Plan of Unit Operations for the Imperial Brandt and Imperial Brawley Units (respectively, the "Unit Agreements" and the "Units")

Transcription

1 O'MELVENY & MYERS 1800 M STREET, N. W CENTURY PARK EAST 400 SOUTH HOPE StREET WASt-jINGTON. O. C LOS ANGELES. CALIFORNIA 90071~Ze9g TELEPHONE (ZOal LOS ANGELES, CALlF"ORNIA '11589 T LEPHONE (213) TELEX TELEX todd) TELEPHONE tal,!} ,.,p!'TH AVENUE 610 NEWPORT CENT 'R DRivE NEW VORK, NEW YORK TELEX NEWPORT BEACH, CALIFORNIA 92650~6429 TELEPHONE UZlzl TELEPHONE.714\ 760-geoo (213) TI:L X TELEX (OOtH ~ 47220e9 (lttj March... PLACE DE LA CONCORD : paris a",,.rance 1st OUR FILE: NUMBE:R TELEPHONE TELEX ,157-1 Mr. Doug Stockton Geothermal Officer Division of Oil and Gas Plan of Unit Operations for the Imperial Brandt and Imperial Brawley Units (respectively, the "Unit Agreements" and the "Units") Dear Doug: Enclosed as you requested are copies of the leases covering all the leased parcels that are to be made subject to the Unit Agreements. Also enclosed is a cover sheet for each set of leases that explains how Imperial Energy succeeded to the interest of the original lessee under those leases. section 3.2 of the enclosed leases contains a very explicit and unequivocal consent to unitization and requires only that the proposed Plan of Unit Operations be submitted to the royalty interest owners at least 90 days prior to submission to the State for approval, a step that was taken by Imperial Energy in October, As you will see, the Unit Agreements have been carefully tailored to meet the requirements of the leases with respect to unitization, which, as I have stated in previous correspondence, accounts for some of the unique features of these particular Unit Agreements. I am delighted to hear that we are almost completed with this process. Imperial recently obtained drilling permits for the first two unit wells it plans to drill and accordingly they are anxious to commence their operations as soon as possible.

2 #2 - Mr. Doug Stockton - 3/1/84 Once again, we very much appreciate your help in this matter. Please don't hesitate to call me if you have any further questions or comments. Best regards, ~qi~d:oc?~ LeigPs;echeen ~or O'MELVENY & MYERS Enclosures cc: Michael B. Malvin Gregg Oppenheimer, Esq.

3 O'MELVENY & MYERS 1800 M STREltT. N. W CENTUR,'" PARK EAST 400 SOUTH HOPE STREET WASHtNGTON. D. C, LOS ANGELES, CALIFORNIA TELEPHONE {Z "5300 LOS ANGELES, CALIF"ORNIA TELEPHONE (2131 egg-esooe T LEX 89~62Z TELEX IOOO} e80 FIFTH AVENUE NEW YORK, NEW YORK TELEPHONE {ZI3) $ NEWPORT CENTER DRIVE NEwPORT BEACH, CALIFORNIA TELEPHONE (212) TELEPHONE ( ) TELEX February 4 PLACE DE LA CONCOROE 21st PAR'~5 eoii', FRANCE TELEPHONE TELEX B4tHSe07tS telex i114) (000) 472:20e8 (ITT) OUR FILE NUMBE.R: 410,157-1 Mr. Doug Stockton Division of Oil and Gas Plan of Unit Operations for the Imperial Brandt and Imperial Brawley Units (respectively, the "Unit Agreements" and the "Units") Dear Doug: Enclosed in accordance with your request are lists of all the royalty interest owners who have an interest in the Units, which lists also reflect the percentage of the total royalty interest in each Unit attributable to each parcel. The amount of the royalty being paid to each royalty interest owner is 10% on geothermal resources and l2~% on most other resources covered by the leases., )~ /A The enclosed lists can be kept separately for your,~} "~ files or incorporated into the actual Unit Agreements in,~)i ~.,,,'; ()". lieu of the existing "Exhibit A (Continued)" page, as you,/~"""" desire. We would be happy to re-velobind the Unit Agreements!'n )." ' should you decide to follow the latter course. ati:~ Once again, we very much appreciate your cooperation and assistance on this matter. Please donlt hesitate to contact me if you have any further questions or comments. Enclosures cc: Michael Malvin (w/encl) Gregg Oppenheimer, Esq. Very truly yours, II ; ;[ f /'., (y-~+. tz-.tr:, ''-1.'2.'''' Leigh Brecheen for O'MELVENY & MYERS

