Gas Lease Sale

Notice of Competitive Oil and Gas Lease Sale Bureau of Land Management – Eastern States Office

June 14, 2012

United States Department of the Interior Bureau of Land Management Eastern States 7450 Boston Boulevard Springfield, Virginia 22153 http://www.es.blm.gov March 16, 2012 NOTICE OF COMPETITIVE LEASE SALE OIL AND GAS In accordance with Federal Regulations 43 CFR Part 3120, the Eastern States Office is offering competitively 87 parcels containing 92,863.30 acres of Federal lands in Alabama (43,038.30 acres), Arkansas (217.50 acres), Louisiana (23,432.70 acres), and Mississippi (26,164.80 acres) for oil and gas leasing.

This notice provides:  the time and place of the sale; how to register and participate in the bidding process;   the sale process;  the conditions of the sale;  how to file a noncompetitive offer after the sale; how to file a presale noncompetitive offer; and   how to file a protest to our offering the lands in this Notice.

Beginning on page 10, is a list of the lands we are offering. The lands are listed by state and described by parcel number and legal land description. Below each parcel we have included any stipulations, lease notices, special conditions, or restrictions that will be made a part of the lease at the time we issue it. We have also identified those parcels where the United States owns less than 100 percent interest in the oil and gas mineral rights; and those that have pending pre-sale noncompetitive offers to lease which will not be available for noncompetitive offers to lease if they receive no bid at the sale. For your convenience, we are also including copies of the stipulations, lease notices, etc. affecting the parcels in this sale notice.

When and where will the sale take place?

When: The competitive oral auction will begin at 10:00 a.m. on June 14, 2012. The sale room will open at 9:00 a.m. to allow you to register and obtain your bid number.

Where: The sale will be held at the Bureau of Land Management, Eastern States Office, 7450 Boston Boulevard, Springfield, VA 22153. Parking is available.

1

Access: The sale room is accessible to persons with disabilities. If assistance is needed for the hearing or visually impaired, contact the Minerals Adjudication Team on (703) 440-1728, or at the mailing address on the letterhead of this notice by May 16, 2012.

Information regarding leasing of Federal minerals overlain with private surface, referred to as “Split Estate”, is available at the following Washington Office website. A Split Estate brochure is available at this site. The brochure outlines the rights, responsibilities, and opportunities of private surface owners and oil and gas operators in the planning, lease sale, permitting/development, and operations/production phases of the oil and gas program: http://www.blm.gov/bmp/Split_Estate.htm.

What is the sale process?

Starting at 10:00 a.m. on the day of the sale:  the auctioneer will offer the parcels in the order they are shown in the notice;  all bids are on a per-acre basis, rounded up to whole acres, for the entire acreage in the parcel;  the winning bid is the highest oral bid equal to or exceeding the minimum acceptable bid; and the decision of the auctioneer is final.  How do I participate in the bidding process?

To participate in the Bureau of Land Management (BLM) bidding process, you must register and obtain a bidder number. If you are bidding for more than one party, you must register and obtain a separate bidder number for each company or individual you represent. The BLM will begin registering bidders at 9:00 a.m. on the day of the sale.

When you register to bid, you will be required to show a valid government-issued photo identification (ID) to verify your identity. If you do not provide a valid photo ID, you will not be allowed to register as a bidder and participate in the auction.

You will also be asked to sign a statement to confirm that any bid you cast will represent a goodfaith intention to acquire an oil and gas lease and that you understand that any winning bid will constitute a legally binding commitment to accept the lease and pay monies owed. Further, you will acknowledge that you understand that it is a crime under 18 U.S.C. 1001 and 43 U.S.C. 1212 to knowingly and willfully make any false, fictitious, or fraudulent statements or representations regarding your qualifications; bidder registration and intent to bid; acceptance of a lease; or payment of monies owed; and that any such offense may result in a fine or imprisonment for not more than 5 years or both. You will also acknowledge that you understand that it is a crime under 30 U.S.C. 195 (a) and (b) to organize or participate in any scheme to defeat provisions of the mineral leasing regulations. Any person who knowingly violates this provision will be punished by a fine of not more than $500,000, imprisonment for not more than 5 years, or both.

2

If you, or the party you represent, owe the United States any monies that were due the day of a previous oil and gas lease auction conducted by any BLM office (the minimum monies owed the day of sale), you will not be allowed to register to bid at this lease sale. The Mineral Leasing Act requires that leases be issued to a “responsible qualified bidder” (30 U.S.C. 226(b)(1)(A)). Any bidder, or party represented by a bidding agent, that does not pay the minimum monies owed the day of the sale is not a “responsible qualified bidder” and will be barred from participating in any oil and gas lease auction nationwide until that debt to the United States is settled. In addition, if you or the party you represent defaults at any three sales conducted by any BLM office, you or the party you represent will be barred permanently from participating in any other BLM oil and gas lease sale auction.

-Federal acreage limitations: Qualified individuals, associations, or corporations may only participate in a competitive lease sale and purchase Federal oil and gas leases from this office if such purchase will not result in exceeding the State limit of 246,080 acres of public domain lands and 246,080 acres of acquired lands (30 U.S.C. 184(d)). For the purpose of chargeable acreage limitations, you are charged with your proportionate share of the lease acreage holdings of partnerships or corporations in which you own an interest greater than 10 percent.

Lease acreage committed to a unit agreement or development contract that you hold, own or control is excluded from chargeability for acreage limitation purposes.

The acreage limitations and certification requirements apply for competitive oil and gas lease sales, noncompetitive lease offers, transfer of interest by assignment of record title or operating rights, and options to acquire interest in leases regardless of whether an individual, association, or corporation has received, under 43 CFR 3101.2-4, additional time to divest excess acreage acquired through merger or acquisition.

What conditions apply to the lease sale? 

Parcel withdrawal or sale cancellation: We reserve the right to withdraw any or all parcels before the sale begins. If we withdraw a parcel, we will post a notice in Eastern States’ Public Room and on our website at http://www.blm.gov/es/st/en/prog/minerals/current_sales_and.html . You may also get the number(s) of withdrawn parcels by contacting the Minerals Adjudication Team on (703) 4401600. If there’s a need to cancel the sale, we will try to notify all interested parties in advance.

Inclement Weather In the event of hazardous weather, please tune in to local television or radio stations.

Weather related or regional information may also be accessed via the Internet at www.opm.gov. If there is a broadcast for Federal employees, BLM’s hours of operation will be affected.

The procedure for Oil and Gas Lease Sales scheduled on a business day with a 2-hour delay or if the office is closed for business, the BLM will proceed as follows: 1. In the event of a 2-hour delay, the doors to the BLM, Eastern States Office will remain locked until 10:00 a.m. The Oil and Gas Lease Sale will begin at 11:30 a.m.

3

with registration starting at 10:00 a.m., please call for the recorded information on delays at (703) 440-1777.

2. In the event that the BLM office is closed for business on the day of an Oil and Gas Lease Sale, the Sale will be cancelled and rescheduled at a later date. Please call for recorded information on closures at (703) 440-1777.

Every effort will be made to post the information on delays or closed for business on the main entrance exterior doors of the building.

Your safety and the safety of our BLM employees is our major concern. 

Payment due on the day of the sale: Payment is due on the day of the sale. You cannot withdraw a bid. For each parcel you win, you must pay the minimum bonus bid of $2 per acre or fraction of an acre, the first year’s advance rental of $1.50 per acre or fraction of an acre, and a non-refundable administrative fee of $150. You must pay these monies by 4:30 p.m. June 14, 2012 at the sale site. Any remaining balance on the bonus bid is due

by June 28, 2012 (10 business days after the sale) at BLM-ES’ Accounts Department.

The minimum monies owed on the day of the sale for a winning bid are monies owed to the United States (43 CFR 3120.5-2(b) and 43 CFR 3120.5-3(a)). If payment of the minimum monies owed the day of the sale is not received by the date and time above, the BLM will issue a bill for the monies owed. If payment is not received by the bill due date, a demand letter will be sent to you that will include additional fees. If payment is not received as requested by the demand letter, the U.S. will immediately pursue collection by all appropriate methods, and when appropriate, collect late fees, interest, administrative charges, and on past-due amounts assess civil penalties. “All appropriate methods” include, but are not limited to, referral to collection agencies and credit reporting bureaus; salary or administrative offset; offset of Federal and state payments, including goods or services; Federal and state tax refund offset; and retirement payment offset. Debts may be sent to the Internal Revenue Service and charged as income to you on Form 1099C, Cancellation of Debt (Federal Claims Collection Act of 1966, as amended; The Debt Collection Improvement Act of 1996; 31 CFR part 285).



Forms of payment: You can pay by personal check, certified check, money order, or credit card (Visa, MasterCard, American Express, and Discover cards only). Cash is unacceptable. If you plan to make your payment using a credit card, you should contact your bank prior to the sale and let them know you will be making a substantial charge against your account. If you pay by check, please make checks payable to: Department of the Interior - BLM. If a check you have sent to us in the past has been returned for “insufficient funds” we will require that you give us a guaranteed payment, such as a certified check.

Effective June 1, 2012, BLM will not accept credit card or debit card payments to the Bureau for any amount equal to or greater than $50,000.00 for any purpose. We also will not accept aggregate smaller amounts to bypass this requirement. We

4

encourage you to make any payments of $50,000.00 or more by Automated Clearing House (ACH).

How do I calculate my bonus bid for parcels where the U. S. only owns a fractional mineral interest?

If the United States owns less than 100 percent of the oil and gas rights in a parcel, the parcel will reflect the percentage of interest the United States owns. You must calculate your bonus bid and advance rental payment on the gross acreage in the parcel. For example, if the U.S. owns 50 percent of the oil and gas in a 100.48 acre parcel, the minimum bid is $202 (101 acres x $2) and the advance rental due is $151.50 (101 acres x $1.50).

What are the terms and conditions of a lease issued as a result of this sale?  Term of the lease: A lease is issued for a primary term of 10 years. It continues beyond that if it has production in paying quantities. Advance rental at $1.50 per acre or fraction of an acre for the first 5 years ($2.00 per acre after that) is due on or before the anniversary date each year until production begins. We charge a royalty of 12.5 percent of the value of oil or gas removed or sold from a lease. You will find other lease terms on our standard lease form (Form 3100-11, October 2008).  Stipulations: Some parcels are subject to surface use stipulations. They are requirements or restrictions on how you conduct operations. These stipulations are included in the parcel descriptions on the attached list. They become part of the lease and supersede any inconsistent provisions in the lease form.  Bid Form: Successful bidders must submit a signed competitive lease bid form (Form 3000-2, August 2007) with their payment on the day of the auction. This form is a legally binding offer by a prospective lessee to accept a lease and all applicable terms and conditions. We recommend you get the form and complete part of it before the auction, leaving part to be filled out at the auction. Your completed bid form certifies that you are qualified to be a lessee under our regulations at 43 CFR Part 12 and Subpart 3102.5-2. It also certifies that you comply with 18 U.S.C. 1860, a law prohibiting unlawful combinations, intimidation of or collusion among bidders.

Fillable bid forms are available online at: http://www.blm.gov/es/st/en/prog/minerals/frequently_used_oil.html  Issuance of a lease: We (the BLM) will issue your lease within 60 days of the sale date by signing the lease form provided you have paid your fees and rent. The effective date of a lease is the first day of the month following the month in which we sign the lease. We can make it effective the first day of the month in which we sign it, if we receive your written request before we sign the lease.

How do I file a noncompetitive over-the-counter offer after the auction?

You may be able to get a noncompetitive lease for a parcel we offered if –  we did not withdraw it from the sale;

5

 

it did not receive a bid; and it does not have a noncompetitive pre-sale offer pending.

Parcels that meet all these criteria are available on a first-come, first-served basis for two years from the date of the auction. If you want to file a noncompetitive offer for unsold parcel immediately after the sale or on the next business day, give us the items listed below under presale offers in a sealed envelope marked “Noncompetitive Offer.” We consider all noncompetitive offers that we receive on the day of the sale and the first business day after the sale as filed at the same time (simultaneously). Where an unsold parcel receives more than one simultaneous filing, we will hold a public drawing in our Public Room to determine first priority.

How do I file a noncompetitive “pre-sale” offer?

Per Federal Regulations 43 CFR 3110.1(a), you can file a noncompetitive pre-sale offer for lands that –  are available,  have not been under lease during the previous one-year period; or  have not been included in a competitive lease sale within the previous two-year period.

