CERTIFICATION-DETERMINATION A. Approve the attached ... · 3.2 Exhibit "A." which is attaehed lo...

CERTIFICATION-DETERMINATION

Pursuant to thc authority vested in the Secretary of the Interior under the Outer Continental Shelf Lands Act, approved August 7, 1953, 67 Stat. 462, 43 U.S.C. 1331 et seq., as amended, and delegated to the Regional Supervisor of the Bureau of Safety and Environmental Enforcement, I do hereby:

A. Approve the attached Agreement for the development and operation ofthe Garden Banks Block 913 Unit, Gulfof Mexico Outer Continental Shelf, offshore Louisiana.

B. Certify and determine that the Unit Plan of Development and Operation contemplated in the attached Agreement is in the interest of conservation.

DATED:

Regional Supervisor Production and Development Bureau of Safety and Environmental Enforcement, Gulf ofMexico OCS Region

Contract No. 754320001

UNIT AGREEMENT FOR OITER CONTINENTAL SHELF EXPLORATION, DEVELOPMENT, AND PRODUCTION OPERATIONS

ON THE GARDEN BANKS BLOCK 913 UNIT

GARDEN BANKS

ALL OF BLOCKS 869, 913 & 957

NG 15-02 PROTRACTION AREA

OFFSHORE LOUISIANA

CONTRACT NO.

711432 000 1

RECEIVED SEP 1 3 2019

Development and Unitization BSEE Gulf of Mexico Region

Table of ( ontents

Article I Definitions Article II Incorporation Article III Unit Area and Exhibits Article IV Designation of Unit Operator Article V— Resignation or Removal of Unit Operator Article VI Successor Unit Operator Article Vll Unil Operaling Agreement Article VIII Appearances and Notices Article IX Unit Plan of Operation Article X Revision of Unit Area Article XI Participating Areas Article XII Allocation of Production Article XIII Automatic Adjustment of Unit .Area Article XIV Relinquishment of Leases Article XV Rentals and Minimum Royalties Article XVI Effective Date and Termination Article XVII Leases and Contracts Conformed and Extended Article XVIII Counterparts Article XIX Subsequent Joinder Article XX Remedies Article XXI No Waiver of Certain Rights Article XXII Covenants Run With the Land

\\ itnesseth:

WMKKr.AS. Section 5(a) ofthe Act aulhori/.es the Secretan oflhe Inlerior (Secrelary) to

prescribe rules and regulations which shall provide for unili/ation, pooling, and drilling agreements:

WHEREAS, pursuant to lhe rules and regulations ofthe Secrelary. 30 CFR 250.1300, ct seq..

it is deemed to bc in the inleresl of expeditious exploralion and development, consen alion. prevention

of waste, or the protection of correlative righls to uniii/e the oil and gas interest in thc Unit Area; and

WHEREAS, it is deemed to be necessary in the interest of expeditious exploralion and

development, conservation, for the prevention of waste, or for the proiection of conelative rights to

conduct exploration, development, and production operations in the unit area as though the area were

subjecl lo a single lease:

NOW, THEREFORE, in consideration ofthe premises and promises conlained herein, it is

agreed lhat:

Article I Definitions

The following dcilnilions of lerms shall apply lo ihis Agreemenl:

ACT means the OCS Lands Acl of 1953, as amended, 43 U.S.C. 1331. et seq.

AGREEMENT means this Unil Agreemenl. approved by the Regional Supervisor for

conducting exploralion. developmeni, and production operalions wilhin the unit area.

BLOCK means an area designated as a block on a U.S. Oflicial Leasing Prolraction Diagram

for an area of the OCS.

OCS means the Outer Continental Shelf as defined in 43 U.S.C. 1331 (a).

PARTICIPATING AREA is that part ofthe Unit Area that is reasonably proven by drilling

and complelion of producible wells, geological and geophysical infonnation. and engineering data to

be capable of producing hydrocarbons in Paying Quantities.

PAYING QUANTITIES as used herein means the produclion ofoil and/or gas in quantities

sufficient to yield a return in excess of operaling costs.

REGIONAL SUPERVISOR means the Regional Supers isor of the Office of Production and

Development oflhe Bureau of Safety and Environmental Enforcement. Deparlment ofthe Interior

(DOI). or a designee, authorized and empowered to regulate and approve unit operations.

