, ALASKA, TO BE 46.8% DESIGNATED AS ATS No. 657 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT U.S.L.M. 4566, IDENTICAL WITH U.S.B.L.M. 665(3106), A COPPERWELD MONUMENT, LATITUDE 60 0915.80" N, LONGITUDE 151" 47 750 35E 66.35 FEET TO CORNER No. 09.68" W; THENCE N 1, IDENTICAL WITH U.S.S. No. 4566 M.C. No. 4, AND THE TRUE POINT OF BEGINNING; THENCE N 660 0940" E 3200.00 FEET TO CORNER No. 2; THENCE S22 15 20" E 2304.82 FEET TO CORNER No. 3; THENCE S 670 4440" W 3180.57 FEET TO CORNER No. 4, IDENTICAL WITH U.S.S. No. 4520 M.C. No.2 AND A.D.L. No. 32299 M.C. No. 4; THENCE N 220 1520" W 1556.52 FEET ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF Cook INLET, ALASKA, TO CORNER No, 5, IDENTICAL WITH U.S.S. No. 4566 M.C. No. I AND A.D.L. NO. 32299 M.C. No. 3; THENCE N 23 5020" W 659.96 FEET CONTINUING ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF Cook INLET, ALASKA, TO CORNER No. 5, IDENTICAL WITH U.S.S. No. 4566 M.C. No. I AND A.D.L. No. 32299 M.C. No. 3; THENCE N 23" 5020"W 659.96 FEET CONTINUING ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO CORNER No. 1, AND THE TRUE POINT OF BEGINNING, CONTAINING 165.2 ACRES. MORE OR LESS. AND 23 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
WORKING INTEREST %
LEGAL DESCRIPTION
ALASKA TIDELAND SURVEY (ATS) 1618 CONTAINING 5.00 ACRES, MORE OR LESS, LOCATED WITHIN SECTION 32, TOWNSHIP 9 NORTH, RANGE 14 WEST, SEWARD MERIDIAN, RECORDED IN THE ANCHORAGE RECORDING DISTRICT ON OCTOBER 24, 2002 AS PLAT 2002-132. THE TOTAL ACRES FOR BOTH ATSs IS 170.2 ACRES.
PURPOSE: TIDELAND LEASE FOR TRADING BAY PRODUCTION FACILITY AND BARGE LANDING
793933
NA
8/11/1986
BK 1487 PG 675
100.00
1.13
T8N, RI4W, SM, AK A RIGHT-OF-WAY SIXTY (60) FEET IN WIDTH, THE CENTERLINE BEING DESCRIBED AS FOLLOWS: FROM THE WC TO MC-2 OF U.S. SURVEY NO. 4520, FOUND BRASS CAP MONUMENT, PROCEED S64 DEGREES 56W, 176.24 FEET TO THE TRUE POINT OF BEGINNING AND STATION 0+00, THENCE ALONG THE CENTERLINE OF THE 60 FT. WIDE PIPELINE RIGHT-OF-WAY ON THE FOLLOWING: S 25 DEGREES 04E, 419.00 FEET TO POINT OF CURVE, THENCE ALONG A CURVE WHOSE CENTRAL ANGLE IS 56 DEGREES 00, RADIUS IS 188.07 FEET AND LENGTH IS 183.82 FEET TO END OF CURVE AND STA. 6+02.82, THENCE S81 DEGREES 04 E, 222.10 FEET TO A POINT ON THE 1963 MEAN HIGH TIDE MARK OF COOK INLET BEING STA. 8+24.92 AND END OF RIGHT-OF-WAY, CONTAINING 1.13 ACRES MORE OR LESS. JOE MOSQUITO ALLOTMENT-LOT I OF THE LAND EMBRACED IN AMENDED U.S. SURVEY 4520, ALASKA, SITUATED ON THE WESTERLY SHORE OF COOK INLET APPROXIMATELY 7 MILES NORTHWESTERLY OF WEST
Page 24 of 27
QLS NO.
LEASE No.
GRANTOR
EFFECTIVE DATE
LESSOR INT %
TOTAL ACRES
WORKING INTEREST %
TOTAL
ACRES
INTEREST
LEGAL DESCRIPTION
795165
NA
12/26/1990
ANCHORAGE BK 3066 PG 37
NA
NA
319.99
50.00
E/2 SECTION 36, T9N, RI5W, S.M., ALASKA ACCORDING TO THE ALASKA STATE CADASTRAL SURVEY PLAT, PLAT #9088, ANCHORAGE RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, CONTAINING 319.99 ACRES, MORE OR LESS. LOCATION OF THE KUSTATAN WASTE WATER DISPOSAL FACILITY T8N, RI4W, SM, AK SURVEY OF STATE LAND ADL 37596 LOCATED WITHIN FRACTIONAL NE/4, SECTION 06, T8N, RI4W, SM, ACCORDING TO PLAT NO. 74-19 FILED IN THE ANCHORAGE RECORDING OFFICE ON JANUARY 24, 1974, CONTAINING 156.67 ACRES MORE OR LESS. SUBJECT TO ADL 33333 - RIGHT OF WAY PERMIT ISSUED TO COOK INLET PIPELINE COMPANY 50 FEET IN WIDTH. THE TRADING BAY PRODUCTION FACILITY IS LOCATED ON THIS PROPERTY.
816482
NA
6/19/1974
NA
NA
156.67
50.00
823509
NA
2/26/1968
NA
NA
36.0
50.00
T8N, RI4W, SM, AK A PARCEL OF LAND LYING WITHIN THE NW/4 OF PROTRACTED SECTION 5 OF CADASTRAL SURVEY T8N, RI4W., SM ALASKA, SURVEY OF STATE LAND ADL NO. 32299 AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NW CORNER OF SECTION 05, T8N, RI4W, LATITUDE 60 DEGREES 4912.81" N., LONGITUDE 151 DEGREES 47 14.41" W., A U.S.B.L.M. CADASTRAL SURVEY BRASS CAP MONUMENT; THENCE EAST 79.48 FEET TO THE INTERSECTION OF LINE 2-3 OF U.S.S. NO. 4566, AND CORNER NO. 1, WHICH IS THE TRUE POINT OF BEGINNING; THENCE S. 23 DEGREES 5020" E., 455.05 FEET ALONG LINE 2-3 OF U.S.S. NO. 4566 TO CORNER NO. 2 IDENTICAL WITH (U.S.S. NO. 4566 CORNER NO. 2); THENCE N 66 DEGREES 10 30" E 330.00 FEET ALONG LINE
Page 25 of 27
QLS NO.
LEASE No.
LESSOR! GRANTOR
EFFECTIVE DATE
LESSOR INT%
ROY INT
%
TOTAL ACRES
INTEREST
%
LEGAL DESCRIPTION 1-2 U.S.S. NO. 4566, TO MEANDER CORNER NO. 3 IDENTICAL WITH (U.S.S. NO. 4566 M.C. NO. I); THENCE S. 22 DEGREES 15 20" E 1,556.52 FEET, ALONG THE NATURAL MEANDER OF THE LINE OF MEAN HIGH WATER OF COOK INLET, ALASKA, TO MEANDER CORNER NO.4 IDENTICAL WITH (U.S.S. NO. 4520, M.C. 2); THENCE S. 64 DEGREES 45 50" W 1,274.61 FEET, ALONG LINE 2-3 U.S.S. NO. 4520, TO CORNER NO. 5; THENCE N. 00 DEGREES 0240" W 2,266.66 FEET TO CORNER NO. 6, BEING PREVIOUSLY DESCRIBED HEREIN AS THE NW CORNER, SECTION 05, T8N, RI4W; THENCE EAST 79.48 FEET TO CORNER NO. 1, AND THE TRUE POINT OF BEGINNING. CONTAINING 36.00 ACRES, MORE OR LESS. THE TRADING BAY PRODUCTION FACILITY IS LOCATED ON THIS PROPERTY.