If no bid is received on them, your pre-sale offer gives you priority over any offer filed after the auction. In the list of parcels attached to this notice, we have used an asterisk to mark any parcel that has a pending pre-sale offer. By filing a pre-sale offer, you are consenting to all terms and conditions of the lease, including any stipulations for listed on the attachment to this notice.

To file a ―pre-sale offer, you must send us --: A standard lease form (Form 3100-11, October 2008), which is properly filled out, as  required by the regulations under 43 CFR 3110;  the first year’s advance rent in the amount of Rental $1.50 per acre or fraction thereof; and;  a non-refundable administrative fee in the amount of $380.00.

NOTE: You cannot file a “pre-sale” offer for any of the lands included in this Notice.

Can I protest BLM’s decision to offer the lands in this Notice for lease?

Yes. Under Federal Regulations 43 CFR 3120.1-3, you may protest the inclusion of a parcel listed in this sale notice. All protests must meet the following requirements:  Protests must be filed within 30 calendar days of the posting date of the sale. We must receive a protest no later than close of business on April 16, 2012. The protest must also include any statement of reasons to support the protest. We will dismiss a late-filed protest or a protest filed without a statement of reasons.  A protest must state the interest of the protesting party in the matter.  You may file a protest either by mail in hardcopy form or by fax. You may not file a protest by electronic mail. A protest filed by fax must be sent to (703) 440-1551. A protest sent to a fax number other than the fax number identified or a protest filed by electronic mail will be dismissed;

6

 If the party signing the protest is doing so on behalf of an association, partnership or corporation, the signing party must reveal the relationship between them. For example, unless an environmental group authorizes an individual member of its group to act for it, the individual cannot make a protest in the group’s name.

If BLM receives a timely protest of a parcel advertised on this Sale Notice, how does it affect bidding on the parcel?

We will announce receipt of any protests at the beginning of the sale. We will also announce a decision to either withdraw the parcel or proceed with offering it at the sale.

If I am the high bidder at the sale for a protested parcel, when will BLM issue my lease?

We will make every effort to decide the protest within 60 days after the sale. We will issue no lease for a protested parcel until the State Director makes a decision on the protest. If the State Director denies the protest, we will issue your lease concurrently with that decision.

If I am the successful bidder of a protested parcel, may I withdraw my bid and receive a refund of my first year’s rental and bonus bid?

No. In accordance with Federal Regulations (43 CFR 3120.5-3) you may not withdraw your bid.

If BLM upholds the protest, how does that affect my competitive bid?

If we uphold a protest and withdraw the parcel from leasing, we will refund your first year’s rental, bonus bid and administrative fee. If the decision upholding the protest results in additional stipulations, we will offer you an opportunity to accept or reject the lease with the additional stipulations prior to lease issuance. If you do not accept the additional stipulations, we will reject your bid and we will refund your first year’s rental, bonus bid and administrative fee.

If BLM’s decision to uphold the protest results in additional stipulations, may I appeal that decision?

Yes. An appeal from the State Director’s decision must meet the requirements of Title 43 CFR §4.411 and Part 1840.

Can I appeal BLM’s decision to deny my protest?

Yes. An appeal from the State Director’s decision must meet the requirements of Title 43 CFR §4.411and Part 1840.

Can I withdraw my bid if the protestor files an appeal?

No. If the protestor appeals our decision to deny the protest, you may not withdraw your bid.

We will issue your lease concurrently with the decision to deny the protest. If resolution of the

7

appeal results in lease cancellation, we will authorize refunds of the bonus bid, rental and administrative fee, if— There is no evidence that the lessee(s) derived any benefit from possession of the lease  during the time they held it, and;  There is no indication of bad faith or other reasons not to refund the rental, bonus bid and administrative fee.

Where can I get copies of the BLM forms mentioned in the Notice?

Form 3100-11 (October 2008), Offer to Lease and Lease for Oil and Gas, and Form 3000-2 (August 2007), Competitive Oil and Gas or Geothermal Resources Lease Bid may be downloaded from the following Forms Central web address: http://www.blm.gov/blmforms/.

When is BLM-ES’ next competitive sale date?

The next sale is tentatively scheduled for September 13, 2012. We will notify the public in advance should this date change.

Who should I contact if I have questions regarding this lease sale?

For more information, please contact the Information Access Center on (703) 440-1600.

/s/ Kemba K. Anderson-Artis Kemba K. Anderson-Artis Supervisory Land Law Examiner Division of Natural Resources

8

Enhanced Bidder Registration Form Bidder Registration Form Competitive Oil and Gas Lease Sale By completing this form, I certify that the undersigned, or the principal party whom the undersigned is acting on behalf of, is in compliance with the applicable regulations and leasing authorities governing a bid and subsequent lease. I certify that any bid submitted by the undersigned or on behalf of the principal party is a good faith statement of intention by the undersigned or the principal party to acquire an oil and gas lease on the offered lands. Further, I acknowledge that if a bid is declared the high bid, it will constitute a legally binding commitment to execute the Bureau of Land Management’s Form 3000-2, Competitive Oil and Gas or Geothermal Resources Lease Bid, and to accept the lease.

In addition, if a bid is declared the high bid, the undersigned or the principal party will pay to the Bureau of Land Management (BLM) by the close of official business hours on the day of the auction, or such other time as may be specified by the authorized officer, an amount at least equal to the minimum monies owed the day of sale for that bid, as set out in applicable regulations. The undersigned and the principal party acknowledge that these monies are due to the Bureau of Land Management as a result of winning the auction. Further, the undersigned and the principal party understand that if payment is not received by the due date, the BLM will issue a bill for monies owed, and if payment is not received, the United States will pursue collection by all appropriate methods, and as appropriate, will assess late fees, civil penalties, interest, administrative charges, and penalties on past due amounts (Federal Claims Collection Act of 1966, as amended; The Debt Collection Improvement Act of 1996; 31 CFR part 285).

I certify that neither I nor the principal party whom I represent owes the United States any monies that were due the day of sale from any oil and gas lease auction conducted by any Bureau of Land Management office.

It is a crime under 18 U.S.C. 1001 and 43 U.S.C. 1212 for any person to knowingly and willfully make any false, fictitious, or fraudulent statements or representations as to any matter within the jurisdiction of the government. Any such offense may result in a fine or imprisonment for not more than 5 years, or both.

It is a crime under 30 U.S.C. 195 (a) and (b) to organize or participate in any scheme to defeat provisions of the mineral leasing regulations or for any person to obtain money or property by means of false statements regarding a person’s ability to obtain a lease. Any person who knowingly violates this provision shall be punished by a fine of not more than $500,000, imprisonment for not more than 5 years, or both.

A separate registration is required for each company or individual you are representing.

Please fill in the company/individual name and address as it would appear on any issued lease. We will send a copy of the lease and billing notices to the name and address as shown below. (NOTE: Please use the same lessee name and address information on BLM Form 3000-2.) ___________________________ Bidder Number (leave blank) Lessee Name: _______________________________________________________________________________________ Mailing Address: ____________________________________________________________________________________ City: ______________________________________________________________________________________________ State: ________________________________________ Zip Code: ___________________________ Bidder Name: _________________________________ Phone number: ________________________________ (including area code) Relationship to lessee: ________________________________________________________________________________ (Self, Agent, Attorney-in-fact, President, etc.) _____________________________________________ ____________ ______ Signature Date For BLM Use Only: Type of identification: ______________________________________________________

9

HOTEL INFORMATION Holiday Inn 6401 Brandon Avenue Springfield, Virginia (703) 644-5555

Comfort Inn 6560 Loisdale Court Springfield, Virginia (703) 942-0140

Hampton Inn Ramada Plaza Hotel 6550 Loisdale Court 4641 Kenmore Avenue Springfield, Virginia Alexandria, Virginia (703) 922-9000 (703) 922-9000 Hotel shuttle to National Airport and Metro Subway

Directions to Bureau of Land Management – Eastern States: From Washington, DC: take I-395 South through the Springfield Interchange to where I-395 becomes I-95. Continue on I-95 to Backlick/Fullerton Road Exit 167. At the light turn right onto Fullerton Road. At the SECOND Stoplight, turn left onto Boston Boulevard (COSTCO to the left). Eastern States is approximately 0.3 miles on the right. Public parking is behind the building.

From Maryland: Take I-95/I-495, Capital Beltway's Inner Loop, across the Wilson Bridge to Alexandria, VA. Continue on I-95/I-495 to the I-395 Interchange; FOLLOW I-95, SOUTH, towards Richmond, VA. Take Exit 167, Backlick Road/Fullerton Road - the second exit south of the Beltway. At the FIRST Stoplight, Turn RIGHT onto Fullerton Road. At the SECOND Stoplight, Turn LEFT onto Boston Boulevard. Eastern States office (7450 Boston Boulevard) is about 0.3 miles on your right. Public parking is behind the building.

Traveling North I-95 in Virginia: Take I-95 NORTH, to Exit 166-B, Backlick Road/Fullerton Road, just past the fuel tank farm. Merger onto the Fairfax County Parkway. Take exit for Boudinot Drive. At the FIRST Stoplight, Turn RIGHT onto Fullerton Road. At the FIRST Stoplight, Turn LEFT onto Boston Boulevard. Eastern States office (7450 Boston Boulevard) is about 0.3 miles on your right. Public parking is behind the building.

10

NOTICE TO LESSEE Provisions of the Mineral Leasing Act (MLA) of 1920, as amended by the Federal Coal Leasing Amendments Act of 1976, affect an entity’s qualifications to obtain an oil and gas lease. Section 2(a)(2)(A) of the MLA, 30 U.S.C. 201(a)(2)(A), requires that any entity that holds and has held a Federal Coal Lease for 10 years beginning on or after August 4, 1976, and which is not producing coal in commercial quantities from each such lease, cannot qualify for the issuance of any other lease granted under the MLA. Compliance by coal lessees with Section 2(a)(2)(A) is explained in 43 CFR 3472.

In accordance with the terms of this oil and gas lease with respect to compliance by the initial lessee with qualifications concerning Federal coal lease holdings, all assignees and transferees are hereby notified that this oil and gas lease is subject to cancellation if: (1) the initial lessee as assignor or as transferor has falsely certified compliance with Section 2(a)(2)(A) because of a denial or disapproval by a State Office of a pending coal action, i.e., arms-length assignment, relinquishment, or logical mining unit, the initial lessee as assignor or as transferor is no longer in compliance with Section 2(a)(2)(A). The assignee or transferee does not qualify as a bona fide purchaser and, thus, has no rights to bona fide purchaser protection in the event of cancellation of this lease due to noncompliance with Section 2(a)(2)(A).

Information regarding assignor or transferor compliance with Section 2(a)(2)(A) is contained in the lease case file as well as in other Bureau of Land Management records available through the State Office issuing this lease.