4 O'MELVENY & MYERS 1800 M STREET, N, W. ISOO CENTURY PARK EAST 400 SOUTH HOPE STREET WASHIf'tGTON, 0, C LOS ANGELES. CALIF'ORNIA TELEPHONE,z02J LOS ANGELES, CALIFORNIA TELEPHONE (213) seq-sooa TEL.EX e9~e22 TELEX (ODD) eso F"FTH AVENUE TELE:PHONE 1213} (5"0 NEWPORT CENTER CRIVE NEW YORK, NEW YORK '0019 TELEX e7~4097 NEWPORT BEACH. CALIFORNIA 928eO-6429 TELEPHONE {21z TELEPHONE i ~ (213) SS TELEX (714) IODOl 41220ee (ttt} TELEX '21006 February 4 PLACE DE LA CONCORDe: PARIS s*, FRANCE 8th OUR FILE NUMBER TELEPHONE TELE:X ) E C EnV E ~lo'157-1 Mr. Doug Stockton un feb UJJ Geothermal Officer Division of oil and Gas Dear Doug: Plan of Unit Operations tor Imperial Brandt Unit and Imperial 'Brawley Unit (the "Unit Agreements") Thank you for your telephone call of February 3, Pursuant to your request I am enclosing two (2) fully executed notarized Unit Agreements, one for the Imperial Brawley Unit and one for the Imperial Brandt Unit. Several minor changes to the Unit Agreements have also been made and they are listed below. 1. Imperial Energy is now described on page 1 as a Delaware corporation rather than a California corporation. The reason for this change is because, effective February 15, 1984, Imperial Energy, a California corporation, will merge into Imperial Energy, a Delaware corporation. We had originally hoped that the Unit Agreements would be effective before the merger took place, but as it now looks as though this will occur subsequent to the merger, it is necessary that the Delaware Imperial Energy be listed as the Unit Operator/Working Interest Owner. 2. Exhibit A has been revised in two respects the first is that parcel numbers have been assigned to all the parcels within the boundaries of each unit, whether or not the owners thereof have consented to their becoming part of the unit. Secondly, an additional page has been added to Exhibit A which gives the acreage and percentage of total unit acreage that each numbered parcel comprises.

5 #2 - Mr. Doug Stockton - 2/8/84 3. Exhibit B has been revised to reflect the existence of the unleased parcels within the boundary of each unit. / There are a number of places in each of the Unit Agreements where dates need to be filled in. Imperial Energy intends to make the Unit Agreements effective at the earliest possible moment after the Division of Oil and Gas approves them, but since the date for such approval is still unknown, we did not want to insert dates that might later prove to be inaccurate. Once again, we cannot thank you enough for your very helpful comments and your assistance in helping us to get the enclosed Unit Agreements into proper form. Please do not hesitate to contact the undersigned if you have any questions or comments regarding the foregoing or the enclosures. Enclosures cc: Michael Malvin Very truly yours, 4', v...,jdv;.;j~( f/: ( (:') 1 f~ Leigh Brecheen for O'MELVENY & MYERS

6 O'MELVENY 6. MYERS ISOO M STREET, N. W CENTURY PARK EAST 400 SOUTH HOPE STREET WASHIl'iGTON. 0, C. Z0036~5e57 LOS ANGELES, CALIFORNIA e99 TEL.EPHONE (:202) LOS ANGELES, CALIFORNIA TELEPHONE (21.3) 669-($000 TELEX TELEX (000) eeo F'IF'TH AVENUE TELEPHONE {2'3} 15153' NEWPORT CENTER DRiVE NEW YORK, NEW YORI< TELEX NEWPORT BEACH, CALIFORNIA TELEPHONE (212) TELEPHONE ( (ih)) TELEX (714) 720 MI397 TELEX '27005 (DOD) (ITT) January 4 PLACE DE LA CONCORD : 30th PAR'S, F'RANCE TEL.EPHON E ~33 OUR FILE NUMBER e fl TEL.EX B42~ ,157-1 M. G. Mefferd Supervisor Division of Oil and Gas Submission of Plans of Unit Operations for Imperial Brandt Unit and Imperial Brawley Unit (the "Unit Agreements") Pursuant to Public Resources Code 3756 Dear Mr. Mefferd: This firm represents Imperial Energy Corporation who is, at present, the sole lessee and working interest owner under the enclosed Unit Agreements (which themselves are identical except for the lands that they affect) and which bear date codes of 10/20/83. We are herewith submitting the Unit Agreements to you for approval pursuant to 3756 of the California Public Resources Code. Prior to our submission of the Unit Agreements to the lessors for their review, as required by Imperial Energy's leases, we asked Mr. Doug Stockton of your office to review the previous draft of the Unit Agreement. He made several suggestions that we incorporated into the present draft and then submitted to our lessors. The only suggestions of Mr. Stockton that were not included relate to specific details on allocating items such as costs and expenses that we believe should be negotiated if and when other working interest owners join the Units and Unit Operating Agree~ents are prepared. Imperial hopes to begin its operations on the Units in the very near future. We would greatly appreciate your moving ahead with the approval procedure at your earliest convenience. We are ready and willing to provide any assistance that we can explaining any of the matters contained in the Unit Agreements and Imperial's plans for its operations under the Unit Agreements.

7 #2 - M. G. Mefferd - 1/30/84 Thank you for your consideration and cooperation. Very truly yours, ~~~ Leigh Brecheen for O'MELVENY & MYERS cc: Michael Malvin