REGULATIONS means all rules prescribed or adopted pursuanl to the Act. They include all

regulations prescribed or amended al any time to provide for thc prevention of waste, conservation

of natural resources ofthe OCS. and the proieclion of correlative righls therein.

RESERVOIR means an underground porous, permeable medium containing an 3

accumulation ofoil or gas or both. Each zone ofa general structure containing such an accumulation

that is separated from any other accumulation ofoil or gas or both in the structure is a separate

"reservoir."

UNIT AREA means the area of the OCS which is made subject to this Agreement and

described in Article III.

UNIT OPERATING AGREEMENT means an agreement made between the Working-

Interest Owners and the Unit Operator providing for the apportionment of costs and liabilities

incurred in conducting operations pursuant lo this Agreement and the establishment of sueh other

righls and obligations as the\ deem appropriate.

UNIT OPERA TOR means the person, association, partnership, corporation, or other business

entity designated by the Working-Interest Owners and approved by the Regional Supervisor to

conduct Unit Operations within the I nit Area in aeeordanee vvith a plan of operation approved

pursuanl to the Aet. applicable regulations, and this Agreement.

UNITIZED SUBSTANCES means oil and/or gas within the Reservoir(s) that underlie the

unitized lands and which are recovered or produced by operations pursuanl to this Agreement.

WORKING INTEREST means an inleresl in the Unit Area held by virtue ofa lease, operaling

agreemenl. or other contractual arrangement under which, except as otherwise provided in this

Agreement, the rights or authoritv to explore for. develop, and produce oil and gas are conferred. The

righl delegated lo the Unil Operalor by this Agreement is not a Working Inleresl.

WORKING-INTEREST OWNER means a party to this Agreement that owns a Working

Interest.

Article II In corpora lion

All provisions oflhe Ael. the Regulations, olher applicable laws, and the leases covering ()( S lands within lhe I 'nil Area are made pari oflhis Agreemenl.

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Article III—-Unit Area tmd Kxhibits

3.1 1 he following described olTshore area as shown on the U.S. Official Leasing Protraction

Diagram is subject to valid leases and constitutes the Unit Area.

3.2 Exhibit "A." which is attaehed lo this Agreement and made a part hereof, is a plat

identifying the Unit Area and component Blocks and leases.

3.3 Exhibit "B." which is attached to this Agreement and made a part hereof, is a schedule

listing the component leases and the ownership ofeach.

3.4 Exhibit "CV which will be submilled in accordance with the provisions ofthis Agreement

and will be made a part hereof, is a schedule listing the component parts ofthe Participating Area(s)

by lease and the percentage ofo i l or gas. or bolh. lhal is to be allocated to each lease.

3.5 Exhibits "A." "B." and "C shall be revised by the Unit Operator whenever changes in

thc Unit Area, changes in the Participating Area, changes in the ownership of one or more leases, or

changes in the percentages ofoil or gas. or both, allocated to the individual leases render such changes

necessary. Two copies ofthe revised exhibits shall be submilled lo the Regional Supervisor for

approval.

Article IV—Designation of I nit Operator

4.1 Chevron U.S.A. Inc. is designated as the Unit Operator and agrees to accept the righls

and obligations ofthe I Init Operalor to explore for. develop, and produce oil and/or gas as provided

in this Agreement.

4.2 Excepl as otherwise provided in this Agreement and subject to the lerms and conditions

of approved plans of operalions, the exclusive righls and obligations ofthe owners of Working-

Interests to conducl unil operalions to explore for. develop, and produce oil and/or gas in the Unit

Area delegated to and shall be exercised by the Unit Operator. I his delegation neither relieves a

lessee ofthe obligation to comply with all lease lerms nor transfers title lo any lease or operaling

agreemenl.

4.3 The Unil Operalor shall comply with the Depaiiment oflhe Inlerior's non-procurement

debannent and suspension regulations as required by Subpart B of 2 CFR Part 1400 and shall

communicate the requirement to comply with these regulations to persons with whom il does business

related to this unit by including this term in ils conlracls and transactions.