11

ALABAMA CONECUH NATIONAL FOREST ES-001-06/12 ALES 057412 ACQ Alabama, Escambia County, Conecuh NF T 1N, R 13E, St. Stephens Meridian Section 33, All of E2SW less 6.69 acres quitclaimed to Claude A. Crosby in NESW. 73.31 Acres $111.00 Rental Subject to: FS Lease Notice Nos. 3 and 4 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1521

TALLADEGA NATIONAL FOREST ES-002-06/12 ALES 057413 PD Alabama, Cleburne County, Talladega NF T 14 S, R 11E, Huntsville Meridian Section 4, S2SW; Section 5, NWNW; Section 6, SWSE, S2SW; Section 9, NWNW; Section 20, NESE; Section 30, NENW. 360.93 Acres $541.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-003-06/12 ALES 057414 PD Alabama, Perry County, Talladega NF T 21N, R 10E, St. Stephens Meridian Section 34, NWSW. 41.18 Acres $63.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

12

ES-004-06/12 ALES 057415 ACQ Alabama, Cleburne County, Talladega NF T 14S, R 11E, Huntsville Meridian Section 4, E2, N2SW, E2NW; Section 5, NWNE, S2SE, SW, E2NW, SWNW; Section 6, NE, E2SE, NWSE, N2SW, NW; Section 7, All. 2,048.59 Acres $3,073.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-005-06/12 ALES 057416 ACQ Alabama, Cleburne County, Talladega NF T 14 S, R 11E, Huntsville Meridian Section 8, All; Section 9, NWNE, S2, E2NW, SWNW; Section 16, N2NE, SWNE, W2; Section 17, All. 2,197.76 Acres $3,297.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-006-06/12 ALES 057417 ACQ Alabama, Cleburne County, Talladega NF T 14 S, R 11E, Huntsville Meridian Section 18, All; Section 19, All; Section 20, N2, NWSE, SW; Section 21, N2, SE less 1 acres for Pilgrim Rest church described as follows: start at NE Corner of SWNE, run South along forty line 9 chains to NE corner of Pilgrim Rest property, thence West 3.16 chains; thence South 3.16 chains; thence East 3.16 chains; thence North 3.16 chains; to point of beginning; Section 22, SWSW. 2,330.82 Acres $3,496.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

13

ES-007-06/12 ALES 057418 ACQ Alabama, Cleburne County, Talladega NF T 14 S, R 11E, Huntsville Meridian Section 30, E2, SW, S2NW, NWNW; Section 31, All. 1,258.56 Acres $1,888.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-008-06/12 ALES 057419 ACQ Alabama, Calhoun County, Talladega NF T 15S, R 9E, Huntsville Meridian Section 1, E2, SESW, E2NW less and except two parcels described as: Beginning at a point which is the SW corner of the SENW of said Section 1, thence S 89°52’E, a distance of 274.60’, thence N00°25’W, a distance of 21.0’, thence N 88°40’W, a distance of 274.58’, thence S00°08’E a distance of 26.75’, to the point of beginning, containing 0.150 acres, more or less. Also: Beginning at a point which is the NW corner of said Section 1, thence east a distance of 1309.15’, thence S00°08E’, a distance of 1541.34’, to a point, said point being the true point of beginning of the boundary lines of the parcel of land to be described herein, thence 81°50’E, a distance of 111.51’, thence N48°26’E a distance of 87.00’, thence N43°02’E, a distance of 303.47’, thence N58°47’E, a distance of 122.67’, thence N 57°55’E, a distance of 158.51’, thence N37°00’E, a distance of 568.81’, thence N71°21’W, a distance of 62.20’, thence S 62°14’W, a distance of 462.25’, thence S 45°51’W, a distance of 244.60’, thence S 69°53’W, a distance of 226.00’, thence N16°08’W, a distance of 330.83’, thence S20°13’W, a distance of 722.80’, to the point of beginning of the boundary lines of the parcel of land described herein, containing 7.044 acres. That part of Tract 355a lying in the NWNW containing 14.26 acres. All of tract 355b described as being that part of the SWNW and the NWSW and being that part of Sec. 1 lying above mean datum plane 772.63’ MSC described as follows: Beginning at a point on the E line of the SWNW of Section 1, T15S, R9E 1591.34’S of the NE corner of the NWNW of Sec. 1 thence continue S00°08’E along the E line of the SWNW, Sec. 1, a distance of 993.74’, thence S89º52’W 200.00’, to point on mean datum plane of 772.63’ MSC, thence a chord traverse and distance on or near datum plane as follows: S56º56’W 800.00’, thence N29º52’E 800.00’, thence N40º08’W 800.00’, thence S75º08’E 600.00’, thence N55º20’E 492.41’ to the point of beginning, containing 14.378 acres; Section 12, NE, NENW, All of tract 459 acres described as: Beginning at an existing iron marking the SW corner of Sec. 12, T15S, R9E, thence N02º06’W along the W line of said section 1327.42’ to the NW corner of the SWSW of Sec. 12, thence S89º45’E along the N line of the SWSW 718.56’ to the western line of the Shoal Creek Watershed Site No. 6 at elevation line sea datum elevation 772.63’ purchased by the City of Anniston Water Works and Sewer Board recorded in Deed Book 1342 at pages 858 thru 861, thence meander along pool line as follows: Pt. 3 to Pt. 4 S00º18’E 499.18’,

14

Pt. 4 to Pt. 5 S56º02’W 200.00’, Pt. 5 to Pt. 6 S43º20’W 206.40’, Pt. 6 to Pt. 7 S33°58’E 86.10’ Pt. 7 to Pt. 8 S40º44’E 133.33’, Pt. 8 to Pt. 9 N63º52’E 169.42’, Pt. 9 to Pt. 10 N82º10’E 134.47’, Pt. 10 to Pt. 11 S15º33’E 300.56’, Pt. 11 to Pt. 12 N25° 38’E 200.00’ Pt. 12 to Pt. 13 N08° 16’W 146.30’ Pt. 13 to Pt. 14 N40º00’W 148.90’, Pt. 14 to Pt. 15 N01º18’W 95.85’, N80º04’E 236.72’ Pt. 15 to Pt. 16 Pt. 17 to Pt. 18 S14º11E’E 346.10’, Pt. 18 to Pt. 19 N16º31’E 133.22’, Pt. 19 to Pt. 20 N41º30’E 428.16’, Pt. 20 to Pt. 21 N34º57’W 296.70’, Pt. 21 to Pt. 22 N87º35’W 114.55’, Pt. 22 to Pt. 23 N15º26’E 335.78’, Pt. 23 to Pt. 24 N56º46’E 241.45’, Pt. 24 to Pt. 25 S41º56’E 156.98’, Pt. 25 to Pt. 26 N28º17’E 298.52’, S83º39’E 386.21’, Pt. 26 to Pt. 27 Pt. 27 to Pt. 28 S64º48’E 226.48’, Pt. 28 to Pt. 28-A, thence S57º18’E along said pool line a distance of 27.09’ to the E line of the NESW of Sec. 12, T15S, R9E, thence S01º 29’43”E along the E line of NESW and the SESW to an existing lighter knot and rock corner marking the SE corner of the SESW a distance of 1733.42’, thence N87º36’W along the S line Sec. 12, a distance of 2507.66’ to the point of beginning.

Also a tract beginning at an existing lighter knot and rock pile marking the SW corner of SWSE of Sec. 12, T15S, R9E, thence N01º29’43”W along W line of the SE Sec. 12 a distance of 1733.42’ to a point where the W line of the SE Sec. 12 intersects the Shoal Creek Watershed at elevation 772.63’ sea level datum being the property purchased by the City of Anniston Water Works and Sewer Board as recorded in Book 1342 at Pages 858 thru 861 said point marked on attached plat at Point 28-A, thence meander southerly along the city of Anniston Water Works and Sewer Board’s Shoal Creek Watershed elevation line 772.63’ as follows: Pt. 28-A to Pt. 29 S 57º18’E 130.61’, Pt. 29 to Pt. 30 S 40º23’E 111.08’, Pt. 30 to Pt. 31 S06º48’E 222.65’, Pt. 31 to Pt. 32 S61º51’E 194.19’, Pt. 32 to Pt. 33 S26º26’E 133.87’, Pt. 33 to Pt. 34 S08º27’W 124.11’, Pt. 34 to Pt. 35 S26º01’W 378.53’, Pt. 35 to Pt. 36 S57º08’E 68.73’, Pt. 36 to Pt. 37 N23º11’E 143.39’,

15

Pt. 37 to Pt. 38 N50º23’E 217.45’, Pt. 38 to Pt. 39 S84º51’E 66.06’, Pt. 39 to Pt. 40 S26º07’E 264.67’, Pt. 40 to Pt. 41 S12º34’E 268.74’, Pt. 41 to Pt. 42 S56º16’E 233.13’, Pt. 42 to Pt. 43 S43º00’E 211.54’, Pt. 43 to Pt. 44, thence S32º52’E along elevation line 772.63’ a distance of 164.29’ to the S line of the SWSE of Sec. 12, T15S, R9E, said point being 89.64’ W of a lighter knot and rock pile that existed in the year of 1971 but has been destroyed

by Watershed and is underwater, thence N89º22’W along the S line of the SWSE of Sec. 12 a distance of 1159.38’ to the point of beginning. Containing 98.47 acres, more or less; Section 13, E2, E2W2.

1,162.46 Acres $1,744.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-009-06/12 ALES 057420 ACQ Alabama, Calhoun County, Talladega NF T 15S, R 9E, Huntsville Meridian Section 24, W2E2, E2SE, E2W2, W2NW, NWSW; Section 25, E2, E2W2.

1,078.79 Acres $1,618.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-010-06/12 ALES 057421 ACQ Alabama, Calhoun County, Talladega NF T 15S, R 9E, Huntsville Meridian Section 36, E2, SW, NENW. 542.42 Acres $814.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

16

ES-011-06/12 ALES 057422 ACQ Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 1, N2; Section 2, NE less 3.89 acres parcel of land lying northerly of a drainage ditch in NENE, N2SW, NW; Section 3, E2, SW, E2NW, NWNW. Alabama, Cleburne County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 1, S2.

Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 4, NWSW, SWNW; Section 5, E2, S2SW, NESW, NW. 2,319.01 Acres $3,480.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-012-06/12 ALES 057423 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 8, W2NE, S2; Section 9, E2NE, S2SE, SW, SWNW less 8.92 acres in NE corner.

Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 10, NWNE, S2, NW; Section 11, N2.

Alabama, Cleburne County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 11, S2; Section 12, All. 2,553.24 Acres $3,831.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

17

ES-013-06/12 ALES 057424 ACQ Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 13, All; Section 14, All; Section 15, All. 1,918.44 Acres $2,878.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation #1 (Section 14) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-014-06/12 ALES 057425 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 16, E2, E2SW, NWSW, NW. 602.78 Acres $904.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-015-06/12 ALES 057426 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 17, All; Section 20, N2, SW, NWSE, SESE, SWSE less 2 acres school lot described as: Beginning at a point on west boundary line of said forty 660’ north of south boundary line of said section 20 and running thence north 210’ to a stake, thence east 420’, thence south 210’ thence west 420’ to the point of the beginning.

1,244.37 Acres $1,867.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-016-06/12 ALES 057427 ACQ Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 21, E2, SW, S2NW, NWNW; Section 22, All. 1,243.28 Acres $1,866.00 Rental Subject to: FS Lease Notice No. 3

18

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-017-06/12 ALES 057428 ACQ Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 23, All; Section 24, E2NE, SE, NW, SW less 13.30 acres off the E side (a strip of land 3.32 chains, wide); Section 25, NE, N2SE, SWSE, Diagonal NW2SESE, S2SW, NESW, E2NW, NWNW; Section 26, W2NE, NW. 1,959.85 Acres $2,940.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation #1 (Section 25) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-018-06/12 ALES 057429 ACQ Alabama, Clay County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 27, All; Section 28, N2NE, SENE, S2, N2NW. 1,160.16 Acres $1,741.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-019-06/12 ALES 057430 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 29, All. 642.56 Acres $964.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-020-06/12 ALES 057431 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 32, SE. 159.77 Acres $240.00 Rental Subject to: FS Lease Notice No. 3

19

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-021-06/12 ALES 057432 ACQ Alabama, Talladega County, Talladega NF T 18S, R 7E, Huntsville Meridian Section 35, W2, W2E2, NENE, W2SENE, W2NESE, NESENE; Section 36, W2NWNE, N2NW. 669.06 Acres $1,005.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-022-06/12 ALES 057433 ACQ Alabama, Clay County, Talladega NF T 21 S, R 6E, Huntsville Meridian Section 6, N2, E2SE, SW; Section 7, All. 1,198.30 Acres $1,798.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-023-06/12 ALES 057434 ACQ Alabama, Clay County, Talladega NF T 21 S, R 6E, Huntsville Meridian Section 17, N2NW, SWNW; Section 18, All. 759.12 Acres $1,140.00 Rental Subject to: BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-024-06/12 ALES 057435 ACQ Alabama, Perry County, Talladega NF T 20N, R 9E, St. Stephens Meridian Section 1, N2NE, NENW; Section 13, That part of Tract 0-37 lying in the SW; Section 14, SE, E2NW; Section 23, N2NENE, NWNE. 456.46 Acres $685.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

20

ES-025-06/12 ALES 057436 ACQ Alabama, Dallas County, Talladega NF T 20N, R 10E, St. Stephens Meridian Section 1, E2NE, SE, NESW, SWNW; Section 2, SENE, N2SE, SESE, NESW, S2SWSW, N2NWSW, E2SENW; Section 3, SENE, E2SE, S2SW, W2SENW, N2NW, NWNE less 0.98 acres in SE corner; Section 4, N2NE, SWNE, W2SENE, S2, NW; Section 5, Part SENE (a strip on the E side of “40” 5 chains wide less exception for Hepsahah Church and Cemetery 7.89 acres, less 3.0 acres quitclaimed to Woodie Melton); Section 10, NENE, S2NE, SE, W2.