SUBJECT TO AND INCLUDING THE FOLLOWING (as may be supplemented and/or amended): 1. 2. 3. 4. 5. 6. 7. 8. 9. QLS 819554 -TRADING BAY UNIT JOINT OPERATING AGREEMENT, DATED FEBRUARY 27, 1967 QLS 823460 - TRADING BAY UNIT AGREEMENT, DATED FEBRUARY 6, 1967 OILS 825502 - TRADING BAY FIELD AND UNIT ALIGNMENT AGREEMENT AREA OF MUTUAL INTEREST, DATED JANUARY 1, 2002 QLS 823352 - KUSTATAN WASTEDISPOSAL FACILITY JOINT OPERATING AGREEMENT, DATED AUGUST 1, 1991 QLS 826069 - TRADING BAY COOK INLET PIPE LINE COMPANY FACILITY USE AGREEMENT, DATED JANUARY 1, 1985 QLS 833489 - AMENDED AND RESTATED TRADING BAY FACILITIES AGREEMENT, DATED SEPTEMBER 1, 2009 OILS 823468-TRADING BAY FIELD JOINT OPERATING AGREEMENT, DATED JUNE 12, 1996 OILS NA - ASSET EXCHANGE AGREEMENT UNION-PACIFIC-MARATHON FOR SLOT 10 M-32RD WELL DATED AUGUST 11, 2009 QLS 793986 - RIGHT-OF-WAY EASEMENT AGREEMENT FROM MARATHON OIL COMPANY AND UNION OIL COMPANY OF CALIFORNIA TO STEWART PETROLEUM COMPANY, DATED JUNE 1, 1993 10. QLS 825906 - GRANT OF RIGHT-OF-WAY FROM UNION OIL COMPANY OF CALIFORNIA, ET AL TO FOREST OIL 2005 11. OILS NA - FUEL GAS SUPPLY AGREEMENT BETWEEN UNION OIL COMPANY OF CALIFORNIA AS OPERATOR OF THE TRADING BAY UNIT, TRADING BAY FIELD & TRADING BAY PRODUCTION FACILITY AND FOREST OIL CORPORATION, DATED NOVEMBER 25, 2002 12. QLS 828200 - GAS BALANCING AGREEMENT, DATED SEPTEMBER 1, 1991 13. QLS NA - TERMINALING AGREEMENT, DATED EFFECTIVE MAY 23, 2011 14. QLS NA - EQUIPMENT MASTER RENTAL AGREEMENT, DATED EFFECTIVE MARCH 8, 2002 CORPORATION, DATED SEPTEMBER 29,
Page 26 of 27
15. QLS NA- OIL PROCESSING AND HANDLING AGREEMENT, DATED NOVEMBER 19, 1992 16. QLS NA - FACILITIES CONSTRUCTION AGREEMENT FOR PIPELINE AND TIE-IN FACILITIES TO CIGGS AT TRADING BAY PRODUCTION FACILITY, DATED EFFECTIVE AUGUST 1, 2005 17. QLS NA - AGREEMENT FOR CONSTRUCTION AND OPERATION OF LIQUID EXTRACTION UNIT AND COMPRESSION FACILITY, DATED NOVEMBER 15, 1968 18. QLS NA - AGREEMENT RE: FUEL GAS, DATED NOVEMBER 22, 1996 19. QLS NA - CONTEMPORANEOUS GAS EXCHANGE AGREEMENT, DATED EFFECTIVE JANUARY OCTOBER 1, 2011
21. Conveyance of Overriding Royalty Interest BY PACIFIC ENERGY ALASKA OPERATING LLC TO AND IN FAVOR OF MLQ, L.L.C, DATED August 24, 2007 effective January 1, 2007 22. Conveyance of Overriding Royalty Interest BY PACIFIC ENERGY ALASKA OPERATING LLC TO AND IN FAVOR OF SPCP GROUP ALASKA LLC, DATED and
1, 2006
20. QLS NA - LEASE EXCHANGE AGREEMENT BETWEEN COOK INLET ENERGY, LLC AND UNION OIL COMPANY OF CALIFORNIA DATED EFFECTIVE
Page 27 of 27
EXHIBIT B - FORM OF CONVEYANCE ASSIGNMENT AND BILL OF SALE This Assignment and Bill of Sale (this "Assignment") from Pacific Energy Alaska Operating LLC, a Delaware limited liability company with an address of ill West Ocean Boulevard, Suite 1240, Long Beach, CA 90802 ("Grantor"), to Hilcorp Alaska, LLC a Delaware limited liability company with an address of 3800 Centerpoint Drive, Suite 100, Anchorage, Alaska 99503 ("Grantee"), is executed on the dates set forth in the respective notary certifications below, but effective for all purposes as of 7:00 a.m. Alaskan Standard Time on 2012 (the "Effective Time"). RECITALS WHEREAS, Grantor owns certain undivided interests in and to the Assets (as defined below); and WHEREAS, pursuant to that certain Letter Agreement between Grantor and Grantee dated as of September 13, 2012 (the "Letter Agreement"), Grantor has agreed to assign to Grantee, all of Grantors right, title, and interest in and to the Assets in accordance with the terms hereof. ASSIGNMENT Section 1. Assignment. NOW THEREFORE, Grantor, for and in consideration of the sum of Ten Dollars ($10) cash in hand paid and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby GRANTS, BARGAINS, SELLS, AND CONVEYS, and by these presents has GRANTED, BARGAINED, SOLD, AND CONVEYED unto Grantee all of the right, title, and interest of Grantor in and to the following, (collectively the "Assets"): the oil, gas and/or mineral leases, subleases and top leases which are (a) described or referred to on Exhibit A hereto, together with any interest in the Lands authorizing the owner to explore for, develop and produce oil and/or gas, whether created by or under the Leases or otherwise, including, but not limited to, fee mineral interests, royalty interests, production payments, term, reversionary or conditional interests, working interests, fannout and farm-in rights, purchase or put options and preference rights, referred to separately as a "Lease" (collectively the "Leases"); the lands covered by the Leases, together with the lands and leases pooled, (b) unitized, communitized or consolidated therewith (the "Lands"); (c) all wells located on the Lands drilled for oil and/or gas, and their constituents and byproducts in whatever form, together with water wells and injection or disposal wells, whether currently drilling, producing, operating, shut-in, or temporarily abandoned (the "Wells");
(d) all rights and interests in, under or derived from all unitization or pooling agreements in effect with respect to any of the Leases or Wells and the units created thereby (the "Units"); (e) the oil, gas, casinghead gas, condensate, distillate and other liquid and gaseous hydrocarbons produced from or attributable to the Leases, Wells, Lands or Units, and the products refined and manufactured therefrom, and the accounts and proceeds from the sale or disposition thereof, to the extent produced or accrued, or held in storage on the Leases or Lands (the "Production"); (f) all surface or subsurface machinery, equipment, pipelines, flowlines, gathering lines, facilities, supplies and other property located on or under the Leases (the "Facilities"); (g) all equipment, fixtures, facilities and supplies located on the Leases and/or Lands or elsewhere, and used or held for use in connection with the ownership, operation and production of the Leases, Lands and Wells, including, but not limited to, pipelines, tanks, separators, dehydrators, compressors and other similar or related personal property (the "Equipment"); (h) the Leases, together with all other agreements as to which the Leases, Lands, and Wells are subject or bound, including pooling and unitization agreements, production purchase and sale contracts, gathering or transportation agreements, joint venture agreements, farm-ins or farm-outs, exploration agreements, joint operating agreements, tax partnership agreements, surface leases, surface use agreements, water purchase agreements, permits, rightsof-way, easements, servitudes, licenses, consents, professional services agreements, vendor agreements, and other similar contracts or agreements relating to the drilling, production or operation of the Leases, Lands and/or Wells, and the storage, treatment, transportation, processing, sale or disposal of the Production and/or water or other substances produced therewith or attributable thereto (the "Agreements"); (i) all franchises, licenses, permits, approvals, consents, certificates and other authorizations and other rights granted by any national or state government, county, municipality or other governmental subdivision thereof, or any court or any governmental department, commission, board, bureau, agency or other instrumentality of any of them and all certificates of convenience or necessity, immunities, privileges, grants, and other rights, that relate to the Assets or the ownership or operation of any thereof; all (i) accounts, instruments, and general intangibles (as such terms are (j) defined in 9.102 of the Uniform Commercial Code, as adopted in the State of Alaska) attributable to the Assets with respect to any period of time on or after the Effective Time; and (ii) liens and security interests in favor of PEAO, whether choate or inchoate, under any law, rule, or regulation or under any of the Agreements (A) arising from the ownership, operation, or sale or other disposition on or after the Effective Time of any of the Assets or (B) to the extent arising in favor of PEAO under any joint operating agreement or any other agreement in which PEAO is the operator of any Assets (the "Accounts");
(k) all geological, geophysical, geochemical or other technical data, abstracts, title reports, title opinions, leases, lease records, curative materials, reserve estimates, seismic interpretations, maps, surveys and any other materials or information in Grantors possession related to the Leases, Lands and/or Wells, whether in hard-copy or electronic form, but excluding any reports, estimates or opinions prepared solely for internal use by Grantor, and any of the foregoing which is subject to non-disclosure under the provisions of any licensing or similar agreement in effect at the Effective Time (the "Information"); and (1) all liens, encumbrances, rights and benefits of any nature or character, whether existing or created under any of the Agreements or applicable law, and which are owned by or held for the benefit of Grantor in connection with any of the Agreements and/or the Production, including but not limited to accounts, instruments and general intangibles as defined in the Uniform Commercial Code, as adopted in the State of Alaska (the "Ancillary Rights"). TO HAVE AND TO HOLD the Assets, together with all rights, titles, interests, estates, remedies, powers and privileges thereunto appertaining, unto Grantee, its successors and assigns, forever, subject, however, to the terms and conditions of this Assignment.
