[Letter from Pat Cross to the Chamberses - September 9, 1965] Page: 3 of 10

                                
Producer's 88-(Producer's Revised) (New Mexico) Form 342

Printed and for sale by Hall-Poorbough Press, Roswell, N. M.

OIL AND GAS LEASE
THIS AGREEMENT made this         A   h   day of            September                                            19 65, between
FANNIE CLICK CHAMBERS AND HUSBAND
JAMES S. CHAMBERS
of       Dallas, Texas
(Post Office Address)
herein called lessor (whether one or more) and.CHEVRON                                    OIL    CAMPANY                                            , lessee:
1. Lessor, in consideration of TEN AND OTHER DOLLARS in hand paid, receipt of which is here acknowledged, and of the royalties herein provided and
of the agreements of the lessee herein contained, hereby grants, leases and lets exclusively unto lessee for the purpose of investigating, exploring, prospecting,
drilling, and operating for and producing oil and gas, injecting gas, waters, other fluids, and air into subsurface strata, laying pipe lines, storing oil, building
tanks, roadways, telephone lines, and other structures and things thereon to produce, save, take care of, treat, process, store and transport said minerals,
the following described  land  in     Roosevelt                           County, New Mexico, to-wit:
NE/4 NE/h, SW/4 IE/h of Section 33, Tovnship 5 South, Range 32 East,
N.M.P.M.
For the purpose of calculating the rental payments hereinafter provided for, said land is estimated to comprise  acres, whether it actually
comprises more or less.
2. Subject to the other provisions herein contained, this lease shall remain in force for a term of        from this date (called "primary term"), and as
long thereafter as oil or gas, is produced from said land or land with which said land is pooled.
3. The royalties to be paid by lessee are: (a) on oil, and on other liquid hydrocarbons saved at the well, one-eighth of that produced and saved from said land,
same to be delivered at the wells or to the credit of lessor in the pipe line to which the wells may be connected ; (b) on gas, including casinghead gas and all gas-
eous substances, produced from said land and sold or used off the premises or in the manufacture of gasoline or other product therefrom, the market value at
the mouth of the well of one-eighth of the gas so sold or used, provided that on gas sold at the wells the royalty shall be one-eighth of the amount realized
from such sale; (c) and at any time when this lease is not validated by other provisions hereof and there is a gas well on said land, or land pooled therewith,
but gas is not being so sold or used and such well is shut in, either before or after production therefrom, then on or before 90 days after said well is shut in,
and thereafter at annual intervals, lessee or any assignee hereunder may pay or tender an advance annual royalty equal to the amount of delay rentals provided
for in this lease for the acreage then held under this lease by the party making such payment or tender, and so long as said advance royalty is paid or tendered
this lease shall not terminate and it will be considered under all clauses hereof that gas is being produced from the leased premises in paying quantities. Such
payments may be paid or tendered in the depository bank and in the same manner as provided herein for the payment or tender of delay rentals.
4. If operations for drilling are not commenced on said land or on land pooled therewith on or before one (1) year from this date, this lease shall terminate
as to both parties, unless on or before one (1) year from this date lessee shall pay or tender to the lessor a rental of $  ho4 Q o"                   which
shall cover the privilege of deferring commencement of such operations for a period of twelve (12) months. In like manner and upon like payments or tenders,
annually, the commencement of said operations may be further deferred for successive periods of the same number of months, each during the primary term.
Payment or tender may be made to the lessor or to the  (~rr&PTli        & _  VeAenue  State     Bank                                                 Bank
tbeDallas,           Texas                                                                              , which bank, or any successor thereof, shall
continue to be the agent for the lessor and lessor's heirs and assigns. If such bank  (or any successor bank) shall fail, liquidate, or be succeeded by another
bank, or for any reason shall fail or refuse to accept rental, lessee shall not be held in default until thirty (30) days after lessor shall deliver to lessee a re-
cordable instrument making provision for another acceptable method of payment or tender, and any depository charge is a liability of the lessor. The payment
or tender of rental may be made by check or draft of lessee, mailed or delivered to said bank or lessor, or any lessor if more than one, on or before the rental
paying date.
5. Lessee is hereby granted the right and power, from time to time, to pool or combine this lease, the land covered by it or any part or horizon thereof
with any other land, lease. leases, mineral estates or parts thereof for the production of oil or gas. Units pooled for oil hereunder shall not exceed forty (40)
acres plus a tolerance of 10%, and units pooled for gas shall not exceed the standard proration unit fixed by law or by the New Mexico Oil Conservation Com-
mission or by other lawful authority for the pool or area in which said land is situated, plus a tolerance of 10%. Lessee shall file written unit designations
in the county in which the premises are located and such units may be designated from time to time and either before or after the completion of wells. Drilling
operations on or production from any part of any such unit shall be considered for all purposes, except the payment of royalty, as operations conducted upon or
production from the land described in this lease. There shall be allocated to the land covered by this lease included in any such unit that portion of the total
production of pooled minerals from  wells in the unit, after deducting any used in lease or unit operations, which the number of surface acres in the land
covered by this lease included in the unit bears to the total number of surface acres in the unit. The production so allocated shall be considered for all purposes,
including the payment or delivery of royalty, to be the entire production of pooled minerals from the portion of said land covered hereby and included in said
unit in the same manner as though produced from said land under the terms of this lease. Any pooled unit designated by lessee, as provided herein, may be