2,027.83 Acres $3,042.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-026-06/12 ALES 057437 ACQ Alabama, Dallas County, Talladega NF T 20N, R 10E, St. Stephens Meridian Section 11, All less 2.0 acre rectangle lying in the SE corner NENWNE W of road; Section 12, E2, S2SW, S2N2SW, SENW, N2NW; Section 13, E2NE, SWNE, N2SE, SWSE, SW; Section 14, N2NE; Section 15, NWNE, NWSE, N2SW, NWNW; Section 16, E2NENE, E2NWNENE; Section 17, S2SW, NWSW; Section 18, SENE, NESE. 2,188.50 Acres $3,283.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-027-06/12 ALES 057438 ACQ Alabama, Dallas County, Talladega NF T 20N, R 10E, St. Stephens Meridian Section 15, SWNE, SENW, S2SW; Section 16, S2SE less and except 5 acres in the NWSWSE. 235.00 Acres $352.50 Rental 50% U.S. Mineral Interest Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

21

ES-028-06/12 ALES 057439 ACQ Alabama, Dallas County, Talladega NF T 20N, R 10E, St. Stephens Meridian Section 22, W2NE, Pt. NENE (22.20 acres) lying S and E of Creek, S2, E2NW; Section 24, NE, N2NESE, NENW; Section 25, N2SE, 7.78 acres SWSW lying W of Buck Creek; Section 26, W2; E2SE less and except that part lying E of Buck Creek, more particularly described as follows: Beginning at the quarter section corner on the E line Sec. 26, T20N, R10E, which is also the NE corner of E2SE, thence W 6.00 chains. to a point in the centerline of Buck Creek and on the N line of the E2SE, thence in a southerly direction along the centerline of Buck Creek approximately 27.00 chains to apart in the E line of the E2SE, thence N 22.10 chains to the place of beginning, containing 9.83 acres , more or less W2SE; Section 27, NE, S2, E2NW; Section 28, SE, NESW. 2,036.93 Acres $3,055.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-029-06/12 ALES 057440 ACQ Alabama, Dallas County, Talladega NF T 20N, R 10E, St. Stephens Meridian Section 33, E2, E2NW; Section 34, All; Section 35, N2, SE, E2SW, Pt. SWSW S and E of road (33.42 acres); Section 36, SENE; Part S2 lying E of Creek (252.13 acres); Part N2NWSW described as follows: Beginning at the quarter section corner on the line of Sec. 36 T20, R10E which is also the NW corner of the N2NSW, thence E 19.30 chains to the centerline of Buck Creek 1.70 chains more or less, to the point of intersection of E line of the N2NWSW with the centerline of the Creek; thence S 8.20 chains to a point in the centerline of Little Oakmulgee Creek 1.70 chains more or less, to the point of intersection of the E line of the N2NWSW, thence along the centerline of Little Oakmulgee Creek in a southwesterly direction 1.30 chains , to a pt. in the SW corner of the N2NWSW, thence N 10.03 chains to the place of beginning, containing 19.81 acres more or less; Part of W2NW lying W of Buck Creek 71.68 acres, Part S2NWSW and SWSW lying W of Little Oakmulgee Creek 43.25 acres.

2,060.54 Acres $3,091.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

22

ES-030-06/12 ALES 057441 ACQ Alabama, Perry County, Talladega NF T 21N, R 7E, St. Stephens Meridian Section 1, W2SE, SW, W2NW, NENW; Section 2, NE, N2SE, SWSE. 603.11 Acres $906.00 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-031-06/12 ALES 057442 ACQ Alabama, Perry County, Talladega NF T 21N, R 7E, St. Stephens Meridian Section 12, W2NW. 72.07 Acres $109.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-032-06/12 ALES 057443 ACQ Alabama, Perry County, Talladega NF T 21N, R 8E, St. Stephens Meridian Section 4, NWNE, N2NW; Section 5, N2NE, SWNW; Section 8, NW; Section 12, That part of NE lying East and South of River, S2S2; Section 13, All less E2SE and less 2 acres in SW corner SENE. 840.25 Acres $1,261.50 Rental Subject to: FS Lease Notice No. 3 No Surface Occupancy Stipulation #2 (Sec. 12) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-033-06/12 ALES 057444 ACQ Alabama, Perry County, Talladega NF T 21N, R 10E, St. Stephens Meridian Section 4, W2NW; Section 6, W2NW; Section 10, S2S2SW, E2SWSE, SESE. 251.27 Acres $378.00 Rental Subject to: FS Lease Notice No. 3

23

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-034-06/12 ALES 057445 ACQ Alabama, Perry County, Talladega NF T 21N, R 10E, St. Stephens Meridian Section 13, SWSE, That part of S2SWSW lying south of Oakmulgee Creek; Section 16, All; Section 17, NWSW; Section 18, SWNE, NESE; Section 19, Part SESW described as follows: Begin at SE corner; thence North 5.0 chains; thence West 16.68 chains; thence South 5.0 chains; thence East 16.68 chains to point of beginning; Section 20, SWNE, NWSE, NESW, S2NW, W2NWNW; Section 22, NWNE, W2SW, NW; Section 23, S2SW, NESW, SWSE less 0.309 acres quitclaimed to H.T. Smith on March 13, 1985; Section 24, NE, S2, E2NW, NWNW. 2,078.38 Acres $3,118.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-035-06/12 ALES 057446 ACQ Alabama, Perry County, Talladega NF T 21N, R 10E, St. Stephens Meridian Section 25, N2NE, S2SE, SW, E2E2NW; Section 26, S2SENE, E2SE, SWSE, S2SW, NWSW, SWNW; Section 27, E2SE, NWSE; Section 28, NE, N2NW, N3/4S2NW, NWSW, S2SW, W2SE; Section 30, W2NE, NENW. 1,394.23 Acres $2,092.50 Rental Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations ES-036-06/12 ALES 057447 ACQ Alabama, Perry County, Talladega NF T 21N, R 10E, St. Stephens Meridian Section 33, NESE, SWSE, E2SW; Section 34, S2SWSE, SESW, SWSW; Section 35, NE, NESE, W2NW, NENW; Section 36, All. 1,268.99 Acres $1,903.50 Rental

24

Subject to: FS Lease Notice No. 3 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

ARKANSAS PRIVATE SURFACE, FEDERAL MINERALS ES-037-06/12 ARES 057448 ACQ Arkansas, Conway County, BLM/FFMC T7N, R15W, 5th Principal Meridian Section 6, NESW, NWSE lying West Cypress Creek and beginning at the NW corner of the NWSE; Thence East 11.5 chains to said Cypress Creek; Thence with the channel of said creek South to the South line of said NWSE; Thence West 8 chains to the SW corner of said tract; Thence North to the point of beginning, containing, in the aggregate, 57.50 acres.

57.50 Acres $87.00 Rental 25% U.S. Mineral Interest Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

EOI 1146 Note: Govan 1-6H is the trespass well located in 7N-15W-section 6 operated by Chesapeake Operating Inc. In addition to joining the Communization Agreement, ARES 56605, there may be cost recovery fees, or production data disclosure associated with the unauthorized wellbores on the above named tract.

The lands included in this parcel are fully committed to Communization Agreement (CA) ARES 56605, approved effective July 2, 2010.

The successful bidder is required to file evidence of having entered into an agreement with the CA operator for the development and operation of the subject lands under the terms and provisions of the approved communization agreement.

The successful bidder should immediately contact the CA Operator Chesapeake Operating, Inc., P.O. 18496, Oklahoma City, OK 73154. In order to join the CA, the operator will give instructions about executing copies of the joinder agreement. Five duplicate originally signed copies of the joinder agreement must be furnished to the BLM, Southeastern States Field Office, 411 Briarwood Drive, Suite 404, Jackson, MS 39206.

When the evidence is filed with the above office, a copy of the transmittal letter must be filed in the State Office in Springfield, Virginia.

OUACHITA NATIONAL FOREST ES-038-06/12 ARES 057449 PD

25

Arkansas, Sebastian County, Ouachita NF T 4N, R 32W, Fifth Principal Meridian Section 34, SE. 160.00 Acres $240.00 Rental Subject to: FS No Surface and Occupancy Stipulation #1 FS Controlled Surface Use Stipulation #1a FS Lease Notice No. 3 and 4 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI #1452

LOUISANA PRIVATE SURFACE, FEDERAL MINERALS ES-039-06/12 LAES 057550 PD Louisiana, Desoto Parish, BLM T11N, R12W, Louisiana Meridian Section 12, That certain tract or parcel of land containing 21.38 acres, more or less, situated in the South Half of the Northwest quarter of Southeast quarter (S2NWSE) of Section 12. Said tract being more particularly described as lot 2 on that certain Bureau of Land Management Survey Plat prepared for the Legal Representatives of Pierre Dolet

by George K. Bradford, surveyor, and approved by Surveyor General, Jacques A Gla, dated March 4, 1882.

21.38 Acres $33.00 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

EOI 1447 The lands included in this parcel are fully committed to Communization Agreement (CA) LAES 57039, approved effective March 9, 2010.

The successful bidder is required to file evidence of having entered into an agreement with the CA operator for the development and operation of the subject lands under the terms and provisions of the approved communization agreement.

The successful bidder should immediately contact the CA Operator Chesapeake Energy Corporation, P.O. Box 18496, Oklahoma City, OK 73154. In order to join the CA, the operator will give instructions about executing copies of the joinder agreement. Five duplicate originally signed copies of the joinder agreement must be furnished to the BLM, Southeastern States Field Office, 411 Briarwood Drive, Suite 404, Jackson, MS 39206.

When the evidence is filed with the above office, a copy of the transmittal letter must be filed in the State Office in Springfield, Virginia.

26

ES-040-06/12 LAES 057551 PD Louisiana, DeSoto Parish, BLM T15N, R10W, Louisiana Meridian Section 5, Lots 12 and 13.

35.64 Acres $54.00 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

EOI 848

KISATCHIE NATIONAL FOREST ES-041-06/12 LAES 057552 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 1, All; Section 2, All; Section 3, All. 1,998.57 Acres $2,998.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcel EOIs 974 and 1163 ES-042-06/12 LAES 057553ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 4, All. 638.47 Acres $958.50 Rental Subject to: FS Lease Notice No. 3 No Surface Occupancy Stipulation Controlled Surface Use Stipulation 1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1164 ES-043-06/12 LAES 057554 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 5, All. 636.63 Acres $955.50 Rental

27

Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1164 ES-044-06/12 LAES 057555 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 6, S2N2, NENW, S2; Section 7, All. 1,154.67 Acres $1,732.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-045-06/12 LAES 057556 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 8, All. 636.32 Acres $955.50 Rental Subject to: FS Lease Notice No.3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-046-06/12 LAES 057557ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 9, All. 636.72 Acres $955.50 Rental Subject to: FS Lease Notice No. 3 No Surface Occupancy Stipulation Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163

28

ES-047-06/12 LAES 057558 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 10, All. 636.68 Acres $955.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-048-06/12 LAES 057559 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 11, All; Section 12, All less 7.5 acres east of Hwy 360-1 in SE; Section 13, All less 40.0 acres east of Hwy 360-1 in E2.

2,022.78 Acres $3,034.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 No Surface Occupancy Stipulation (Sections 11 and 12) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-049-06/12 LAES 057660 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 14, All. 636.68 Acres $955.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 No Surface Occupancy Stipulation BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163

29

ES-050-06/12 LAES 057661 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 15, All; Section 16, All. 1,273.80 Acres $1,911.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-051-06/12 LAES 057662 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 17, All. 637.40 Acres $957.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-052-06/12 LAES 057663 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 18, All. 636.52 Acres $955.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-053-06/12 LAES 057664 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 19, N2, NESW less 5.87 ac in S2NESW, S2SW, SE. 591.10 Acres $888.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2

30

No Surface Occupancy Stipulation BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-054-06/12 LAES 057665 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 20, All. 637.76 Acres $957.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 EOIs 974 and 1163 ES-055-06/12 LAES 057666 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 21, All; Section 22, All. 1,274.00 Acres $1,911.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 No Surface Occupancy Stipulation BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-056-06/12 LAES 057667 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 23, All; Section 24, All less 5.0 acres east of Hwy 360-1 in NENE; Section 25, All. 2,054.08 Acres $3,082.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163

31

ES-057-06/12 LAES 057668ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 26, All; Section 27, All; Section 28, All. 1911.48 Acres $2,868.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-058-06/12 LAES 057669 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 29, N2, E2NWSW, SESE; Section 30, That part of Tract K-2 in NENE, S2N2, NESW, SE being 373.43 acres, S2NWSW, S2SWSW; Section 31, SWNE, NW less .48 acres and 29.34 acres in the SWNW, S2; Section 32, SW, S2NWSE, SWSE, E2SE south of Kisatchie Bayou.