Article V Resitination or kemoval of I nit Operator

5.1 The Unit Operalor shall have thc right lo resign at any time. Such resignation shall not

become effective unlil 60 days after written nolice of an intention lo resign has been delivered by the

Unit Operator to thc Working-Interest Owners and the Regional Supervisor and until all platforms,

artificial islands, installations, and olher devices, including wells used for conducting operations in

the Unit Area, are placed in a condition satisfactory to the Regional Supervisor for the transfer of

operalions. or. if no successor I 'nit Operator has been designated, for suspension or abandonment of

operations. If a successor Unit Operalor is designated and approved as provided in Article VI. the

resignation shall be effeciive upon the designation and approval oflhe successor Unil Operalor.

5.2 The Unil Operalor may be subjecl to removal by the same percentage vote ofthe owners

of Working Interests as provided by Article VI for the designation ofa successor Unit Operator. This

removal shall not be effective unlil the Working-Interest Owners notify the Regional Supervisor and

the Unit Operator and until the Regional Supervisor approves the designation ofa successor Unit

Operalor.

5.3 Thc resignation or removal ofthe Unit Operator shall not release the Unit Operator

from liability for any failure to meet any obligations which accrued before the effective date of

resignation or removal.

5.4 The resignation or removal ofthe Unit Operator shall not terminate any right, title, or

inleresl as the owner of a Working interest or olher interest in the Unit Area. However, when lhe

resignation or removal oflhe Unil Operator becomes effective, lhe Unit Operator shall relinquish

to the successor Unit Operator all wells, plalforms. arlilleial islands, installations, devices, records,

and any other assels all owned solely by the unil joinl accounl.

Article VT—Successor Unit Operat< r

6.1 Whenever the Unit Operator lenders its resignation as Unit Operator or is removed as

provided in Article V. a successor Unil Operalor may be designated by (a) an affirmative vole of

the owner(s) ofa majority oflhe Working Inleresls. based on their decision pursuanl to the Unit

Operating Agreement(s), and (b) the siccessor Unit Operator's acceptance in writing ofthe righls

and obligations oflhe Unil Operator. The successor Unil Operalor shall file wilh the Regional

Supervisor an executed copy ofthe designation of successor. 1 lowever. the designation shall nol

become effective until approved by thc Regional Supervisor.

6.2 If no successor Unit Operalor is designated as herein provided wilhin 60 days

following notice to the Regional Supervisor ofthe Unit Operator's intent to resign or removal of

a Unit Operator, thc Regional Supen/isor may elect to designate one ofthe Working-lnleresi

Owners olher lhan lhe Unil Operalor as successor Unil Operalor or may declare this Agreement

terminated.

Article Vll—Unit Operating Agreement

7.1 The owners of Working Inleresls and the Unit Operator shall enler inlo a Unit

Operaling Agreement which shall describe how all costs and liabilities incurred in mainlaining or

conducting operalions pursuant lo this Agreement shall be apportioned and assumed. The Unit

Operating Agreement shall also describe how the benelits whieh may accrue from operalions

conducted on the Unit Area shall bc apportioned.

7.2 The owners of Working Interests and the Unit Operator may establish by means of one

or more Unit Operating Agreements such other rights and obligations as they deem necessary or

appropriate. However, no provision ofthe Unit Operaling Agreemenl shall be deemed lo modily

the tenns and conditions ofthis Agreement or to relieve the Working-Interest Owners or the Unit

Operator of any obligation set forth in this Agreement. In case of any inconsistency or conflict

between this Agreemenl and the Unit Operaling Agreemenl. the lerms of this Agreement shall

prevail.

7.3 Two copies of thc Unit Operating Agreement executed in conjunction with the first

section ofthis Article shall be attached lo this Agreement when il is Bled with the Regional

Supervisor wilh a request for approval. Two copies ofall olher I Init Operaling Agreements and

any amendments ihereto also shall be filed w ith the Regional Supen isor w ilhin 30 days of final

execution.

Article Vlll—Appearances and Notices

8.1 The Unit Operator shall, af'.er notice lo olher parlies affected, have the righl lo appear

on behalf of all Working-Interest Ow ners before the DOI or any other body legally empow ered to

issue decisions concerning orders or regulations ofthe DOI and to appeal from these decisions.

The expense ofthcse appearances shal he paid and apportioned as provided in the Unit Operaling

Agreemenl. However, any affected Working-Interest Owners shall have the right al their own

expense to be heard in any proceeding.