dissolved by lessee by recording an appropriate instrument in the County where the land is situated at any time after the completion of a dry hole or the ces-
sation of production on said unit.
6. If prior to the discovery of oil or gas hereunder, lessee should drill and abandon a dry hole or holes hereunder, or if after discovery of oil or gas the
production thereof should cease for any cause, this lease shall not terminate if lessee commences reworking or additional drilling operations within 60 days
thereafter and diligently prosecutes the same, or (if it be within the primary term) commences or resumes the payment or tender of rentals or commences
operations for drilling or reworking on or before the rental paying date next ensuing after the expiration of three months from date of abandonment of said
dry hole or holes or the cessation of production. If at the expiration of the primary term oil or gas is not being produced but lessee is then engaged in opera-
tions for drilling or reworking of any well, this lease shall remain in force so long as such operations are diligently prosecuted. If during the drilling or re-
working of any well under this paragraph, lessee loses or junks the hole or well and after diligent efforts in good faith is unable to complete said operations,
then within 30 days after the abandonment of said operations lessee may commence another well and drill the same with due diligence. If any drilling, ad-
ditional drilling, or reworking operations hereunder result in production, then this lease shall remain in full force so long thereafter as oil or gas is produced
hereunder.
7. Lessee shall have free use of oil, gas and water from said land, except water from lessor's wells and tanks, for all operations hereunder, and the royalty
shall be computed after deducting any so used. Lessee shall have the right at any time during or after the expiration of this lease to remove all property and
fixtures placed by lessee on said land, including the right to draw and remove all casing. When required by lessor, lessee will bury all pipe lines on cultivated
lands below ordinary plow depth, and no well shall be drilled within two hundred feet (200 ft.) of any residence or barn now on said land without lessor's
consent. Lessor shall have the privilege, at his risk and expense, of using gas from any gas well on said land for stoves and inside lights in the principal dwell-
ing thereon, out of any surplus gas not needed for operations hereunder.
8. The rights of either party hereunder may be assigned in whole or in part and the provisions hereof shall extend to the heirs, executors, administrators,
successors, and assigns, but no change or division in ownership of the land, rentals, or royalties, however accomplished, shall operate to enlarge the obligations
or diminish the rights of lessee ; and no change or division in such ownership shall be binding upon lessee for any purpose until 30 days after lessee has been
furnished by registered mail at lessee's principal place of business with acceptable instruments or certified copies thereof constituting the chain of title from
the original lessor. If any such change in ownership occurs through the death of the owner, lessee may pay or tender any rentals or royalties to the credit of
the deceased or his estate in the depository bank until such time as lessee has been furnished with evidence satisfactory to lessee as to the persons entitled to
such sums. In the event of an assignment of this lease as to a segregated portion of said land, the rentals payable hereunder shall be apportioned as between
the several leasehold owners ratably according to the surface area of each, and default in rental payment by one shall not affect the rights of other leasehold
owners hereunder. An assignment of this lease, in whole or in part, shall, to the extent of such assignment, relieve and discharge lessee of any obligations
hereunder, and, if lessee or assignee of part or parts hereof shall fail or make default in the payment of the proportionate part of the rentals due from such
lessee or assignee or fail to comply with any other provision of the lease, such default shall not affect this lease in so far as it covers a part of said lands up-
on which lessee or any assignee thereof shall so comply or make payment of said rentals.
9. Should lessee be prevented from complying with any express or implied covenant of this lease, or from conducting drilling or reworking operations here-
under, or from producing oil or gas hereunder by reason of scarcity or inability to obtain or use equipment or material, or by operation of force majeure, or
by any Federal or state law or any order, rule or regulation of governmental authority. then while so prevented, lessee's duty shall be suspended, and lessee
shall not be liable for failure to comply therewith; and this lease shall be extended while and so long as lessee is prevented by any such cause from conducting
drilling or reworking operations on or from producing oil or gas from the leased premises ; and the time while lessee is so prevented shall not be counted against
lessee, anything in this lease to the contrary notwithstanding.
10. Lessor hereby warrants and agrees to defend the title to said land, and agrees that lessee, at its option, may discharge any tax, mortgage, or other
lien upon said land, and in the event lessee does so, it shall be subrogated to such lien with the right to enforce same and apply rentals and royalties accruing
hereunder toward satisfying same. Without impairment of lessee's rights under the warranty, in the event of failure of title, it is agreed that if lessor
owns an interest in said land less than the entire fee simple estate, then the royalties, and rentals due lessor shall be reduced proportionately; should any one or
more of the parties named above as lessors fail to execute this lease it shall nevertheless be binding upon the party or parties executing the same.
11. Lessee, its/his successors, heirs and assigns, shall have the right at any time to surrender this lease, in whole or in part, to lessor or his heirs, succes-
sors and assigns by delivering or mailing a release thereof to the lessor, or by placing a release thereof of record in the county in which said land is situated;
thereupon lessee shall be relieved from all obligations, expressed or implied, of this agreement as to acreage so surrendered, and thereafter the rentals payable
hereunder shall be reduced in the proportion that the acreage covered hereby is reduced by said release or releases.
Executed the day and year first above written.

Fannie Click Chambers

James S. Chambers