Section 2. Subject to Agreements. Grantee is taking the Assets subject to the terms of the Agreements, and Grantee hereby assumes and agrees to fulfill, perform, pay, and discharge Grantors obligations under such Agreements from and after the Effective Time. Section 3. Further Assurances. From and after the date hereof, Grantor, without further consideration, will use its reasonable good faith efforts to execute and deliver or cause to be executed and delivered, such good and sufficient instruments of conveyance and transfer in recordable form, and take such other action as may be reasonably required of Grantor to effectively vest in Grantee beneficial and legal title to the Assets conveyed pursuant to this Assignment and, if applicable, to put Grantee in actual possession of such Assets. After the date of this Assignment, Grantor and Grantee shall, without further consideration, execute and deliver, or cause to be executed and delivered, all instruments in recordable form, and take such actions, as may be reasonably required of Grantor or Grantee to accomplish the conveyance and transfer of the Assets, any change in operator, and otherwise consummate the transactions contemplated by this Assignment and the Letter Agreement, and shall send all required notices with respect to the Assets. Section 4. Successors and Assigns. This Assignment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. Section 5. Titles and Captions. All article or section titles or captions in this Assignment are for convenience only, shall not be deemed part of this Assignment and in no way define, limit, extend, or describe the scope or intent of any provisions hereof. Section 6. Governing Law. This Assignment and the rights of the parties hereunder shall be governed by, and construed in accordance with, the laws of the State of Alaska. Section 7. Counterparts. This Assignment may be executed in any number of counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all such counterparts shall constitute but one instrument.
Signature Page - Grantor IN WITNESS WHEREOF, the Parties hereto have executed this Assignment on the dates of the acknowledgement set forth below, to be effective, however, for all purposes, as of the Effective Time. GRANTOR: PACIFIC ENERGY ALASKA OPERATING, LLC By: Name: Gerald A. Tywoniuk Title: Authorized Representative
State of County of The foregoing instrument was acknowledged before me on by Gerald A. Tywoniuk, authorized representative of Pacific Energy Alaska Operating, LLC, a Delaware limited liability company, on its behalf.
[Seal]
GRANTEE:
HILCORP ALASKA, LLC By: Name: Jason C. Rebrook Title: Vice President State of Texas County of Harris The foregoing instrument was acknowledged before me on , by Jason C. Rebrook, Vice President of Hilcorp Alaska, LLC, a Delaware limited liability company, on behalf of said limited liability company.
[Seal]
[END OF EXHIBIT B]
EXHIBIT C
APPLICATION FOR ASSIGNMENT OF INTEREST IN OIL AND GAS LEASE STATE OF ALASKA, DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 1. 2. 3. LeasoADL#__ Assignor: Assignors address:
4. 5.
6.
percent working Interest OR percent overriding royalty interest percent working interest OR percent overriding royalty interest percent working interest AND/OR percent overriding royalty Interest
7.
8.
9.
LANDS AFFECTED by this assignment of interest (attach Exhibit Alf necessary) ,R __________ Meridian T
containing
The Notification Lessee for the purpose of receiving any and all notices from the State of Alaska In connection with the tease will be: Name Attn Address Telephone (_I City. State, Zip We, the undersigned, affirm (1) that the Information provided on this application Is true and correct and that Ills filed pursuant to 11 MC 81605 and 11 MC 82.015. and (2) that both parties to this agreement are qualified to transfer or hold an interest In oil and gas leases pursuant to 11 AAC 82.200 and 11 MC 82.205. if the assignor were to surrender this lease or this lease were to terminate, the assignor would be required to deliver up the land In good order and condition to the satisfaction of the commissioner, vAiich may include the requirements that the assignor plug and abandon aji existing welts, remove all existing surface facilities, and fill and grade all existing pits in compliance with this lease and applicable regulations (Obligations). After the effective date of this assignment, the assignee is responsible for performing the Obligations. The assignee is primarily responsible for performing the Obligations and any other work necessary to deliver up the land In good order and condition. But if the assignee falls to perform the Obligations, the assignor Is the assignees surety and Is secondarily responsible for performing the Obligations.
DCG2S-84 5EASEA mfl5O.d 3J12DIRILO-1I3
ASSIGNOR:
Authorized Signature Name & Title (Print or Type) UNITED STATES OF AMERICA STATE OF ) )SS. of
.20 , before me appeared known to me to be the person(s) named as assignor(s) or the assignors authorized representative who executed this assignment and acknowledged voluntarily signing It. THIS CERTIFIES that on the Notary Public My Commission expires:
ASSIGNEE:
Authorized Signature Name & Title (Print or Type) UNITED STATES OF AMERICA STATE OF ) )SS.
)
.20 before me appeared known to me to be the person(s) named as assignee(s) or the assignees authorized representative who executed this assignment and acknowledged voluntarily signing It. THIS CERTIFIES that on the ___________ day of Notary Public My Commission expires:
APPROVAL
W. C. Barton, Director DMsion of ON and Gas, DNR. State of Alaska Recorders Office (optional) Recording District After recording, please return to:
Yes ONO
Exhibit "A"
(Legal Description Only) ADL
Exhibit B
[PEAR Agreement]
DOCS_IA:259002.1 68773-003
w
1.A.
