THIS LEASE AGREEMENT is made as of the 28th day of May, 2004, between Texas Lime Company,
15865 FM 1434, Cleburne, Texas 76033, as Lessor, and EOG Resources, Inc., P. O. Box 2267,
Midland, Texas 79702, as Lessee. All printed portions of this lease were prepared by the party hereinabove
named as Lessee, but all other provisions (including the completion of blank spaces) were prepared jointly by
Lessor and Lessee.
1. Description. In consideration of a cash bonus in hand paid and the covenants herein contained, Lessor hereby
grants, leases and lets exclusively to Lessee the following described land, hereinafter called leased premises:
See Exhibit A , attached hereto, for detailed description.
See Exhibit B, attached hereto, for additional provisions.
In the County of Johnson , State of Texas , containing 3453.624 gross acres, more or less for the purpose of
exploring for, developing, producing and marketing oil and gas, along with all hydrocarbon and nonhydrocarbon
substances produced in association therewith. The term “gas” as used herein includes helium, carbon dioxide,
gaseous sulfur compounds, coalbed methane and other commercial gases, as well as normal hydrocarbon gases.
For the purpose of determining the amount of any payments based on acreage hereunder, the number of gross
acres above specified shall be deemed correct, whether actually more or less.
2. Term of Lease. This lease, which is a “paid-up” lease requiring no rentals, shall be in force for a primary term
of eighteen (18) months from the date hereof, and for as long thereafter as oil or gas or other substances
covered hereby are produced in paying quantities from the leased premises or from lands pooled therewith or this
lease is otherwise maintained in effect pursuant to the provisions hereof.
3. Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall be paid by
Lessee to Lessor as follows: (a) For oil and other liquid hydrocarbons separated at Lessee’s separator facilities,