1,588.40 Acres $2,383.50 Rental Subject to: FS Lease Notice No. 3 No Surface Occupancy Stipulation (Section 29) Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-059-06/12 LAES 057770 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 33, N2, NESW, SWSW, NWSE, E2SE; Section 34, All; Section 35, All; Section 36, All. 2,498.37 Acres $3,748.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulations 1 and 2 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163

32

ES-060-06/12 LAES 057771 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 6N, R 7W, Louisiana Meridian Section 29, SWNWSW, N2SE. 89.10 Acres $135.00 Rental 50% U.S. Mineral Interest Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 Controlled Surface Use Stipulation 2 (N2SE of Section 29) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 974 and 1163 ES-061-06/12 LAES 057772 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 9N, R 3W, Louisiana Meridian Section 3, E2NE, W2SESE; Section 7, NWNE; Section 10, W2SENW, E2SE; 236.53 Acres $355.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 Controlled Surface Use Stipulation 2 (Section 3) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1566 ES-062-06/12 LAES 057773 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 9N, R 3W, Louisiana Meridian Section 11, Tract C-681 in S2NE lying west of Pierre Joseph Mass survey; NWSE, N2SW, SWSW. 207.09 Acres $312.00 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 EOI 1566 ES-063-06/12 LAES 057774 ACQ Louisiana, Natchitoches Parish, Kisatchie NF T 9N, R 3W, Louisiana Meridian Section 15, E2NE, NESE; Section 21, E2NE, E2W2NE;

33

Section 22, SWNW; Section 26, SENW; Section 27, NE; Section 35, E2N2; Section 36, W2NW, SENW, NESW. 742.56 Acres $1,114.50 Rental Subject to: FS Lease Notice No. 3 Controlled Surface Use Stipulation 1 Controlled Surface Use Stipulation 2 (Sections 21, 22, 26, 27, 35 and 36) BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOIs 1554 and 1566

MISSISSIPPI PRIVATE SURFACE, ACQUIRED FEDERAL MINERALS ES-064-06/12 MSES 057775 ACQ Mississippi, Scott County, BLM T5N, R8E, Choctaw Meridian Section 3, W2NE, NENW, SW. 233.00 Acres $349.50 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1540 ES-065-06/12 MSES 057776 ACQ Mississippi, Scott County, BLM T5N, R8E, Choctaw Meridian Section 23, N2NE, SENE, NESE; Section 24, W2NE, W2W2, NESE; Section 25, Tract B-829, being 6 acres on West side SWNW and described as: Beginning on West boundary SWNW, at a point S 2.50 chains from NW corner SWNW thence E 6.00 chains, thence 5 10.00 chains, thence West 6.00 chains to West boundary of SWNW, thence N 10.00 chains to place of beginning; Section 26, SENE. 471.91 Acres $708.00 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

34

EOI 1542 ES-066-06/12 MSES 057777ACQ Mississippi, Scott County, BLM T4N, R9E, Choctaw Meridian Section 4, SWSW, 4.5 acres in the southwest corner of the NWSW, NESW less 4.375 acres, 4.375 acres in the NESW; Section 5, E2NE, SESW; Section 6, NWSW. 251.13 Acres $376.50 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1547 ES-067-06/12 MSES 057778 ACQ Mississippi, Scott County, BLM T5N, R9E, Choctaw Meridian Section 2, NESW, SWSW lying east of road; Section 4, NW, lying south of road, NWNE. 233.29 Acres $351.00 Rental Subject to: Subject to BLM’s Privately Owned Surface Tracts Stipulations, Freshwater Aquatic Habitat Stipulation and Lease Notices/Best Management Practices.

BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1537

BIENVILLE NATIONAL FOREST ES-068-06/12 MSES 057779 ACQ Mississippi, Jasper County, Bienville NF T 3N, R 10E, Choctaw Meridian Section 4, N2, W2SW, N2SE, SWSE; Section 5, E2, NW, E2SW, SWSW; Section 6, SWNE, SWNWNW, S2NW, SE; Section 8, NE, NENW, E2SE; Section 9, W2E2, W2.

2,106.80 Acres $3,160.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

35

EOI 1531 ES-069-06/12 MSES 057780 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 1, SWSE, SESE, S2SESW, SWSW less right of way of G.M. & N.R.R. described as: Beginning at a point on the center line of RR on north boundary of SWSW, Sec. 1, 9.58 chains East of West boundary of Section, thence down center line of G.M.&N. R.R. bearing S 3° 40’ West for a distance of 19.94 chains to a point on south boundary of Sec. 1, 8.40 chains from the SW corner containing 3.02 acres and also less 8.50 acres described as follows: Beginning at NW corner SWSW, thence East 10.97 chains to a concrete monument on east ROW line GM& O RR, the point of beginning of the 8.50 acre tract, thence N 89° 26’ E 9.15 chains to a concrete monument, thence S 00° 36’ W 9.60 chains, thence along & with an old fence or remnants thereof westerly 9.82 chains to east ROW line GM&O RR, thence N 4° 45’ E 8.66 chains to point of beginning; Section 2, S2SWSE, SESE; Section 3, NWNE, S2NE, N2NW, SWNW, SW, W2SE, SESE; Section 4, SENE, SWSE, E2SE; Section 6, W2E2 less 2 acres in NW corner of NWSE, E2W2, NWNW, W2SW; Section 7, All; Section 8, SWNW, W2SW, SE less 2 acres in NW corner of NWSE. 2,218.68 Acres $3,328.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-070-06/12 MSES 057781 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 9, S2NE, S2 less 1.00 acres in SE corner of SESW; Section 10, NE, NENW, S2NW, SW, NWSE, SWSE, W2SESE; Section 11, E2, SW, E2NENW, SENW less 4.66 acres described as: Beginning at the NW corner SENW, Sec. 11, Corner 1, thence S 88° 56’ E 608.52’ along north boundary of SENW to Corner 2, thence South 1.32’ to Corner 3, thence S 74° 30’ W 36.30’ to Corner 4, thence N 89° 15’ W 56.76’ to Corner 5, thence S 88° 30’ W 155.76’ to Corner 6, thence S 16 15’ W 95.70’ to Corner 7, thence S 07 W 22.44’ to Corner 8, thence S 16 30’ W 124.74’ to Corner 9, thence S 13° W 36.30’ to Corner 10, thence S 18° 15’ W 85.80’ to Corner 11, thence S 14° W 75.24’ to Corner 12, thence S 14° 45’ W 107.58’ to Corner 13, thence S 17° W 71.94’ to Corner 14, thence S 19° 30’ W 145.86’ to Corner 15, thence N 79 W 160.38’ to Corner 16, thence N 0° 55’ E 729.30’ along west boundary of SENW to Corner 1, the point of beginning; Section 12, All, less 4 acres in SE corner of SESE and less ROW of G.M.& N. RR, described as:

36

Beginning at a point on the center line of the railroad on North boundary of Sec. 12, 8.40 chains east of NW corner of Section, thence down center line of G.M.& N. R.R. bearing S 3° 40’ W for a distance of 80.70 chains to a point on south boundary of Section 12, 3.06 chains from SW corner, containing 12.22 acres.

2,087.40 Acres $3,132.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-071-06/12 MSES 057782 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 13, E2NE; N2NWNE; NENW; NWNW less a 3.04 acre strip 20.04 chains long & 100’ or 1.515 chains wide being 0.76 chains on each side of the following described center line of the G.M.& N. R.R. right of way: Beginning on the North boundary of Sec. 13 at a point East 3.06 chains from the NW corner of Section 13, thence along the centerline of said railroad right of way S 3° 40’ W 20.04 chains to the south boundary of the NWNW at a point East 1.66 chains from the SW corner of the NWNW; SWSW; W2SENW; NESW; SESW; W2SWSE; SWNW & NWSW less a 3.59 acre strip, 23.70 chains long & 100 feet or 1.515 chains wide, being 0.76 chains on each side of the following described center line of the G.M.& N R.R. right of way: Beginning on the North boundary of the SW of NW at a point East 1.66 chains from the NW corner of the SW of NW, thence along the center line of said railroad right of way s 3°40’ West 23.70 chains to the West boundary of Section 13 at a point North 36.71 chains from the SW corner of Section 13; Section 14, N2; N2SW; SESW; SE less right of way of the G.M.& N. R.R., described as follows: Beginning at a point on the East boundary of Section 14,36.71 chains North of the SE corner of same, thence down the center line of the G.M.&N. R.R., which bears South 3° 40’ West for a distance of 36.83 chains to a point on the South boundary & 2.57 chains West of the SE corner of Section 14, containing 5.58 acres, more or less; Section 15, All; Section 17, All. 2,287.15 Acres $3,432.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 FS Lease Notice 06 (Section 15) Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532

37

ES-072-06/12 MSES 057883 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 18, N2NE, East 30 acres of SENE, N2NW, SWNW less 10 acres in NW corner, S2; Section 19, All; Section 20, NWNE, S2NE, W2, SE. 1,779.36 Acres $2,670.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation No.1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-073-06/12 MSES 057884 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 21, All. 636.64 Acres $955.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 FS Lease Notice 06 Timing Limitation Stipulation No.1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-074-06/12 MSES 057885 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 22, All; Section 23, W2E2; NENW; E2NE & NESE less right of way of the G.M.& N. R.R. described as follows: Beginning at a point on the North boundary of Section 23, 2.57 chains West of the NE corner, thence down the center line of the said railroad which bears South 3° 40’ West for a distance of 60.38 chains to a point on the North boundary of the SESE, 6.25 chains West of the East boundary of Section 23, containing 9.15 acres, more or less; Section 24, SWNE, W2NW, SENW, SW. 1,266.13 Acres $1,900.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation No.1 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532

38

ES-075-06/12 MSES 057886 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 26, W2, SWSE; Section 27, N2; N2S2; SWSW; SESW less N2E2W2SESW; SWSE; SESE less 9.50 acres in a square in the SE corner; Section 28, N2, N2S2, SESE. 1,501.96 Acres $2,253.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-076-06/12 MSES 057887 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 29, All. 642.53 Acres $964.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 No Surface Occupation Stipulation 02 Timing Limitation Stipulation 01 EOI 1532 ES-077-06/12 MSES 057888 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 30, All. 639.56 Acres $960.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-078-06/12 MSES 057889 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 31, E2NE, NWNE, SENW, SWNW, S2W2NWNW. 210.30 Acres $316.50 Rental Subject to:

39

FS Notice to Lessee 03, 04 05 & 06 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-079-06/12 MSES 057990 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 32, All; Section 33, All. 1,285.44 Acres $1,929.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 No Surface Occupancy Stipulation 02 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-080-06/12 MSES 057991 ACQ Mississippi, Jasper County, Bienville NF T 4N, R 10E, Choctaw Meridian Section 34, W2W2.