3800 Centerpoint Drive Suite 100 Anchorage AK 99503 Phone: 907/777-8300 Fax: 907/777-8301
epteint*t .13,20.12
Pacific. Energy Alaska Holdings, LLC lii West Ocean BOulevard, Suite 1240 Long Beach, CA 9(1802 Attention Gerald A Tywomuk Email gtywoniuk@pacenergy corn RE; Letter Agreement by and between Pacific Energy Alaska Holdings, LLC, a Delaware limited, liability company ("PEAH"), and flhlcorp Al aska, LLC, a. Delaware limited liability company, ("HAK"). Gentlemen This letter agreement (this "Agreement") will confirm the understanding and agreement between PEAH and HAK (collectively, the "Parties" and -each, a Prt") as follows: Identification of Stock and Description of Relevant Circumstances. Effective as of May 24, 2010, and as ordered by the United States Bankruptcy Court for the District of Delaware (the"Bankruptcy Court") (Case No. 09-10785, Dkt No 1604), the bankruptcy estate of PEAH abandoned all of its right, title and mterest in and to its 50% (20j)00 shares) of the issued and outstanding shares of common stock in Cook Not Pipe Line Company (the "Stock") pursuant to section 554 of -title ii of the United States Code. In connection therewith, PEAR consented to- the delivery of a certificate representing 19,999 shares of the Stock to Silver Point Finance, LLC ("silver Point") as collateral agent for certain of PEAHs lenders (the "Silver Point Certificate" The certificate that represents 1 share of common stock of Cook Inlet Pipe Line Company is hereinafter referred to as the "Union Certificate" and, together with the Silver Point Certificate, the aCer tifi Oates r) For purposes of this Agreement, references to the Stock shall be de,to include references tQ the Certificates unless a contrary intent is e.ressed in coimection therewith, Pursuant to the confirmed and effective First Amended Chapter 11 Plan of Liquidation for Pacific Energy Resources Ltd., et al., as Modified (the ""), Gerald A. Tywonluk was appointed the plan representative- (the Tian Representative") Pursuant tu the Plan and subject to the approval of the Bankruptcy Court, the Plan Representative is authorized to cause PEAH to assign to HAK all of PEAIIs right, title and interest mand to the Stock
C.
Pursuant to and subject to the terms and conditions of this Agreement, including approval of the Bankruptcy Court or the Supervisory Board, PEAH desires to assign, and HAK desires to accept assignment of, all of PEAHs right, title and interest in and to the Stock, whether such right, title and interest is held by PEAH as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). Until this Agreement is executed by PEAH, neither the delivery of this Agreement by HAK to PEAH nor the contents of this Agreement shall create any rights or obligations for PEAH or HAK.
2. Assignment. Subject to the terms and conditions of this Agreement and in consideration for HAKs payment to PEAR of $50,000.00 (the "Fee") and the covenants and agreements of HAK that are contained herein, PEAH agrees to assign, convey and deliver to HAK, and HAK agrees to accept assignment of and acquire from PEAR at the closing of the transactions contemplated hereby (the "Closing"), all of PEAHs right, title and interest in and to the Stock, whether such right, title and interest is held by PEAH as a debtor, debtor-in-possession or Liquidating Debtor (as defined in the Plan). The assignment of the Stock shall be effective as of 7:00 a.m. Alaskan Standard Time on the same date as the Closing (the "Effective Time"). 3. Representations and Warranties.
(a) PEAR and Plan Representative. PEAR and the Plan Representative hereby represent and warrant to HAK as of the Execution Date and the Closing Date that (i) subject to satisfaction of the regulatory approvals Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), PEAR and the Plan Representative have all requisite authority to enter this Agreement and consummate the transactions contemplated hereby, including, but not limited to, all requisite approval of the Supervisory Board (as defined in the Plan), (ii) to the best of PEAH or the Plan Representatives knowledge, there are no pending suits, actions, or other proceedings pending before any federal, state, local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental authority or agency, domestic or foreign (a "Governmental Authority") or arbitrator, or threatened against PEAH or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, and (iii) neither PEAR nor the Plan Representative has sold, assigned, pledged, transferred, or hypothecated any of the Stock or any of its interests therein, or signed any power of attorney or other authorization related to the Stock which is now outstanding and in force or otherwise disposed of any of its right, title and interest in and to the Stock, except the abandonment of the Stock by PEAHs bankruptcy estate as referenced in Section 1(A) above. (b) HAK. HAK represents and warrants to PEAH as of the Execution Date and as of the Closing Date that (i) subject to satisfaction of the regulatory approvals Section 4(b)(i) and Bankruptcy Court approvals in Section 4(b)(ii), HAK has all requisite authority to enter into this Agreement and consummate the transactions contemplated hereby and (ii) to the best of HAKs knowledge, there are no pending suits, actions, or other proceedings pending before any Governmental Authority or arbitrator, or threatened against HAK or any of its affiliates, which seek to prevent the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby.
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4.
Conditions to Closing. (a) Reciprocal Closing Conditions. The obligation of each Party to consummate the transactions contemplated hereby is subject, at the option of such Party, to the satisfaction on or prior to the Closing Date of all of the following conditions: (i) the representations and warranties of the other Party contained in this Agreement shall have been true and correct on and as of the Execution Date and as of the Closing Date, (ii) the covenants and agreements of the other Party to be performed on or before the Closing Date in accordance with this Agreement shall have been duly performed in all material respects, (iii) the other Party shall have executed and delivered all documents and instruments required to be delivered by the other Party pursuant to Section 5, and (iv) there shall be no effective injunction, writ or preliminary restraining order or any order of any nature issued by a Governmental Authority of competent jurisdiction to the effect that the transactions contemplated by this Agreement may not be consummated as provided herein, no proceeding or lawsuit shall have been commenced by any such court or Governmental Authority for the purpose of obtaining any such injunction, writ or preliminary restraining order and no written notice shall have been received from any such Governmental Authority or any other third party indicating an intent to restrain, prevent, materially delay or restructure the transactions contemplated hereby. flAK-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of HAK to consummate the transactions contemplated hereby is subject, at the option of HAK, to the following: (1) flAKs receipt, prior to the Closing Date, of all consents, approvals, orders or authorizations of, or registrations, declarations or filings with, all courts of competent jurisdiction and all Governmental Authorities (including an appropriate order or other approval from the Regulatory Commission of Alaska (the "RCA") with respect to the transactions contemplated hereby), and (ii) PEAHs receipt, prior to the Closing date, of all consents, approvals, orders or authorizations of the Bankruptcy Court with respect to the transactions contemplated herein. In connection therewith, PEAH shall (x) within ten (10) days after the date hereof, make the filings or pleadings with the Bankruptcy Court required of them seeking such approval or authorization (Y) comply, at the earliest practicable date, with any request for additional information or material requested by them from the Bankruptcy Court and (z) use commercially reasonable efforts to obtain such approvals at the earliest practicable date prior to the Closing Date. The order from the Bankruptcy Court approving the transaction shall be in a form and substance satisfactory to HAK, and any such order shall be a final order, which order is in effect and not subject to stay (the "Bankruptcy Order"). Upon receipt of the Bankruptcy Order, PEAH shall provide prompt written notice to flAK of such event.
(b)
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(iii) Without limitation of the foregoing, upon HAKs request, PEAH shall cooperate in good faith with HAK in order to assist HAK in obtaining any orders or approvals that are required in connection with the transactions contemplated hereby, including in connection with the filing of a joint application or any other necessary filing with the RCA and the execution thereof. (c) PEAH-Specific Closing Conditions. Without limitation of Section 4(a), the obligation of PEAR to consummate the transactions contemplated hereby is subject, at the option of PEAR, to the following: HAK shall cause Cook Inlet Pipeline Company ("CIPL") to release the $21 million claim of CIPL against PEAH (as stipulated in the bankruptcy proceedings).
5. Closing and Closing Deliverables. Assuming satisfaction or waiver of the conditions to closing set forth in Section 4, the Closing shall take place 5 Business Days after the later to occur of: (i) HAKs delivery to PEAH of the written notice contemplated in Section 4(b)(i)and (ii) 5 PEARs delivery to HAK of the written notice contemplated in Section 4(b)(ii) (the "Closing D ate ). The Closing shall occur at 11:00 A.M. Alaskan Standard Time on the Closing Date at the office of HAK or at such other time and place (or by such other electronic means) as the Parties agree in writing. At the Closing: (a) (b) HAK shall pay to PEAR the Fee via wire transfer of immediately available funds to the account(s) designated in writing by PEAH; PEAH shall (i) deliver to Hilcorp the Silver Point Certificate that is then in the possession of PEAH (after diligent inquiry for same prior to the Closing), Silver Point or any of their respective affiliates, if any (Hilcorp is already in possession of the Union Certificate) or, as a result of Silver Points inability to locate the Silver Point Certificate as of the date of execution of this Agreement, deliver such other instrument as HAK may require to replace the missing Silver Point Certificate if such cannot be located before closing; and (ii) convey all of its right, title and interest in and to the Stock to HAK by stock transfer agreement duly executed by PEAH and HAK in substantially the form attached hereto as Exhibit A (the "Assignment"); HAK and PEAH shall execute any documents required by the RCA in order to obtain the RCAs approval with respect to the transactions contemplated hereby; PEAEI shall execute and deliver an executed Form W-9 and an executed certificate of non-foreign status as required in Treasury Regulation 1.14452(b)(2); and HAK and PEAH shall each execute and deliver to one another any other documents that are reasonably required in order to effect the consummation of the transactions contemplated hereby.