8.2 Any order or notice relating to this Agreement which is given to the Unit Operator

by the Regional Supervisor shall be deemed given lo all Working-Interest Owners ofthe Unit

Area. All notices required by this Agreement lo be given to the Unit Operator or the owners of

Working Interests shall be deemed properly given if given in writing and delivered personally or

sent by prepaid registered or certi lied mail lo the addresses set forth below or lo such other

addresses as ma> ha\e heen furnishec in wniine lo ilie parl> sending lhe notice.

Article I X — I nit Plan of Operation

9.1 The Unit Operator shall submit plans of operation which are consistent wilh the

requirements for Fxploration Plans or Development and Produclion Plans as required by thc Act.

Subpan B of 30 CFR Part 550, and other sections ofthe Regulations. All operations within the

Unit Area shall be conducted in accordance with an approved plan.

9.2 When no oil or eas is bei ig produced in Paying Quantities from the Unit Area and

when all or part ofthe area is subieel lo one or more leases bevond lhe primaiy lerm. a continuous

drilling or well-reworking program shall be maintained with lapses of no more lhan one (1) year

per lapse between such operations unless a suspension of production or other operation has been

ordered or approved by the Regional Supervisor or unless extended pursuant to 30 CFR

250.180(e). Plans may call for a cessation of drilling operations for a reasonable period of time

afler the discovery and delineation of a resen oir when such a pause in drilling activities is

warranted to permil the design, fabricalion. and erection of platlbrms and olher installations needed

for development and production operations, provided a suspension of production or other

opcralion has been ordered or approved by the Regional Supervisor.

9.3 An acceptable initial plan of operation shall be submitted at the lime this Agreemenl

is filed for the Regional Supervisor's approval. Kach plan of operation shall expire on the dale

specified in the plan. Al leasl 60 days before the scheduled expiration ofany plan, unless the

Regional Supen isor grants an extension for good cause, the Unit Operator shall file an aeeeplahle

subsequenl plan of operation for approv al in accordance with this Article.

Article X Revision of I nit Area

10.1 The Unit Area may be further revised by additions necessary for unit operations or for

the inclusion of an area capable of proJueing oil and or gas in Pav ing Quantities whenever such

action appears proper lo include additional lands or may be further revised by the contraction oflhe

Unil Area when such contraction is necessary or advisable to conform with the purposes ofthis

Agreement. Sueh additions or eontraetions shall be affected by the Unit Operator on its own motion

after preliminary concurrence ofthe Regional Supervisor or on demand ofthe Regional Supervisor.

The effective date ofany expansion oi contraction oflhe Unit Area shall be the lirst ofthe month

following the date of approval ofthe expansion or contraction by the Regional Supervisor provided,

however, that a more appropriate effcetive date may be used if justified by the Unil Operator and

approved by the Regional Supervisor.

10.2 The Unil Area shall nol be reduced on account ofthe depletion ofthe Unitized

Substances for which il was eslablished. but the Unit Area established under the provisions oflhis

Article shall terminate aulomatically whenever operalions are permanenlly abandoned in the unit.

Article XI—Participating Areas

11.1 Prior to commencement of production of Unitized Substances, or as soon thereafter

as required by the Regional Supervisor, the I 'nit Operalor shall submil to the Regional Supervisor,

as Exhibit "C." a schedule by lease of (a) all land reasonably proven to be productive of Unitized

Substances in Paying Quantities by the drilling and completion of producible wells, geological and

geophysical infonnation. and engineei ing dala. and (b) the percentage of Unitized Substances to

be allocated as provided in Article XII o each lease. In order to protect federal royalty interests

and pursuant to 30 CFR 250.205. at the Regional Supervisor's discretion, lands with higher

royalty rale leases or leases with a different royally suspension volume may be included in the

Participating Area, ifthe producing or injection wells could intersect or drain those leases. All

lands in said schedule, upon approval ihereof by the Regional Supervisor, shall constitute thc

initial Participating Area, effective as oflhe dale such production commences. The Participating

Area shall be described in parcels no smaller lhan 1/4 x 1/4 x 1/4 blocks.

11.2 Subject to approval of the Regional Superv isor. the Participating Area(s) so

eslablished shall be revised from time to time to include additional land reasonably proven to be

productive in the same manner as provided in Section 11.1 ofthis Article, or lands proven not to

be productive to be excluded in thc sane manner, and Exhibit "C" shall be revised accordingly.