160.00 Acres $240.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1532 ES-081-06/12 MSES 057992 ACQ Mississippi, Scott County, Bienville NF T 5N, R 7E, Choctaw Meridian Section 22, N2NE less a 1.30 acre graveyard lot described as: Beginning at SW corner of graveyard lot, which point lies N 68° 42’ W 9.25 chains from SE corner of NWNE, following fence around graveyard except for SE side, N 59° 30’ E 2.45 chains, N 29° W 5.59 chains, S 58° W 2.29 chains, S 27° E 5.44 chains to beginning; NENW; All that part of SENE lying north of old Brandon-Homewood Road, as: Beginning at NE corner of SENE, S 0° 30’ W 12.35 chains to centerline of old road, along road with meanders of N 64° W 2.00 chains, N 67° 30’ W 4.00 chains, N 68° 30’ W 2.00 chains, N 68° W 2.00 chains, N 68° 39’ W 2.00 chains, N 73° W 4.00 chains, N 66° 30’ W 2.00 chains, N 6° 30’ W 4.81 chains to a fence on the west boundary of SENE, leaving road N 0° 30 E 4.24 chains to an old fence corner recognized as NW corner of SENE, S 87° 48’ E 20.94 chains to beginning; SWSW; Section 23, N2N2, SENW, NESE, SWSE, SESE less 12.00 acres described as follows:

40

Beginning at SW corner of SESE, N 12.00 chains, E 10.00 chains, S 12.00 chains to a point on S line of SESE, W 10.00 chains to POB; Section 24, NENE, W2E2, W2; Section 26, SWNE, 10 acres in a square in SE corner of NENW, SENW, SWSW; Section 27, E2NW, W2NWNE, NW 10 acres of SWNE, SW, NWSE less N 20 acres, SWSE, E2SE; Section 28, NW, N2SW, SWSW; Section 29, E2NE, NESE; Section 30, NENW, S2NW, W2SW; Section 31, S2NE less NE 5 acres, NWNW, SWNW less NE 10 acres, S2SENW, SW, N2NWSE, S2SE. 2,532.17 Acres $3,799.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 FS Lease Notice 06 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1535 ES-082-06/12 MSES 057993 ACQ Mississippi, Scott County, Bienville NF T 5N, R 7E, Choctaw Meridian Section 32, E2NE; SWNE less SE 2 acres; NW; NESW less 0.30 acre described as: Beginning at NW corner of NESW & run thence S 20 feet, thence E 220 yards, thence N 20 feet, thence W 220 yards to POB; NWSW less SW 2 acres; SWSW less 10 acres in NW corner; SWSE; Section 33, SENE; W2NW, less Tr. B-63a, being described as: Commencing at the W ¼ corner of said section 33, thence N 89o52’58”E for 231.98 feet along with ¼ section line to Corner #1, the POB, thence N 00o07’02”W for 231.0 feet , thence N 89o52’58”E for 754.29 feet, thence S00o07’02”E for 231.0 feet, thence S 89o52’58”W for 754.29 feet along with the W ¼ section line and centerline of paved county road to POB, containing 4.0 acres.; SESW less W 10.00 acres; Section 34, N2NENE less: Beginning at SW corner of N2NENE around exception, N 6.27 chains to a dim old road, along old road S 78° 03’E 10.15 chains, thence leaving old road N 1.36 chains, E 5.45 chains, S 5.53 chains to south boundary of N2NENE, West 15.38 chains to POB; 10 acres in form of square in NW corner of NWNE; NENW; SWNW; SENW less 10 acres in uniform width on east side; SENE less 10 acres of uniform width on west side; SE; Section 35, NWNW; Also 3.00 acres beginning at NW corner of SWNW, E 210 yards, S 70 yards, W 210 yards, N 70 yards to beginning; NESW; S2SW; NWSE; Section 36, SENE; NWNW; S2SW. 1,245.75 Acres $1,869.00 Rental Subject to: FS Notice to Lessee 03, 04 & 05

41

FS Lease Notice 06 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels EOI 1535

DE SOTO NATIONAL FOREST ES-083-06/12 MSES 057994 ACQ Mississippi, Forrest County, De Soto NF T 1S, R 12W, St. Stephens Meridian Section 1, NENE less 2.28 acres described as: Commencing at SE corner of NWNE, thence due North 5.01 chains to a fence, thence N 40° 12’ E along an old fence 0.67 chains to a concrete monument, thence N 4° 39’ E along an old fence 19.00 chains to north boundary of said Section 1, said line being the same east-west line commonly known as the demarcation line, said point being marked by a concrete monument, thence west to NE corner of NWNE; SENE; NWNW; S2NW; Section 10, NE, W2SE; Section 15, Tract L-83a, being three (3) acres in the form of a square in the southwest corner of said section 15; Section 21, SENE, NESE; Section 24, N2SW, SWNE; Section 29, W2NE, W2SW, SESW, E2SE; Section 30, N2NW, SWNW, NWSW; Section 31, E2; Section 32, N2, SW, N2SE; Section 34, W2NE, NW, N2SW. 2,414.88 Acres 3,622.50 Rental Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-084-06/12 MSES 057995 ACQ Mississippi, Forrest County, De Soto NF T 1S, R 12W, St. Stephens Meridian Section 1, SWNE, SESW, NESE; Section 12, NE, SENW, N2SW, NESE; Section 28, SENW; Section 29, E2NE, NW, NESW, W2SE; Section 30, E2, SENW, NESW, S2SW; Section 31, W2W2, SENW, NESW; Section 32, S2SE. 1,640.72 Acres $2,461.50 Rental 50% U.S. Mineral Interest Subject to:

42

FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-085-06/12 MSES 057996 ACQ Mississippi, Forrest County, De Soto NF T 1S, R 12W, St. Stephens Meridian Section 11, SENE; Section 13, SWSW. 80.00 Acres $120.00 Rental 25% U.S. Mineral Interest Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-086-06/12 MSES 057997 ACQ Mississippi, Forrest County, De Soto NF T 1S, R 12W, St. Stephens Meridian Section 19, SESE; Section 24, S2NE; Section 31, NENW, SESW. 200.00 Acres $300.00 Rental 25% U.S. Mineral Interest Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels ES-087-06/12 MSES 057998 ACQ Mississippi, Forrest County, De Soto NF T 1S, R 12W, St. Stephens Meridian Section 24, SWSE. 40.00 Acres $60.00 Rental 75% U.S. Mineral Interest Subject to: FS Notice to Lessee 03, 04 & 05 Timing Limitation Stipulation 01 BLM Oil and Gas Leasing Surface Stipulations for Forest Service Parcels

43

Lease Stipulations

44

The following stipulations apply to all private surface parcels available on the June 2012 sale: Cultural Resources and Tribal Consultation Stipulation: This lease may be found to contain historic properties and/or resources protected under the National Historic Preservation Act (NHPA), American Indian Religious Freedom Act, Native American Graves Protection and Repatriation Act, E.O. 13007, or other statutes and executive orders. The BLM will not approve any ground disturbing activities that may affect any such properties or resources until it completes its obligations under applicable requirements of the NHPA and other authorities. These obligations may include a requirement that you provide a cultural resources survey conducted by a professional archaeologist approved by the State Historic Preservation Office (SHPO). If currently unknown burial sites are discovered during development activities associated with this lease, these activities must cease immediately, applicable law on unknown burials will be followed and, if necessary, consultation with the appropriate tribe/group of federally recognized Native Americans will take place. The BLM may require modification to exploration or development proposals to protect such properties, or disapprove any activity that is likely to result in adverse effects that cannot be successfully avoided, minimized or mitigated.

Exception: None Modification: None Waiver: None

Endangered Species Stipulation: The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened, endangered, or other special status species. BLM may recommend modifications to exploration and development proposals to further its conservation and management objective to avoid BLM-approved activity that will contribute to a need to list such a species or their habitat. BLM may require modifications to or disapprove proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed threatened or endangered species or result in the destruction or adverse modification of a designated or proposed critical habitat. BLM will not approve any ground-disturbing activity that may affect any such species or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act as amended, 16 U.S.C. 1531 et seq., including completion of any required procedure for conference or consultation.

Exception: None Modification: None Waiver: None

45

Sensitive Plant Species Stipulation (CSU): All suitable special status plant species habitat will be identified during environmental review of any proposed surface use activity. If field examination indicates that habitat of one or more of these species is present, the BLM will require a survey by a qualified botanist for special status plants during periods appropriate to each species. Operations will not be allowed in areas where sensitive plants would be affected.

Objective: To protect threatened, endangered, candidate, proposed, and BLM sensitive plant species.

Exception: An exception may be granted if the operator agrees to implement measures developed in consultation with USFWS and in coordination with State agencies.

Modification: The stipulation may be modified if it is determined that a portion of the lease area does not contain sensitive plant species habitat.

Waiver: The stipulation may be waived if, based on field surveys, it is determined that the lease area does not contain sensitive plant species habitat.

Freshwater Aquatic Habitat Stipulation (NSO): No surface occupancy or disturbance, including discharges, are permitted within 250 feet of a river, stream, wetland spring, headwater, wet meadow, wet pine savanna, pond, tributary, lake, coastal slough, sand bar, vernal pools, calcareous seepage marsh, or small, marshy calcareous stream. If the slope exceeds 10 percent, the buffer may be extended to 600 feet to provide adequate protection for aquatic habitats and associated species.

Objective: To protect the water quality of watersheds and natural stream substrate and morphology and to avoid potential impacts to aquatic species and their habitat.

Exception: An exception may be granted if the operator agrees to 1) span creeks, rivers, wetlands, and floodplains by attaching pipelines to bridges; 2) directionally drill wells and pipelines from upland sites under creeks, rivers, other waters, and wetlands or3) implement other measures developed in consultation with USFWS and in coordination with State agencies.

Modification: The buffer may be reduced if the adjacent waterway has been surveyed for 100 yards upstream and 300 yards downstream of the site, and the results document the lack of suitable/occupied/critical habitat for listed species which may be affected by the project, as determined by the BLM and USFWS. Waiver: None

46

The following Lease Notices/Best Management Practices apply to all private surface parcels available on the June 2012 sale Lease Notices/Best Management Practices Disposal of Produced Water Objective: To protect aquatic habitats for and to avoid potential impacts to special status fish, mussels, turtles, snails, plants, and migratory birds.

The preferred method for disposal of produced water will be through reinjection to a permeable formation with total dissolved solids (TDS) content higher than 10,000 milligrams per liter (mg/L) where the aquifer is not hydrologically connected to caves, wetlands, or surface water. In Alabama, the injection of produced water is regulated by the Alabama State Oil and Gas Board.

In Mississippi, the injection of produced water is regulated by the Mississippi Department of Environmental Quality (MDEQ) and the Mississippi Oil and Gas Board.

If reinjection is not practicable, closed-containment treatment systems should be used to contain and treat produced water for those contaminants and sediments exceeding State standards or EPA criteria. Salt content of any surface ponds for produced water, pigging pits, or other fluids must be less than 7,500 microsiemens per centimeter (ÎźS/cm). If surface pond salt content is greater than 7,500 ÎźS/cm, if other bird toxicity is present, or if the surface exhibits sheen, then the ponds must be netted or covered with floating balls, or other methods must be used to exclude migratory birds.

Produced waters may be released into an impounded reservoir if there is documentation that the discharge site and affected waters do not support special status species, are not designated critical habitat, and State and Federal water quality standards/criteria are met.

Produced waters may be released into a stream/river if the discharge site and affected waters have been recently surveyed and lack special status species, or if the applicant conducts approved surveys documenting the absence of special status species, State and Federal water quality standards/criteria are met, and a National Pollution Discharge Elimination System (NPDES) permit is obtained. The applicant should be aware that some species can be surveyed only during certain times of the year.

Produced waters may be released into a stream/river if the applicant can document that the produced waters would not adversely affect special status species. Water quality tests would be conducted on stream segment(s) or other locations proposed as discharge points, volumes to be released, and any settling ponds or other treatments proposed to improve wastewater quality. The water quality test data, any monitoring proposed, and other available information about general coalbed methane effluent characteristics (from published or unpublished literature) shall be 47

reviewed by USFWS. Information about timing of the releases in relation to low water and other planned BMPs would also be required. Testing would include analysis of the discharge site and affected waters for chemical oxygen demand (COD), conductivity, total suspended solids (TSS), As, Hg, Se, and polycyclic aromatic hydrocarbons (PAH). Dissolved oxygen and ammonia standards/criteria must be met in bottom waters if they support listed benthic or epibenthic species. If a special status species has been documented to be more sensitive than State/Federal standards/criteria, site-specific standards for that species may be imposed. Calculations would be based on State standards (or Federal CCC criteria for protection of freshwater aquatic life when the State has not determined a standard for these parameters).

Migratory Birds and Federally Listed Wildlife Objective: To protect perch and roosting sites and terrestrial habitats for and to avoid potential impacts to migratory birds and federally listed wildlife.

Any reserve pit that is not closed within 10 days after a well is completed and that contains water must be netted or covered with floating balls, or another method must be used to exclude migratory birds.

Maximum design speed on all operator-constructed and maintained (non-public) roads shall not exceed 25 miles per hour to minimize the chance of a collision with migratory birds or other listed wildlife species.