(c) (d)
(e)
6. Additional Bankruptcy-Related Provisions. flAK shall have no right to a distribution from PEAHs estate under the Plan on account of any claim in favor of flAK (or any claim assigned to HAK). Furthermore, each of HAK and PEAH covenants not to sue the other Party
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based on any claim arising under or related to the Stock. Nothing herein shall waive, limit, impair, or restrict any right or defense of HAK or any affiliate thereof, to protect, preserve, assert and enforce its rights, remedies, defenses and interests against any and all persons and entities other than PEAH. 7. Termination. Either Party may terminate this Agreement at any time prior to the Closing by delivering a termination notice to the other Party if (a) the Closing has not occurred as of December 15, 2012, unless an extension is mutually agreed to in writing by the Parties, (b) the representations or warranties of the other Party are not true and correct as of the Execution Date, at any time prior to the Closing or on the Closing Date, or (c) the other Party has not performed its covenants in all material respects to the extent required prior to the Closing Date pursuant to this Agreement. Without limitation of the foregoing, at any time between the date first-written above and the Closing, IIAK shall have the right to terminate this Agreement by delivering a termination notice to PEAR if, in connection with any due diligence it may conduct or otherwise, HAK becomes aware of (i) any matter which would cause the Stock to be unacceptable to HAK in its reasonable judgment or (ii) any cost, obligation or liability associated with ownership of the Stock that is unacceptable to HAK in its reasonable judgment. Notwithstanding the foregoing, no Party shall be entitled to deliver such a termination notice if the Closing has failed to occur as a result of the such Partys negligent or willful failure to perform or observe in any material respect such Partys covenants and agreements hereunder. Upon the delivery of any such termination notice, this Agreement shall be deemed to be void and of no further force and effect, except that the provisions of Sections 8, 9-12, 13, 15 and 17 shall survive such termination and continue in full force and effect indefinitely. 8. Confidentiality. It is understood and agreed between HAK and PEAH that the terms and existence of this Agreement shall remain confidential by and between HAK and PEAH and shall not, except as expressly permitted herein, be disclosed to any third parties. IIAK and PEAR may each disclose the terms and existence of this Agreement (i) to each such Partys respective affiliates stockholders, members, officers, directors, employees, agents, lenders, advisors, representatives, accountants current and prospective investors, partners or transferees, attorneys and consultants (collectively, "Representatives") (ii) in the course of any trial or other administrative or legal proceeding involving a Party or a Partys Representative, or (iii) as required by any applicable securities law or other applicable law, regulation, order (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed) or the rules of any applicable national stock exchange or (iv) to the extent reasonably necessary to obtain any approval of any Governmental Authority of competent jurisdiction, including the DNR and the Bankruptcy Court. 9. Notices. All notices, communications and document deliveries (each, a "Notice") required or permitted to be given hereunder shall be in writing and shall be delivered personally, by registered or certified overnight United States mail, return receipt requested or by facsimile transmission or email. Any Notice given in accordance herewith shall be deemed to have been given only when delivered to the party intended to receive it. For purposes of this Agreement, (i) PEANs contact information for all Notices shall be the contact information first-written above and (ii) FlAKs contact information for all Notices shall be as set forth below. FlAK and PEAR may change all or any portion of its contact information by giving written notice to the other in a manner that complies with this Section 9.
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Hhlcorp Alaska, LLC 1201 Louisiana, Suite 1400 Houston, Tecas 77002 Attn: Jason C. Rebrook, Vice President Phone: 7.l3)209-.2400 .Facsimile: (713) 289-2650 Email jrbrook(hilcoip.com 10 Acknowledgments Counterparts Time is of the Essence Each Party acknowledges and grees that (1) it has read and understood this Agreement, (n) is able to freely , determine whether It is advisable to execute this Agreement (and consummate the transactions contemplated hereby) and. (iii) it has either consulted with an attorney regarding the terms and provisions of this Agreement and any other documents executed. in :coniiection therewith or has voluntarily elected not to do Neither this Agreement nor any other documents executed in conneCtion herewith shall be construed against any , of the Parties by reason of the authorship of any provision vontainodthoreirti This Agreement may be executed and delivered (including by facsimile or pdf ttansmission) by each Party in any number of counterparts, each of which shall be an original Thstruinent, but all of which together shall cOnstitute but one and the same instrument and shall become effective when one or more counterparts have been signed by each Party and delivered to the other Party (including by facsimile or pdf. transmission) Time is of the essence to both Parties in the performance of this Agreement and the transactions contemplated hereby. 11. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware The Parties hereby irrevocably consent to the exclusive jurisdiction and venue of the United States Bankruptcy Court for the District of Delaware ("Bankruptcy Court") to interpret and enforce the terms of this Agreement If for any reason the Bankruptcy Court declines to exercise jurisdiction then the Parties hereby irrevocably consent to the exciusivejurisdiction and venue of the United States District Court for the District of Delaware Each Party waives any , objection which it may have pertaining to improper venue or forum non-conveniens to the conduct of any litigation or proceeding - in the foregomg courts Each Party agrees that any and all process directed to, it m any such proceeding or litigation may be served upon it outside of the State of Delaware with the same force and effect as if such service had been made within the State of Delaware EACH OF THE PARTIES HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY LITIGATION, ACTION OR OTHER PROCEEDING BROUGHT IN CONNECTION WITE THIS :AGREF.MENT. 1.2. Expenses: Waivers: Severabilit. Each Party will pay its: own expenses and costs incidental to the negotiation and completion of the transaction, including legal fees Any failure by any Party to comply with any of its obligations, agreements or conditions herein contained may be waived by the Party to whom such coinphan.ce is owed by an instrument signed by the Party to whom compliance is owed and expressly ideiftlifi. as a waiver, but not in any other manner. It is the intent of the Parties that the provisions contained in this Agreement shall be severable Should any provisions, in whole or in. part, be held invalid as a matter of law, such holding shall not affect the other portions of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion
Assignment; Binding Agreement. Neither Party shall assign or otherwise transfer all or 13. any part of this Agreement, nor shall any Party delegate any of its rights or duties hereunder, without the prior written consent of the other Party and any transfer or delegation made without such consent shall be null and void. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective permitted successors and assigns. Subject to the terms set forth herein, the full execution of this Agreement creates a legally binding and enforceable agreement between the Parties regarding the matters set forth herein. Amendment; No Third-Party Beneficiaries; Entire Agreement. This Agreement may be 14. amended or modified only by an agreement in writing signed by PEAH and HAK and expressly identified as an amendment or modification. Nothing in this Agreement shall entitle any Person other than PEAB and HAK to any claim, cause of action, remedy or right of any kind. This Agreement, and the documents to be delivered or executed pursuant to this Agreement, constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understanding or discussions. Limitation on Damages. Notwithstanding anything to the contrary contained herein, 15. none of HIAK, PEAH or any of their respective affiliates shall be entitled to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby and each of flAK and PEAH, for itself and on behalf of their respective affiliates, hereby expressly waives any right to lost profits, indirect, consequential, special or punitive damages in connection with this Agreement and the transactions contemplated hereby. Disclaimer. EXCEPT FOR REPRESENTATIONS AND WARRANTIES CONTAINED 16. IN THIS AGREEMENT, PEAH MAKES NO, AND PEAH EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IN THIS OR ANY OTHER INSTRUMENT, AGREEMENT OR CONTRACT DELIVERED HEREUNDER OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREUNDER OR THEREUNDER. Further Assurances. At and after Closing, PEAIT and HAK shall each execute, 17. acknowledge and deliver all such further conveyances, notices, affidavits, assumptions, releases and acquittances, and such other instruments, and shall each take such further actions as may be necessary or appropriate to assure fully to flAK or PEAH (including their successors and assigns) as the case may be, that the transactions described in this Agreement shall be completed and that all of the Stock intended to be conveyed under the terms of this Agreement are so conveyed, including such Stock that are improperly described herein or inadvertently omitted from this Agreement and/or the assignments or other instruments executed contemporaneously herewith (including the exhibits attached to each). Construction; Interpretation. Capitalized terms defined elsewhere in this Agreement shall 18. have the meanings so given them herein. If any period of days is referenced in this Agreement and such period would expire on a day that is not a Business Day then such period shall instead expire on the first Business Day following such day. Unless otherwise required by the context in which any term appears, the following rules of construction shall apply for all purposes of this