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Thc effective date ofany revision shall he the first of the month in whieh the information is

obtained which provides the basis for the approval of the revision by the Regional Supen isor

provided, however, that a more appropriate effective date may be used if justified by the Unit

Operator and approved by the Regional Supervisor. No land shall be excluded from the

Participating Area(s) on account of depletion ofthe Unitized Substances.

11.3 A separate Participating Area may be established for each accumulation of Unitized

Substances or for any group ihereof w hich is produced as a single pool or zone and any two or

more Participating Areas so established may be combined into one. all subject to approval oflhe

Regional Supen isor.

I 1.4 Nothing herein contained shall bc construed as requiring any retroactive adjustment

for production obtained prior to the effective date ofthe revision ofthe Participating Area.

Article XII—Allocation of Production

12.1 The Unit Operator shall measure unit production and pay or cause to be paid all

produetion royalties and make deliveries ofoil and gas which are payments of royalties taken-in-

kind or which, pursuant to the Act. are purchased by the United States. Unitized Substances shall

be allocated within thc Participating Area(s) on a volumetric basis ofoil and gas in place under

origina] reservoir conditions and proportionally credited to the respective leases committed hereto.

The Unit Operator shall furnish the Regional Supen isor geological and engineering maps and data

sufficient to support the net-acre feel determination for volumelric allocation between leases. Oil

and gas produced from the unit area prior to the effective date of this Agreemenl shall not be

allocated under this Agreement. The royalty payments under leases subject hereto shall bc bascd

and calculated upon the production allocated to the leases as specifically provided herein. The oil

and gas saved, removed, or sold from the Unil Area shall be allocated in this manner, regardless

of where any well is drilled and produced in the Unit Area.

12.2 For the purpose of determining royally obligations. Unitized Substances on whieh

royalty has been paid and w hich are used for repressuring. stimulation of production, or increasing

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ullimate recovery from thc unil area, in conformity wilh an approved pian of operation, may be

deemed to be a portion ofthe gas and liquid-hydrocarbon substances subsequently saved, removed,

or sold from the Unit Area. In such instances, a like amounl of gas and liquid-hydrocarbon

substances similar lo lhal previously used may be saved, removed, or sold from the Unit Area

withoul paying a royalty thereon. However, as to dry gas. only dry gas and not products extracted

therefrom may be saved, removed, or sold royalty free. The royally-free withdrawal shall be

accomplished in accordance with an approved plan of operation and thc amounis of gas and liquid-

hydrocarbon substances withdrawn that are to be recognized as free of royalty charges shall bc

computed in accordance with a formula approved or prescribed by thc Regional Supervisor. Any

withdrawal of royalty-free gas or liquid-hydrocarbon substances shall terminate upon the

lerminalion of this Agreemenl. unless otherwise permitted. For the purposes ol" this paragraph,

liquid-hydrocarbon substances include natural gasoline and liquid-petroleum gas fractions.

Article Xll l -Automatic Adiuslment of Unit Area

13.1 Any lease(s) nol entitled lo receive an allocation of unil production on the third

anniversary ofthe effective dale oflhe initial Participating Area established under this Agreement

shall be eliminated automatically from the Unit Area as of said third anniversary, and thereafter,

the Unit Area shall only be comprised ofthe Participating Area(s) subjecl lo the provisions of

Articles X and XVII .

13.2 I f a lease is no longer subject to this Agreement in accordance wilh the provisions of

this Article, lhal lease shall only be maintained and continued in force and effect in aeeordance with

the terms and provisions contained in the Act. Regulations, and the lease.

Article XIV—Kelinqiiishment of Leases

Pursuant lo the provisions ofthe leases and applicable regulations, a lessee of record shall,

subjeet lo the provisions oflhe Unit Operaling .Agreement, have the righl to relinquish any of its

interests committed hereto, in whole or in part, provided that no relinquishmeni shall be made of

any interests within a Participating Area wiihout the prior approval oflhe Regional Supervisor. In

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the event such relinquishments result in the leasehold interest of only one lease remaining

committed hereto, this Agreement shall tenninate automatically effective as ofthe date that onl\

one lease remains subject to the Agreement.