All powerlines must be built to protect raptors and other migratory birds, including bald eagles, from accidental electrocution, using methods detailed by the Avian Power Line Interaction Committee (APLIC 2006)

Perching and Nesting Birds and Bats Objective: To prevent birds and bats from entering or nesting in or on open vent stack equipment.

Open vent stack equipment, such as heater-treaters, separators, and dehydrator units, will be designed and constructed to prevent birds and bats from entering or nesting in or on such units and, to the extent practical, to discourage birds from perching on the stacks. Installing coneshaped mesh covers on all open vents is one suggested method. Flat mesh covers are not expected to discourage perching and will not be acceptable.

Invasive and Non-Native Species Objective: To discourage the spread of invasive, non-native plants.

48

Use of native or non-invasive plants in seeding mixtures will be encouraged to stabilize disturbed areas and during restoration activities. Construction sites will be surveyed for invasive species prior to ground disturbance. If invasive species are found, the proper control measures will be used to either eradicate the species from the area or minimize its spread to other areas. If cogongrass is found on site, equipment will washed before exiting the site to prevent the spread of this highly invasive species to other locations. Post-construction monitoring for cogongrass and other invasive plant species should be conducted to ensure early detection control. In the case of split-estate lands, final seed mixtures will be formulated in consultation with the private landowner.

Pesticide Application Objective: To protect the water quality of watersheds and natural stream substrate and morphology supporting special status species and their host species. Any ground application of herbicides or other pesticides, sterilants, or adjuvants within 150 feet of listed species or habitat will require site-specific control measures developed in coordination or formal consultation with USFWS. No aerial application of herbicides or pesticides will be permitted.

49

The following stipulations apply to lands owed by the Forest Service Cultural Resources and Tribal Consultation Stipulation: This lease may be found to contain historic properties and/or resources protected under the National Historic Preservation Act (NHPA), American Indian Religious Freedom Act, Native American Graves Protection and Repatriation Act, E.O. 13007, or other statutes and executive orders. The BLM will not approve any ground disturbing activities that may affect any such properties or resources until it completes its obligations under applicable requirements of\ the NHP A and other authorities. These obligations may include a requirement that you provide a cultural resources survey conducted by a professional archaeologist approved by the State Historic Preservation Office (SHPO). If currently unknown burial sites are discovered during development activities associated with this lease, these activities must cease immediately, applicable law on unknown burials will be followed and, if necessary, consultation with the appropriate tribe/group of federally recognized Native Americans will take place. The BLM may require modification to exploration or development proposals to protect such properties, or disapprove any activity that is likely to result in adverse effects that cannot be successfully avoided, minimized or mitigated.

Exception: None Modification: None Waiver: None

Endangered Species Stipulation: The lease area may now or hereafter contain plants, animals, or their habitats determined to be threatened, endangered, or other special status species. BLM may recommend modifications to exploration and development proposals to further its conservation and management objective to avoid BLM-approved activity that will contribute to a need to list such a species or their habitat. BLM may require modifications to or disapprove proposed activity that is likely to result in jeopardy to the continued existence of a proposed or listed threatened or endangered species or result in the destruction or adverse modification of a designated or proposed critical habitat. BLM will not approve any ground-disturbing activity that may affect any such species or critical habitat until it completes its obligations under applicable requirements of the Endangered Species Act as amended, 16 U.S.C. 1531 et seq., including completion of any required procedure for conference or consultation.

50

Exception: An exception may be granted if the operator agrees to implement measures developed in consultation with USDA Forest Service, USFWS, and coordination with state agencies.

Modification: The stipulation may be modified if it is determined that a portion of the lease area does not support threatened, endangered, or other special status species. Since the surface is under the management and jurisdiction of the USDA Forest Service, any waivers must meet USDA Forest Service policies/regulations and be approved by the USDA Forest Service.

Waiver: The stipulation may be waived if it is determined that a portion of the lease area does not support threatened, endangered, or other special status species. Since the surface is under the management and jurisdiction of the USDA Forest Service, any waivers must meet USDA Forest Service policies/regulations and be approved by the USDA Forest Service.

Sensitive Plant Species Stipulation: All suitable special status plant species habitat will be identified during environmental review of any proposed surface use activity. If field examination indicates that habitat of one or more of these species is present, BLM will require a survey by a qualified botanist for special status plants during time periods appropriate to each species. Operations will not be allowed in areas where sensitive plants would be affected.

Exception: An exception may be granted if the operator agrees to implement measures developed in consultation with USDA Forest Service, USFWS, and coordination with state agencies.

Modification: The stipulation may be modified if it is determined that a portion of the lease area does not support threatened, endangered, or other special status species. Since the surface is under the management and jurisdiction of the USDA Forest Service, any waivers must meet USDA Forest Service policies/regulations and be approved by the USDA Forest Service.

Waiver: The stipulation may be waived if it is determined that a portion of the lease area does not support threatened, endangered, or other special status species. Since the surface is under the management and jurisdiction of the USDA Forest Service, any waivers must meet USDA Forest Service policies/regulations and be approved by the USDA Forest Service.

Invasive and Non-Native Species Stipulation: Use of native or non-invasive plants in seeding mixtures under the direction/supervision of the USDA Forest Service will be encouraged to stabilize disturbed areas

51

and during restoration activities. Construction sites will be surveyed for invasive species prior to ground disturbance. If invasive species are found, the proper control measures will be used to either eradicate the species from the area or minimize its spread to other areas under the direction of USDA Forest Service and BLM. If an invasive species is found on site after construction has begun, equipment will be washed before exiting the site to prevent the spread of this highly invasive species to other locations. Pre-construction monitoring for invasive plant species should be conducted to ensure early detection control.

Exception: None Modification: None Waiver: None

52

NATIONAL FOREST, ALABAMA NOTICE TO LESSEE NO. 3 All or part of the leased lands may contain animal or plant species classified under the Endangered Species Act of 1973, as amended. Other species may have been identified as sensitive in accordance with Forest Service Manual 2670 and be listed on the current Regional Forester’s List of Sensitive Plant and Animal Species. Further information concerning the classification of these species may be obtained from the authorized Forest Officer.

Exploration and development proposals may be limited or modifications required if activity is planned within the boundaries of a threatened, endangered or sensitive plant or animal species location as it then exists. All activities within these areas must be conducted in accordance with existing laws, regulations and the Forest Land and Resource Management Plan guidelines.

NOTICE TO LESSEE NO. 4 All or part of the leased lands may be classified as wetlands in accordance with Executive Order 11990, “Protection of “Wetlands” or a floodplain in accordance with Executive Order No. 11988, “Floodplain Management.” Additional management requirement for the protection of riparian areas are contained in 36 CFR 219.27 (e) and the National Forest Management Act of 1976.

All activities within these areas may require special measure to mitigate adverse impacts to the resource values. They must comply with the above referenced executive orders, regulations, laws and be in accordance with the Forest Land and Resource Management Plan guidelines.

Further information concerning the classification and management of these lands may be obtained from the authorized Forest Officer.

53

TALLADEGA NATIONAL FOREST, ALABAMA Controlled Surface Use Stipulation # 1 Surface occupancy or use is subject to special operating constraints within the following areas: Lake Chinnabee Recreational Area T18S, R7E Section 14, W2SENE, W2NESE, NWSESE, NESWSE, E2NWSE, NWNWSE, N2SESW, SENW, S2NENW, S2NWNE, SWNE Section 25 Diagonal NW2SESE For the purpose of: Concentrated Recreation Area at Lake Chinnabee is assigned a Scenic Integrity Objective range from high to moderate.

Based on the Revised land and Resource management Plan for the National Forests in Alabama (Forest Plan).

54

TALLADEGA NATIONAL FOREST, ALABAMA Stipulation #2 No surface occupancy or use is allowed on the lands described below: Township 21N, Range 8E, St. Stephens P.M. Section 12, That part of NE lying East and South of River No surface occupancy stipulation on areas eligible for Wild River designation within a quarter – mile corridor along the wild segment Meeting the management guidelines of the Land and Resource Management Plan for the National Forest in Alabama Any changes to this stipulation will be made in accordance with the lands us plan and /or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820).

55

OUACHITA NATIONAL FOREST, ARKANSAS LEASE NOTICE #3 All or part of the leased lands may contain animal or plant species classified under the Endangered Species Act of 1973, as amended. Other species may have been identified as sensitive in accordance with Forest Service Manual 2670 and be listed on the current Regional Forester's List of Sensitive Plant and Animal Species. Further information concerning the classification of these species may be obtained from the authorized Forest Officer.

Exploration and development proposals may be limited or modifications required if activity is planned within the boundaries of a threatened, endangered or sensitive plant or animal species location as it then exists. All activities within these areas must be conducted in accordance with existing laws, regulations and the Forest Land and Resource Management Plan guidelines.

LEASE NOTICE #4 All or part of the leased lands may be classified as wetlands in accordance with Executive Order 11990, "Protection of Wetlands" or a floodplain in accordance with Executive Order No. 11988, "Floodplain Management." Additional management requirements for the protection of riparian areas are contained in 36 CFR 219.27(e) and the National Forest Management Act of 1976.

All activities within these areas may require special measures to mitigate adverse impacts to the resource values. They must comply with the above referenced executive orders, regulations, laws and be in accordance with the Forest Land and Resource Management Plan guidelines.

Further information concerning the classification and management of these lands may be obtained from the authorized Forest Officer.

56

OUACHITA NATIONAL FOREST, ARKANSAS CONTROLLED SURFACE USE STIPULATION #1a

Surface occupancy or use is subject to the following special operating constraints:

Management Area 17 – Semi-Primitive Areas. Activities must be conducted in such a manner as to reasonably reduce visibility of the operation and meet visual quality and other Management Area objectives to the extent practical.

On the lands described below: TOWNSHIP 4 NORTH, RANGE 32 WEST FIFTH PRINCIPAL MERIDIAN Acquired Section 35: NW, N2SW Public Domain Section 34: N2SE, SWSE Section 35: S2SW, E2 Section 36: W2, NE For the purpose of: To meet Management Area 17 Forest Plan objectives; Ouachita National Forest Revised Forest Plan 9/23/2005, as amended and Final EIS. RFP Design Criteria RS003.

Any changes to this stipulation will be made in accordance with the Ouachita National Forest Land and Resource Management Plan, as amended, and/or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS manual 1950 and 2820).

57

KISATCHIE NATIONAL FOREST, LOUISIANA LEASE NOTICE #3 All or part of the leased lands may contain animal or plant species classified under the Endangered Species Act of 1973, as amended. Other species may have been identified as sensitive in accordance with Forest Service Manual 2670 and be listed on the current Regional Forester’s list of sensitive plant and animal species. Further information concerning the classification of these species may be obtained from the authorized Forest officer.

Exploration and development proposals may be limited or modifications required if activity is planned within the boundaries of a threatened, endangered or sensitive plant or animal species location as it then exists. All activities within these areas must be conducted in accordance with existing laws, regulations and the Forest Land and Resource Management Plan guidelines.

TO BE USED IF WETLANDS ARE OUTSIDE STREAMBED OR RIPARIAN ZONE

LEASE NOTICE NO. 4 All or part of the leased lands may be classified as wetlands in accordance with Executive Order 11990, "Protection of Wetlands" or a floodplain in accordance with Executive Order No. 11988, "Floodplain Management." Additional management requirements for the protection of riparian areas are contained in 36 CFR 219.72 (e) and the National Forest Management Act of 1976.

All activities within these areas may require special measures to mitigate adverse impacts to the resource values. They must comply with the above referenced executive orders, regulations, laws and be in accordance with the Forest Land and Resource Management Plan guidelines.

Further information concerning the classification and management of these lands may be obtained from the authorized Forest Officer.

58

KISATCHIE NATIONAL FOREST, LOUISIANA TOWNSHIP 6NORTH, RANGE 7 WEST NO SURFACE OCCUPANCY STIPULATION

No surface occupancy or use is allowed on the lands described below (legal subdivision or other description).

T6N R7W, Louisiana Meridian Section Approx. Location

Approx.

Acres

4

S2SW

13.6

9

N2N2NW

7.2

11

SENE; SWNW; S2SENW; NESW

36.6

12

SWNW

8.9

14

S2NW; SW; NWSE

111.1

21

SWNE; SENW; NWSW

43.6

22

S2NW; E2SE; W2SE

66.9

29

SENE

13.1

For the purpose: Protection of Developed Recreation Sites; Overlooks; Jurisdictional Wetlands Any changes in this stipulation will be made in accordance with land use plan and/or the regulatory provision for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.)