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Agreement. Unless the context otherwise requires, the gender of all words used in this Agreement includes the masculine, feminine, and neuter, the singular shall include the plural, and the plural shall include the singular. The words "include," "includes" and "including" shall be deemed to be followed by the words "without limitation." All references to Sections refer to sections of this Agreement, and all references to Exhibits are to exhibits attached hereto, each of which is incorporated herein for all purposes. Headings, titles and subtitles in any article, section or subsection of this Agreement are included for convenience only and do not affect, and will not be used in, the interpretation of this Agreement. The words "herein," "hereof," "herewith" and "hereunder" and similar terms in this Agreement shall refer to this Agreement as a whole and not to any particular section or subsection of this Agreement. 19. Specific Performance. Without limitation of any other provision in this Agreement, the Parties acknowledge that an award of damages for failure to comply with this Agreement would not be an adequate remedy for the Party attempting to enforce this Agreement, and accordingly the Parties expressly authorize any such Party to bring an action against the other Party for a permanent or temporary injunction, to compel the specific performance or any other equitable remedy by such other Parties of their obligations to comply with such provisions without the necessity of posting bond or other security in connection therewith. This remedy is in addition to any other remedies at law or in equity. 20. Execution by PEAH. If the foregoing correctly sets for the understanding and agreement between HAK and PEAH, please so indicate by executing and delivering to HAK an executed counterpart of the signature page attached hereto. PEAO Letter Agreement. Contemporaneously with the execution of this Agreement, HAK and Pacific Energy Alaska Operating LLC entered into that certain letter agreement of even date herewith (the "PEAO Letter Agreement"). The PEAO Letter Agreement contemplates a Closing on same date as set forth herein, but the parties hereto acknowledge that if the Closing under the PEAO Letter Agreement has not yet occurred but the conditions set forth herein have been satisfied and the parties are ready to proceeding to Closing under this Agreement, the Closing of this Agreement may occur prior to Closing under the PEAO Letter Agreement.
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IN WIThESS WHEREOF,thi s Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCQRP ALA S KA, LLC
B Name: Vop~-C, *ebrook Title: ce President Date: PACIFIC EGY ALASKA OPERATING LLC
IN WITNESS WHEREOF, this Agreement has been signed by each of the Parties on the date below each such Partys signature. HILCORP ALASKA, LLC
By: Name: Mon C. *ebrook Title: Vice President Date: PACIFIC ENERGY ALASKA OPERATING LLC
_ 0, -kj
VA
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EXHIBIT A -- FORM OF STOCK TRANSFER AGREEMENT This Stock Transfer Agreement ("Agreement") is dated as of but to be effective as of October 1, 2012, and is executed and delivered by Pacific Energy Alaska Holdings LLC, a Delaware limited liability company ("Transferor"), to and for the benefit of Hilcorp Alaska, LLC, a Delaware limited liability company ("Transferee"). Transferor and Transferee are sometimes collectively referred to herein as the "Parties" and, each a "Party". RECITALS WHEREAS, Transferor desires to transfer, and Transferees desire to obtain from Transferor, all of Transferors right, title and interest in and to nineteen thousand nine hundred ninety-nine (19,999) shares of common stock ("Common Stock") of Cook Inlet Pipeline Company ("CIPL") on the terms and subject to the conditions set forth below; and WHEREAS, this Agreement is made in furtherance of that certain Letter Agreement between Transferor and Transferee dated September 13, 2012 ("Letter Agreement"); and WHEREAS, any capitalized term used herein but not defined herein shall have the meaning ascribed to such term in the Letter Agreement.
AGREEMENT
NOW, THEREFORE, the Parties hereby agree as follows: 1. Transfer of Shares. Upon the terms and subject to the conditions set forth in this Agreement and in consideration of receipt of Fee specified in the Letter Agreement and the representations, warranties, covenants and agreements contained therein, Transferor has agreed to transfer, assign and sell to the Transferee all of Transferors right, title and interest in and to the Common Stock. Upon the execution of this Agreement by Transferor and Transferee, and to the extent such certificates can be located, Transferor shall deliver to Transferee the certificate(s) representing the Common Stock, duly endorsed for transfer or accompanied by duly executed stock powers transferring such Common Stock to the Transferee, but in event such certificates cannot be located after diligent inquiry by Transferor, such other instruments as may be reasonably acceptable to Transferee to effectuate the transfer of the Common Stock; and following such transfer, the Transferor shall immediately cease to be a shareholder of CIPL and hereby releases and waives all rights that he, she or it may have in respect of its ownership of Common Stock. 2. Parties in Interest. This Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns. 3. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings of the parties with respect thereto.
4. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to principles of conflicts of laws). IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date firstwritten above. TRANSFEROR: PACIFIC ENERGY ALASKA HOLDINGS LLC
By:. Name: Gerald A. Tywoniuk Title: TRANSFEREE: HILCORP ALASKA, LLC By: Name: Jason C. Rebrook Title: Vice President
Exhibit C
DOCS_LA:259002.1 68773-003
Exhibit C EQ
Cash on hand, June 30, 2012 Estimated remaining costs of winding down the Liquidating Debtors Federal and state income taxes owing for 2012 tax year $ 1,454,685 (19,000) (440,000) $ PEAK PERL $ 1,331,172 (290,000) -
Available for remaining creditor distributions prior to Trading Bay and C1PL Assignments to HAK Cash proceeds from Trading Bay and CIPL Assignments, the subjects of this motion Less: Estimated legal costs to complete transaction and secure court approval Bonus payments to Supervisory Board member and Plan Representative Estimated other costs Estimated incremental Federal and state income taxes Incremental net proceeds to the Liquidating Debtors from the Assignments Total cash available for additional distributions to creditors Distribute to class 6, unpaid balance of general unsecured claims Distribute to class 6, post effective date interest on general unsecured claims Distribute to sole member of PEAO Distribute to class 5, unpaid balance of general unsecured claims Distribute to class 5, post effective date interest on general unsecured claims Distribute to sole member of PEAR Distribute to class 4, unpaid balance of general unsecured claims Distribute to class 4, a portion of post effective date Interest on general unsecured claims Total Distributions Remaining cash balance on dissolution of Liquidating Debtors
50,000 (1,000) -
1,041,172 -
B A+B = C
49,000 49,000
1,041,172 [1]
4,948,728 (4,997,728)
0 C-D $
(7,181,685) $
(49,000) $
(1,041,172) -
[1] in addition to the amounts shown above, distributions to date for classes 6, 5 & 4, general unsecured creditors, total: [2] Reflects HAK causing the State of Alaska to withdraw its $40.0 million class 6 claim as PEAOs condition to close the Trading Bay Assignment [3] Reflects HAK causing CIPL to withdraw its $21.1 million class 5 claim as PEAOs and PEAHs conditions to closing the Trading Bay and CIPL Assignments, respectively
71,308
$ 7,863,052
IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: PACIFIC ENERGY RESOURCES LTD., et al., Liquidating Debtors. )
)
) ) )
Ann Mason, being duly sworn according to law, deposes and says that she is employed by the law firm of Pachulski Stang Ziehl & Jones LLP, attorneys for the Debtors in the abovecaptioned action, and that on the 5 th day of October 2012 she caused a copy of the following documents to be served upon the parties on the attached service lists in the manner indicated: Liquidating Debtors Notice of Motion for Order Approving Assignment of Assets to Hilcorp Alaska, LLC and Distribution of the Proceeds Thereof ("Notice") Liquidating Debtors Motion for Order Approving Assignment of Assets to Hilcorp Alaska, LLC and Distribution of the Proceeds Thereof ("Motion") Because the service list was so large (nearly 9,000 parties), the copies of the Motion that were served on parties in interest other than the core service list did not contain copies of Exhibits A, B or D. However, the service copies of the Motion and the Notice advised parties in interest that they can obtain copies of Exhibits A, B and D by making a request, in writing, to counsel for the Liquidating Debtors at the address listed in the signature block to the Motion.