Article XV—Rentals and Minimum Royalties

15.1 Rentals or minimum royalties due on leases committed hereto shall be paid by the

Working-Interest Owners responsible therefor at the time and rate(s) specified in their respective

lease from the I 'nited States unless such rental or minimum royalty is suspended or reduced by law

or by approval ofthe Secretary.

15.2 If there is production from the Unit Area during the lease year, the amount of royalty

paid for produclion allocated to a lease during the lease year shall bc credited against the minimum

royalty obligation of thc lease.

Article XVI--Kffective Date and I ermination

16.1 This Agreement shall be effective on. June 1. 2019. and shall terminate when oil or gas

is no longer being produced from the Unit Area and drilling or well- reworking operalions are no

longer being conducted in accordance wilh the provisions of Article IX oflhis Agreement. Ifthe

Regional Supervisor has ordered or approved a suspension of operalions or production on all or part

oflhe Unil Area pursuanl lo the regula ions, this Agreemenl shall be continued in force and effect

for a period of time equal to the length of the authori/ed suspension and thereafter so long as

operalions are being conducted in accoidance vvith the provisions of Article IX herein.

16.2 This Agreement may be terminated, with thc approval ofthe Regional Supervisor, at

any lime by an affirmative vote ofthe owner{s) of a majority oflhe Working Interests in each lease

or portion thereof committed to this Agreement or as otherwise specilied in the Unit Operaling

Agreement.

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Art idc WII—Leases and (on tracts (on formed and F.xtcnclcd

17.1 The tenns. conditions, and provisions ofall leases, subleases, and olher conlracls

relating to exploration, drilling, development, or produclion operalions for oil or gas on lands

committed lo this Agreement are hereby modified and amended only lo the cxlenl necessary to

make the same confonn to the prov isions hereof but otherwise shall remain in force and effect.

17.2 The Regional Supen ise r. by thc approval hereof, does hereby establish, alter,

suspend, change, or revoke the drilling, produclion. rental, minimum royalty, and royalty

requiremenls of the federal leases eommilled hereto, lo conform said requirements to the

provisions oflhis Agreemenl. and wilhoul limiling the generality oflhe foregoing, all leases,

subleases, and conlracls are particularly modified in accordance with the following:

(a) Drilling and/or producing operalions performed hereunder upon any uniti/ed lease

will be accepied and deemed to be perfonned upon and for the benefit ofeach and every unitized

lease, and no lease committed to this Agreement shall be deemed to expire by reason of failure to

drill or produce a well ihereon.

(b) Suspension of drilling or produeing operations on all unitized lands, pursuant to

direction or consent of the Secretary or a duly authorized representative, shall be deemed to

constitute such suspension pursuanl lo >ueh direction or consent as to eaeh and every unitized lease.

(c) Suspension of drilling or producing operalions on less lhan all unitized lands,

pursuant lo direction or consent oflhe Secrelaiy or a duly authorized represenlalive. shall be deemed

to constitute such suspension pursuanl to such direction or consent only as to unitized lands

specified in the documenl providing dii ection or consent.

(d) Hach lease committed hereto shall eontinue in force as lo all lands cov ered Ihereby

for the term so provided therein, or as extended by law, and so long thereafter as gas or oil and/or

condensate is produced from a unit well in Paying Quantities, drilling or well-reworking operations

pursuanl to the Regulations are conducted within the Unit Area, or operalions are suspended

14

hereunder as prox ided herein and operations are heing conducted pursuant to the provisions of

Article IX oflhis Agreemenl. I his subsection shall not operate to continue in force any whole lease

excluded from the Unil Area b\ adjus ment pursuant to Articles X or XIII.

17.3 Upon termination oflhis Agreement, the leases eommilled hereto may be conlinued in

force and effect in accordance with the lerms and conditions contained in the Ael. the Regulations,

and the leases.

Article XVIII—( ounterparts

This Agreemenl may be execu ed in any number of counterparts, no one ofwhich needs to

be executed by all parties. If this Agreement is executed in counterparts, all counterparts taken

logelhcr shall have the same effect as if all parlies had signed the same instrument.

Article XIX—Subseiiuent .loimler

The Regional Supervisor may order or. upon requesl. approx e a subsequenl joinder lo this

Agreement pursuanl lo the expansion provisions of Article X. A request fora subsequenl joinder

shall be accompanied by a signed eoun erpart to this Agreement and shall be submilled by the I 'nit

Operator al the time a nolice of proposed expansion is submitted pursuant to Article X. A

subsequent Joinder shall be subject to the requiremenls uhich may be contained in thc Unit

Operating Agreement, if any. except that the Regional Superv isor may require modifications olam

provision in a Unit Operating Agreemenl which would prevent a subsequenl Joinder.