59

KISATCHIE NATIONAL FOREST, LOUISIANA CONTROLLED SURFACE USE STIPULATION #1 Surface occupancy or use is subject to the following operating constraints.

Placement of mineral extraction equipment, buildings, roads, ponds, and wellpads and the clearing of pipeline right-of-way vegetation are prohibited.

T6N R7W, Louisiana Meridian Section

Approx. Location

Approx.

Acres

1

ALL

338.6

2

ALL

302.9

3

ALL

315.6

4

ALL

294.2

5

ALL

284.1

6

S2N2; NENW; S2

189.7

7

ALL

248.7

8

ALL

337.2

9

ALL

270.4

10

ALL

295.2

11

ALL

277.8

12

ALL

296.1

13

ALL

204.3

14

ALL

111.02

15

ALL

252.6

16

ALL

301.8

17

ALL

285.3

60

18

ALL

197.3

19

N2; NESW less 5.87 ac; S2SW; SE

183.5

20

ALL

294.3

21

ALL

281.7

22

ALL

218.0

23

ALL

220.4

24

ALL

240.5

25

ALL

238.2

26

ALL

267.8

27

ALL

310.2

28

ALL

331.2

29

N2; E2NWSW; SWNWSW; N2SE; SESE

173.9

30

E2E2; SENE; S2NW; NESW; S2NWSW; S2SWSW; W2SE

129.3

31

SWNE; NW; S2

153.7

32

Pt of S2

96.9

33

N2; NWSW; SWSW; N2SE; SESE

230.0

34

ALL

286.9

35

ALL

260.6

36

ALL

263.6

For the purpose of: Protection of Streamside Zones Any changes to this stipulation will be made in accordance with the land use plan and/or regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820).

61

KISATCHIE NATIONAL FOREST, LOUISIANA CONTROLLED SURFACE USE STIPULATION #2 Surface occupancy or use is subject to the following operating constraints.

Roads and clearing of right-of-way vegetation may occur if a site-specific environmental analysis determines that the mitigated environment effects would not be significant.

T6N R7W, Louisiana Meridian Section

Approx. Location

Approx.

Acres

1

NE; W2W2

40.2

2

NW

17.8

3

E2

4.25

6

E2NW

2.5

7

S2S2N2; N2S2

8.9

8

W2SW

.7

9

SENE; SESW; SE

11.4

11

NE; S2

118.3

12

S2N2; S2

286.6

13

E2; NW

230.0

14

N2; SW; NWSE

244.9

15

E2; SW

221.5

16

NWNE;

87.1

17

S2SENE; N2NESE

4.2

19

N2N2NW; S2N2; S2

200.6

62

20

ALL

289.5

21

ALL

222.5

22

N2; N2SW

173.5

23

E2; NWNWNW

5.4

24

E2; W2W2

165.3

25

W2W2; SWSE

6.0

26

E2E2; S2NW; NESW

9.2

27

S2S2N2; N2S2

27.4

28

N2; N2S2

20.2

29

S2NE; N2SE; SESE

72.2

30

SESESWNE; S2NW; NESW; S2NWSW; S2SWSW; SE

123.0

31

NW; E2SE

71.1

32

SW; S2NWSE; E2SE

113.9

33

SWNE; NW; NESW; SWSW; SESE; S2NESE

61.0

34

S2

12.2

35

E2NE; N2SE

21.6

36

NWNW; SENW; SW

22.2

For the purpose of: Protection of Riparian Zones; Amenity Values of Longleaf Trail (FH 59) Any changes to this stipulation will be made in accordance with the land use plan and/or regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820).

63

KISATCHIE NATIONAL FOREST, LOUISIANA NO SURFACE AND OCCUPANCY STIPULATION #1

No use or occupancy of the surface will be permitted within the following areas:\ TOWNSHIP 4 NORTH, RANGE 32 WEST FIFTH PRINCIPAL MERIDIAN PUBLIC DOMAIN Section 34: NWSESE

Poteau Mountain Communications Site.

For the purpose of: Protecting the resources and curtailing any operations that are not compatible with the purpose of the management area. The lessee is authorized to employ directional drilling to exploit the mineral resources within the aforementioned area(s) providing such drilling will not disturb the surface.

To meet Forest Plan objectives; Ouachita National Forest Revised Forest Plan 9/23/2005, as amended and Final EIS. RFP Design Criteria RS003.

Any changes to this stipulation will be made in accordance with the Ouachita National Forest Land and Resource Management Plan, as amended, and/or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS manual 1950 and 2820).

64

NATIONAL FORESTS IN MISSISSIPPI TIMING LIMITATION STIPULATION 01 No surface use is allowed during the following time period(s). This stipulation does not apply to operation and maintenance of production facilities.

Ground disturbing activities, including road, pipeline, and well pad construction, may be restricted during the wet season from 11/30 thru 3/31 depending on site specific conditions at the time the Application for Permit to Drill is filed, unless the Operator can furnish construction measures to mitigate damages to surface resources.

On the lands described below: Entire lease For the purpose of (reasons): Prevent excessive soil erosion and rutting resulting from construction activities during the wet season. Land and Resource Management Plan, National Forests in Mississippi, as amended, 9/85.

Any changes to this stipulation will be made in accordance with the land use plan and/or the regulatory provisions for such changes. (For guidance on the use of this stipulation, see BLM Manual 1624 and 3101 or FS Manual 1950 and 2820.)

65

NATIONAL FORESTS IN MISSISSIPPI

NOTICE TO LESSEE 03

All or part of the leased lands may contain animal or plant species classified under the Endangered Species Act of 1973, as amended. Other species may have been identified as sensitive in accordance with Forest Service Manual 2670 and be listed on the current Regional Forester’s List of Sensitive Plant and Animal Species. Further information concerning the classification of these species may be obtained from the authorized Forest Officer.

Exploration and development proposals may be limited or modifications required if activity is planned within the boundaries of a threatened, endangered or sensitive plant or animal species location as it then exists. All activities within these areas must be conducted in accordance with existing laws, regulations and the Forest Land and Resource Management Plan guidelines.

NOTICE TO LESSEE 04

All or part of the leased lands may be classified as wetlands in accordance with Executive Order 11990, “Protection of Wetlands” or a floodplain in accordance with Executive Order No. 11988, “Floodplain Management.” Further information concerning the classification of these lands may be obtained from the authorized Forest office.

All activities within these areas must be conducted in a manner to minimize adverse impacts to the resource values and in accordance with the Forest Land and Resource Management Plan guidelines.

66

NATIONAL FORESTS IN MISSISSIPPI NOTICE TO LESSEE 05

The proposed land to be leased has areas, less than a 40-acre legal subdivision, with slopes greater than 15% in which ground disturbing activities (such as roads and well pads) will not be authorized. Further information concerning the classification of these lands may be obtained from the authorized Forest office.

All activities within these areas must be conducted in a manner to minimize adverse impacts to the resource values and in accordance with the Forest Land and Resource Management Plan guidelines.

67

NATIONAL FORESTS IN MISSISSIPPI LEASE NOTICE 06 All or part of the leased lands may contain a special management area that has been identified as a prairie by the Mississippi Natural Heritage Program. Further information may be obtained from the authorized Forest Officer.

Exploration and development proposals may be limited or modifications required if any activity is planned within the boundaries of an identified prairie location as it then exists. All activities must be conducted in accordance with existing laws, regulations and the Forest Land and Resource Management Plan guidelines.

Cedar Thicket Prairie Far Prairie Not Worth It Prairie Cow -Cow Prairie 101 Prairie Green Grass Prairie Hilltop Prairie

T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E

Giant Crayfish Prairie Five Acre Prairie

T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R8E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R9E T4N R10E T4N R10E

Leaf River Prairie Log Yard Prairie Wiregrass Prairie Half & Half Prairie Next to Bottom Prairie Bottom Prairie Corner Prairie Broomsedge Prairie Narrow Prairie Eroded Prairie 583 Prairie Ichusa Creek Prairie #3 Ichusa Creek Prairie #1 Ichusa Creek Prairie #4 Ichusa Creek Prairie #2 Daniels Prairie Chicken House Prairie Pine Tree Prairie Murphy Prairie Murphy 2 Prairie Quarterliah Prairie Fourth Acre Prairie

S-2 S-4 S-9 S-9 S-9 S-9 S-9 S-10 S-10 S-10 S-15 S-13 S-14 S-14 S-14 S-15 S-15 S-15 S-15 S-18 S-18 S-19 S-21 S-22 S-22 S-22 S-23 S-26 S-26 S-34 S-34 S-15 S-21

68

E2SE NWNE SWNE N2SE SENE SE NESE & SENE SWNW & NWSW SWSW SESE NENE SENW & NESW N2SW SESW SESW & SWSE SWNE E2NE & NESE NENE NENW SWSW NESW NENW NESE W2NE SWNW & NWSW NENE SWSE NENW NWNE, N2SWNE, E2E2SE NENE NWSE NENW NENW

Lunch Prairie Bumelia Prairie Circle Prairie C73 Prairie Plantation Prairie Corner 85 Prairie Whale Bone Prairie 506 Prairie Not Much Prairie Walk Hill Prairie Suntower Prairie Sale Prairie Mudline Prairie Grancy Greybeard Prairie Eureka Church Prairie Bad Walk Prairie Flag Prairie Pipeline Prairie Section 19 Prairie Harrell Hill Prairie

T4N R10E T4N R10E T5N R7E T5N R7E T5N R7E T5N R7E T5N R8E T5N R8E T5NR9E T5N R9E T5N R9E T5N R9E T5N R9E T5N R10E T5N R10E T6N R7E T6N R7E T6N R7E T6N R8E T6N R8E

Food Plot Prairie FS Sign Prairie Interstate Prairie Tower Prairie #1 Baccharis Prairie Tower Prairie #2 Wooded Prairie Old Dump Prairie Cedar Glade Prairie Little Prairie Heron Prairie Clearcut Prairie Singelton Prairie C24 Prairie

T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R8E T6N R9E T7N R7E

S-31 S-31 S-12 S-10 S-12 S-12 S-22 S-34 S-10 S-21 S-21 S-22 S-27 S-22 S-27 S-23 S-23 S-24 S-19 S-25 S-26 S-29 S-29 S-29 S-30 S-30 S-30 S-30 S-30 S-31 S-31 S-32 S-32 S-17 S-24

69

SENW NWNW NESW SENW NWNE SWNW SENW NENE E2SE NWSE SWSE SWSW SWNW SWSE NWNE SENE SWSW NESW E2SE W2NW & NWSW; NE & N2SE NESW SESW SWNW N2SE SENW E2SE SESW SWNE W2NW NWNW NENW NESW NENE SESW

NATIONAL FORESTS IN MISSISSIPPI

STIPULATION FOR LANDS OF THE NATIONAL FOREST SYSTEM UNDER JURISDICTION OF DEPARTMENT OF AGRICULTURE The licensee/permittee/operator/lessee must comply with all the rules and regulations of the Secretary of Agriculture set forth at Title 36, Chapter II, of the Code of Federal Regulations governing the use and management of the National Forest System (NFS) when not inconsistent with the rights granted by the Secretary of the Interior in the license/prospecting permit/lease.

The Secretary of Agriculture’s rules and regulations must be complied with for (1) all use and occupancy of the NFS prior to approval of a permit/operation plan by the Secretary of the Interior, (2) uses of all existing improvements, such as Forest development roads, within and outside the area licensed, permitted or leased by the Secretary of the Interior, and (3) use and occupancy of the NFS not authorized by a permit/operating plan approved by the Secretary of the Interior.

All matters related to this stipulation are to be addressed to: Forest Supervisor, NFs in Mississippi 100 W. Capitol Street, Suite 1141 Jackson, MS 39269 Telephone No.: 601-965-1600 who is the authorized representative of the Secretary of Agriculture.

BLM District Office

Management Agency

Bureau of Land Management Jackson District Office 411 Briarwood Drive, Suite 404 Jackson, Mississippi 39206

USDA Forest Service - Region 8 Room 792 South, Lands & Minerals 1720 Peachtree Road, N.W. Atlanta, Georgia 30367

70

Maps

71