The Liquidating Debtors (and the last four digits of each of their federal tax identification numbers) are: Pacific Energy Resources Ltd. (3442); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available), and Pacific Energy Alaska Operating LLC (7021).
Attached as Exhibit 1 are the parties (the "Core Service List") which were served copies of the Notice and Motion. Attached as Exhibit 2 are the parties in interest (the "Master Service List") which were served copies of the Notice and Motion without Exhibits A, B and D.
WARAIWA a
I
ll
State of California County of Los Angeles Subscribed and sworn to (or affirmed) before me on this 5th day of October, 2012 by Ann Mason and proved to me on the basis of satisfactory evidence to be the person) who appeared before me.
MELISA DESJARDIEN Commission # 1869835 Notary Public California Los Angeles County Comm. M i res Nov 27, 2013
DOCSLA:258715.1 68773-003
DOCS_LA:258715.1 68773-003
Exhibit I
pg. 3
(Counsel for Union Oil Company of California) Norman M. Monhait, Esquire Rosenthal, Monhait & Goddess, PA Citizens Bank Center, Suite 1401 919 Market Street P.O. Box 1070 Wilmington, DE 19899 (Counsel for Westchester Fire Insurance Company and Noble Energy Inc.) Tobey M. Daluz, Esquire Joshua E. Zugerman, Esquire Ballard Spahr Andrews & Ingersoll, LLP 919 N. Market Street, 11th Floor Wilmington, DE 19801 (Counsel for Oxy Long Beach Inc.) David L. Finger, Esquire Finder, Slanina Liebesman, LLC One Commerce Center 1201 N. Orange Street, 7 th Floor Wilmington, DE 19801 (Official Committee of Unsecured Creditors) David B. Stratton, Esquire James C. Carignan, Esquire Pepper Hamilton LLP Hercules Plaza, Suite 1500 1313 Market Street Wilmington, DE 19899 (Counsel for Marathon Oil Company) Kevin J. Mangan, Esquire Womble Carlyle Sandridge & Rice, PLLC 222 Delaware Avenue, Suite 1501 Wilmington, DE 19801 (Counsel for Cook Inlet Region, Inc.) Eric Lopez Schnabel, Esquire Dorsey & Whitney (Delaware) LLP 300 Delaware Avenue, Suite 1010 Wilmington, DE 19801 (Counsel for Area Energy LLC) Norman L. Pemick, Esquire Karen M. McKinley, Esquire Cole, Schotz, Meisel, Forman & Leonard, P.A. 500 Delaware Avenue, Suite 1410 Wilmington, DE 19801 (Counsel for Ammadon Limited and Catherwood Limited) Mark E. Felger, Esquire Cozen OConnor 1201 N. Market Street, Suite 1400 Wilmington, DE 19801 (Counsel for Forest Oil Corporation) Robert J. Dehney, Esquire Curtis S. Miller, Esquire Morris Nichols Arsht & Tunnell LLP 1201 N. Market Street Wilmington, DE 19899 (Counsel for Stellar Energy LLC) Brian E. Farnan, Esquire Phillips, Goldman & Spence, P.A. 1200 North Broom Street Wilmington, DE 19806 (Counsel for Ramshom Investments, Inc.) Jonathan L. Parshall, Esquire Murphy & Landon 1011 Centre Road, Suite 210 Wilmington, DE 19805
(Counsel for Longfellow Energy LP) Teresa K.D. Currier, Esquire Saul Ewing LLP 222 Delaware Avenue, Suite 1200 Wilmington, DE 19899 (Counsel for Rise Energy Partners, LP) Christopher A. Ward, Esquire Justin K. Edelson, Esquire Polsinelli Shughart, PC 222 Delaware Avenue, Suite 1101 Wilmington, DE 19801 (Counsel to Cook Inlet Pipe Line Company) Stephen M. Miller, Esquire Brett D. Fallon, Esquire Douglas N. Candeub, Esquire Moms James LLP 500 Delaware Avenue, Suite 1500 Wilmington, DE 19899 (Counsel to Waveland Services, Inc.) Mary F. Caloway, Esquire Mona A. Parikh, Esquire Buchanan Ingersoll & Rooney PC 1105 North Market Street, Suite 1900 Wilmington, DE 19801 (United States Attorney General) Eric H. Holder, Jr. Office of the Attorney General U.S. Department of Justice 950 Pennsylvania Avenue, N.W. Washington, DC 20530-0002 Secretary of State Division of Corporations Franchise Tax P.O. Box 7040 Dover, DE 19903 Secretary of Treasury P.O. Box 7040 Dover, DE 19903 Secretary of Treasury 15 & Pennsylvania Avenue, N.W. Washington, DC 20220 Attn: Insolvency District Director Internal Revenue Service 31 Hopkins Plaza, Room 1150 Baltimore, MD 21201 Internal Revenue Service P.O. Box 21126 Philadelphia, PA 19114-0326 Attn: Insolvency Internal Revenue Service 1352 Marrows Road, 21 Floor Newark, DE 19711-5445 Mark Schonfeld, Esq. Regional Director Securities & Exchange Commission New York Regional Office 3 World Financial Center, Suite 400 New York, NY 10281-1022
DOCS_LA:258715.1 68773-003
Exhibit 2
pg. 4
DOCS_LA:258715.1 68773-003
Exhibit 2
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A & G COMPRESSOR PARRS AUN: GREG SALES 13671 BORA DRIVE SANTA FE SPRINGS, CA 90670 A & G COMPRESSOR PARRS 13671 BORA DRIVE SANTA FE SPRINGS, CA 90670 A & G COMPRESSOR PARTS 13671 BORA DRIVE SANTA FE SPRINGS, CA 90670 A HENRY & M HENRY ITEE ARTHUR AND MARIE HENRY LIVING U/A DID 00/00/0000 147 BLACK OAK DRIVE PITTSBURGH, PA 15220 AAA ALASKA CAB P.O. BOX 1306 SOLDOTNA, AK 99669 AAA ALASKA CAB, INC. AT-FN: DEBRA HIBBERT P0 BOX 1306 SOLDOTNA, AK 99669 USA A-AMERICAN SELF STORAGE 3301 TRUXTUN AVENUE BAKERSFIELD, CA 93301-3115 AARON BURCHAM 36314 LAKESHORE DRIVE SOLDOTNA, AK 99669 AASI CUST OF IRA FBO SCOTT WAYNE MCGURK 1306 WEST BAKER AVENUE FULLERTON, CA 92833-4619 AASI CUST OF IRA FBO ALAN D SHAW P0 BOX 127 LUMMI ISLAND, WA 98262 A-C ELECTRIC COMP BOX 81977 BAKERSFIELD, CA 93380 ACE PROFESSIONAL RISK, SURETY ATrN: MARK ATKINS 1420 FIFTH AVENUE, SUITE 2200 SEATTLE, WA 98101 ACE SURETY 1420 FIFTH AVE., SUITE 2200 SEATTLE, WA 98101 ACE-USA / WESTCHESTER FIRE INSURANCE COMPANY C/0 TOBEY M. DALUZ, ESQUIRE BALLARD SPAHR ANDREWS & INGERSOLL, LLP 919 NORTH MARKET STREET, 12TH FLOOR WILMINGTON, DE 19801 ACE-USA I WESTCHESTER FIRE INSUR CO C/0 TOBEY M. DALUZ, ESQUIRE BALLAD SPAHR ANDREWS & INGERSOLL, LLP 919 NORTH MARKET STREET, 12TH FLOOR WILMINGTON, DE 19801