Article XX—Remedies

20.1 The failure oflhe I 'nil Operalor to conducl operations in accordance with an approved

unit plan of operation, to timely submit an acceptable unil plan of operation for approx al bx the

Regional Supervisor, or to comply with any olher requirement of this .Agreement in a timely manner

shall, afler notice of default to the Unit Operator with copies to all Working-lnleresi Oxxners by the

Regional Supervisor and al ter failure ol the Unil Operator to remedy any default within a reasonable

15

time as determined by the Regional Supervisor, resuh in automatic tennination ol this Agreement

effective as ofthe first day ofthe default.

20.2 This remedy is in addition to any remedy which is prescribed in thc Act. the

Regulations, or a lease committed to this Agreement or any action which may be brought by the

United Stales to compel compliance with the provisions thereof.

Article XXI-No Waiver of C ertain kiiihts

Nothing contained in ihis Agreement shall be construed as a waiver by any part) hereto of

the righl to assert any legal or constitut onal righl or defense pertaining to the validity or invalidity

ofany law oflhe United Slales, or regulations issued thereunder, in any way affecting such parly

or as a waiver by any such party of an> right beyond such party's authority to waive.

Article XXII-( ovenants Run With the Land

22.1 The covenants herein shall bc construed to be covenants running with the land with

respect to the interest of the parties hereto and their successors in interest until this Agreement

tenninates. and any grant, transfer, or conveyance of interest in land or leases subject hereto shall

be and hereby is conditioned upon the assumption ofall privileges and obligations hereunder by

the grantee, transferee, or other successor in interest.

22.2 No assignmenl or transfer ofany Working Inleresl or olher inleresl subject hereto shall

be binding upon the Unit Operalor unlil the first day oflhe calendar month afler the Unit Operator

is furnished with the original, photostatic, or ccrtilled copy ofthe instrument of transfer.

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In Witness Whereof, the Working-Interest Owners and the Unit Operator have caused this

Agreement to be executed as follows:

ACCEPTANCE OF RIGHTS AND OBLIGATIONS BY UNIT OPERATOR

I hereby accept and assume all rights and obligations ofthe Unit Operator as set forth above.

Dated: SEP 1 0 2019

Authorized Signature:

Name: Paul G. Walker

Title: Assistant Secretary

Coiporation: Chevron U.S.A. Inc.

Address: IOO Northpark Boulevard, Covington. Louisiana 70433

Subscribed and sworn to me thi > / / ' 'day o i S ^ P f T / ^ f ^ ^ . 2019

Notary Public: ^ ^ i / j f ^ ^

My Commjssi^Tj^m^ JG* CAROL JEAN STURGEON

f i » j f c * i \ Notary Public I S W ' *j STATE OF TIEXAS

*T ID#80603r)9 My Comm. Exp. Sep 09, 2021

APPROVAL BY WORKING-INTEREST OWNER(S)

As an owner of a working interest in the unitized area, I hereby agree to thc terms and

conditions as set forth in this Agreement.

Daled:


Name: Lauren Abnev

Tille: Altorney-in-Fact

Corporation: TOTAL E&P L SA, INC.

Address: 1201 Louisiana. Suile 800, Houslon. Texas 77002

Subscribed and sworn lo me this day of , 2019

Notary Public:

My Commission Expires:

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In Witness Whereof, the Working-Interest Owners and the Unit Operator have caused this

Agreement to be executed as follows:

ACCEPTANCE OF RIGHTS AND OBLIGATIONS BY UNIT OPERATOR

1 hereby accept and assume all rights i nd obligations ofthe Unit Operator as set forth above.

Dated:



I itie: Assistant Secretary

Corporation: Chevron U.S.A. Inc.

Address: 100 Northpark Boulevard. Covington. Louisiana 70433

Subscribed and swom to me this day of , 2019

Notary' Public;


APPROVAL BV WORKING-INTEREST OWNER(S)

As an owner ofa working interest in the unitized area. I hereby agree to the tenns and


Dated: September 10. 2019

Authorized Signature: jfajj^V^x ^Jrv

Name: Lauren Abnev

Title: Attornev-in-Fact

Corporation: TOTAL H&P USA. INC.