ACS P.O. BOX 196666 ANCHORAGE, AK 99519-6665 ACS 600 TELEPHONE AVENUE MS8 ANCHORAGE, AK 99503 ACS LONG DISTANCE INC. ATTN: LARRY SNIPES A/R LD CABS BILLING MAIL STOP 8 600 TELEPHONE AVENUE ANCHORAGE, AK 99503-6091 ACS LONG DISTANCE INC. A/R LD CABS BILLING MAIL STOP 8 600 TELEPHONE AVENUE ANCHORAGE, AK 99503-6091 ACS LONG DISTANCE, INCORPORATED A/R LD CABS BILLING MAIL STOP 8,600 TELEPHONE AVENUE ANCHORAGE, AK 99503-6091 ACS WIRELESS P.O. BOX 92400 ANCHORAGE, AK 99509 ACUREN USA INCORPORATED P0 BOX 190350 ANCHORAGE, AK 99519-0350 ADA C NGAI AND CHRISTOPHER NGAI JTWROS 22 COLUMBUS IRVINE, CA 92620 ADOBE SYSTEMS INCORPORATED 345 PARK AVENUE SAN JOSE, CA 95110-2704 ADRIENNE FRILOT 4010 THERESA STREET LONG BEACH, CA 90814 ADVANCED DATA STORAGE INCORPORATED 6001 SCHIRRA COURT BAKERSFIELD, CA 93313 ADVANCED FILTRATION CONCEPTS, INCORPORATED P0 BOX 80759 RANCHO SANTA MARGARI, CA 92688-0759 ADVANCED WORKPLACE STRATEGIES, INC. 17821 E. 17TH ST., STE. 260 TUSTIN, CA 92780 AERA ENERGY LLC ATTN: J.C. BOYD C/0 MAYER BROWN LLP STEVEN E. RICH, ESQ. 350 SOUTH GRAND AVENUE 25TH FLOOR LOS ANGELES, CA 90071-1503 AERA ENERGY LLC C/0 MAYER BROWN LLP ATFN: STEVEN E. RICH, ESQ. 350 SOUTH GRAND AVENUE 25TH FLOOR LOS ANGELES, CA 90071-1503
(Counsel for Longfellow Energy LP) David Jones, Esquire Sprouse Shrader Smith P.C. 701 S. Taylor, Suite 500 Amarillo, TX 79105 (Counsel for Longfellow Energy LP) David M. Bennett, Esquire Rhett G. Campbell, Esquire Robert L. Paddock, Esquire Thompson & Knight, LLP 333 Clay Street, Suite 3300 Houston, TX 77002 (Counsel for Kathleen Brown) John A. Leonard, Esquire Leonard, Key & Key PLLC 900 8 " Street, Suite 320 Wichita Falls, TX 76307 (Counsel for Rise Energy Partners, LP) Robert D. Albergotti, Esquire Mark Elmore, Esquire Haynes and Boone, LLP 2323 Victory Avenue, Suite 700 Dallas, TX 75219 (Counsel for Waveland Services, Inc.) H. Kent Aguillard, Esquire Attorney at Law 141 S. 1611 Street P.O. Box 391 Eunice, LA 70535 3E COMPANY ATfN: JERRY MARPHY 1905 ASTON AVENUE, SUITE 100 CARLSBAD, CA 92008 3E COMPANY 1905 ASTON AVENUE, SUITE 100 CARLSBAD, CA 92008 55 CAMPAU NW GRAND RAPIDS, MI 49503-2616 A & E WELDING P0 BOX 286 ARGYLE, WI 53504-0286 A & E WELDING 14011 ANDERSON ST. PARAMOUNT, CA 90723
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60197-6463
ATHENA SCHOFIELD 18069 COASTLINE DR APT 18 MALIBU, CA 90265-5733 ATLANTIC RICHFIELD COMPANY 333 SOUTH HOPE STREET LOS ANGELES, CA 90071 ATMOS INTERNATIONAL, INC. 1665 S. BROOK}{URST ST, SUITE A-I ANAHEIM, CA 92804 ATTENTION: BANKRUPTCY DIVISION C/0 LINDA DELGADO P.O. BOX 579 BAKERSFIELD, CA 93302 AUDREY E ELLINGSEN TRUST 1989 114 ALTURA WAY GREENBRAE, CA 94904-1220 AUDREY E ELLINGSEN TRUST 1989 C/0 ROYALTY DISTRIBUTORS,INC. (AS AGENT) P0 BOX 24116 TEMPE, AZ 85285
40285-6158
ARTEMUS BRADLEY JR 14763 LADYBIRD VICTORVILLE, CA 92394 ARTIC OFFICE PRODUCTS BOX 10083 ANCHORAGE, AK 99510
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90221
EVELYN EDMONSON TRUST A1TN: DOUGLAS A. BARR 5590 EAST YALE AVENUE, SUITE 201 DENVER, CO 80222 EVELYN EDMONSON TRUST C/O DOUGLAS A BARR 5590 EAST YALE AVENUE, SUITE 201 DENVER, CO 80222 EVELYN EDMONSON TRUST C/O ROYALTY DISTRIBUTORS,INC. (AS AGENT) P0 BOX 24116 TEMPE, AZ 85285
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MGR
P0 BOX 2952 SACRAMENTO, CA 95812-2952 FRANCHISE TAX BOARD ATFN: LUKA OCKO BANKRUPTCY SECTION MS A340 P0 BOX 2952 SACRAMENTO, CA 95812-2952 FRANCHISE TAX BOARD P.O. BOX 942857 SACRAMENTO, CA 94257-0531 FRANK C WAARA P0 BOX 1854 KENAI, AK 99611 FRANK D PAULSEN 978 UTICA AVE VENTURA, CA 93004 FRANK E WOLLENSACK ESTATE WENDY W SCHNUR, EXECUTRIX 83 BAY VIEW AVENUE MYSTIC, CT 06355 FRANK E WOLLENSACK ESTATE C/0 ROYALTY DISTRIBUTORS,INC. (AS AGENT) P0 BOX 24116 TEMPE, AZ 85285 FRANK J MAZGAJ ESTATE ANNE ALEKSANDROWICZ, EXECUTOR 9702 KNOLL ROAD EDEN, NY 14057 FRANK J MAZGAJ ESTATE C/O ROYALTY DISTRIBUTORS,INC. (AS AGENT) P0 BOX 24116 TEMPE, AZ 85285 FRANKLIN T HARRIS 1621 WEST CHEYENNE ROAD COLORADO SPRINGS, CO 80906 FRANKLIN T HARRIS C/0 ROYALTY DISTRIBUTORS,INC. (AS AGENT) P0 BOX 24116 TEMPE, AZ 85285 FRANKLIN T HARRIS & BARBARA HARRIS 1621 WEST CHEYENNE ROAD COLORADO SPRINGS, CO 80906
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J WEB HOLES 411 STANLEY AVE CINCINNATI, OH 45226-1718 J WEB HOLES C/O ROYALTY DISTRIBUTORS,INC. (AS AGENT) 411 STANLEY AVENUE CINCINNATI, OH 45226-1718 J. ARON & COMPANY ATFN: SIMON COLLIER 85 BROAD STREET NEW YORK, NY 10004
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