Address: 1201 Louisiana. Suite 1800. Houston. Texas 77002

Subscribed and swom to me this lQlh day of September. 2019

Notary Public: 5 ^ ? r

My Commission Expires: 10/26/2022

AM LOWREY , State of Texas es 10-26-2022

Nota'v 'D 13177450G

17

APPROVAL BY WORKING-INTLREST OWNER(S)

As an owner ofa working interest in thejynitized area. I hereby agree to the tenns and


Dated: J~/0 , C J

Authorized Signalure:

Name: S. M. Mam

Title: Attorney-in-Fact

Corporation: Shell Offshore Ine.

Address: Post Oflice Box 61933. New Orleans. Louisiana 70161

Subscribed and swom to me this /(j^day of SCf$CmJ&/L. • 2019

Notary Public: / u g ^ ^ E R , N ^UPRE t ^ ^ ^ r Notary Public

Mv Commission Expires: Bar # 31143

^ C o f ' ' 8 , 9 , 6 0 , L r - ^ -'vy Commission is Fo* , u

APPROVAL BV WORKING-INTEREST OWNER(S)

As an owner ofa working interest in the unitized area. I hereby agree to the terms and

conditions as set forth in this Agreeme it.

Dated:




Corporation: C hey ron U.S.A. Inc.

Ail dress: 100 Northpark Boulevard. Coyington. Louisiana 70433

Subscribed and sworn to me this day of , 2019

Notary Pubiic:


18


As an owner of a working inleresl in the unitized area, I hereby agree lo lhe lerms and

eondilions as sei forlh in ihis Agreemenl.

Daled:

Aulhorized Signalure:

Name: S. M. Ham

Tille: Attornev-in-Fael

Corporalion: Shell Offshore inc.

Address: Posl Office Box 61933, New Orleans, Louisiana 70161

Subseribed and sworn to me ihis day of , 2019

Nolary Public:



As an owner of a working inleresl in the unitized area, I hereby agree to the terms and

conditions as set forlh in this Agreement.

Dated: SEP 1 0 2019




Corporation: Chevron U.S.A. Inc.

Address: 100 Northpark Boulevard, Covington, Louisiana 70433

Subscribed and sworn to me i h i s / f 5 ^ o f ^ ^ ^ ^ ^ 6 ^ ^ 2 0 1 9

Notary Public: ^ ^ ^ / ^ ^ ^ ^ ^ ^ ^ T


ID#8060359 -^•2™-'- Exp. Sep 09, 2021

18

EXHIBIT "A"

GARDEN BANKS BLOCK 913 UNIT

OFFSHORE LOUISIANA

LEASE PLAT


Devetopmerrt and Unitization BSEE Gulf of Mexico Region

GB 868 GB 869

OCS-G 34527

GB STO

GB9I2 (iB 913

OCS-G 34528

GB914

GB 957

OCS-G 36426

GB 958

EXHIBIT B

COMPONENT LEASES AND OWNERSHIP

GARDEN BANKS BLOCK 913

UNIT

OFFSHORE LOUISIANA


Development and Unitization BSEE Gulf of Mexico Region

LEASE BLOCK NUMBER

EFFECTIVE DATE-LEASE

EXPIRATION DATE

AMOUNT OF

ACREAGE

ROVALTV RATE LEASE OWNERSHIP

OCS-G 34527 GB869 11/OI/20I2 10/31/2019 5,760 18 3/4% Chevron U.S.A. Inc. - 50%

TOTAL E&P USA, LNC. - 25% Shell Offshore Inc. - 25%

OCS-G 34528 GB913 10/01/2012 9/30/2022 5,760 18 3/4% Chevron U.S.A. Inc. - 50%

TOTAL E&P USA, INC. - 25% Shell Offshore Inc -25%

OCS-G 36426 GB 957 12/01/2018 11/30/2028 5.760 18 3/4% Chevron U.S.A. Inc - 50%

TOTAL E&P USA, INC. - 25% Shell Offshore Inc. - 25%

CERTIFICATION-DETERMINATION A. Approve the attached ... · 3.2 Exhibit "A." which is attaehed lo...

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