* KERRVILLE TITLE COMPANY
29O THOMPSON DR. • KERRVILLE. TEXAS 78O2H
~~(~~c~~
ANN ROBERTSON
OWNER/PRE91DENT
Kerr County, Texas
c/o County Judge
Kerr County Courthouse
700 Main Street
Kerrville, Texas 78028
August 6, 2002 (830) 896-5811
FAX (830) 792-3949
Re: 0.17 acre; Sheppazd Rees Road, Ken County, Texas
Dear Sir:
Enclosed is the Owner's Policy of Title Insurance No. 175-188917, dated June 3, 2002, in
the amount of $2,100.00, issued by Commonwealth Land Title Insurance Company.
It was a pleasure handling this transaction for you and if we can be of any further
assistance, please let us know.
Sincerely,
Ann Robertson

gl
Enclosure
GF#2002490

ISSUED BY
COMMONWEALTH LAND TITLE INSURANCE COMPANY OWNERrS POLICY OF TITLE INSURANCE
Commonwealth
A LANDAME0.ICA COMPANI'
POLICY NUMBER
1~5-188911
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND
THE CONDITIONS AND STIPULATIONS, Commonwealth Land Title Insurance Company, a Pennsylvania corporation, herein called the
Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in
Schedule A, sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Any statutory or constitutionalmechonic's, contractor's, or materialman's lien for labor or material having its inception on or before Date of
Policy;
4. Lack of a right of access to and from the land;
5. Lack of good and indefeasible title.
The Company also will pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent
provided in the Conditions and Stipulations.
IN W ITNESS W HEREOF, COMMONWEALTH LAND TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto
affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company.
COMMONWEALTH LAND TITLE INSURANCE COMPANY
/ / ~/,
Attest / / ~4~( /. JJ~I
LLL/// (/r'/ ~'C / Secretary
s By. U
V ~ ~ President
r
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs,
attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of
any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or
any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting
from a violation or alleged violation affecting the land has been recorded in the putilic records at Date of PDlicy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect,
lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of
Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding
from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without
knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in
writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy;
(e) resulti ng in loss or damage that would not have been sustained if the insured claimant had paid val ue for the estate or interest i nsured by
[his policy.
4. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A
because of unmarketability of the title.
5. Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this
policy, by reason of the operation of federal bankruptcy, slate insolvency, or other state or federal creditors' rights laws that is based on either
(i) the transaction creating the estate or interest Insured by this Policy bei ng deemed a fraudulent conveyance or fraudulent transfer or avoid-
abledistribution or voidable dividend, (ii) the subordination or recharacterization of the estate or interest insured by this Policy as a result of
the application of the doctrine of equitable subordination or (iii) the transaction creating the estate or interest insured by this Policy being deemed
a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record
the instrument of transfer to the insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgment
or lien creditor
Texas Owner Policy T-1 (Rev 1-1-93)
Face Page
FOPRI 1178-1 ORIGINAL Valid Only If Schedule A, B and Cover Are Attached
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS.
The following terms when usetl in this policy mean:
(aj "Insured" the insured named in Schedule A,and, subject to any rights or defenses
the Company would have had against the nametl insured, those who succeed to the interest of
the named insured by operation of law as distinguished from purchase inclutling, but not
limitetl [o, heirs, tlistributees, devisees, survivors, personal representatives, next of kla, or
corporate, partnership or fiduciary successors, antl specifically, without Ilmitatioq the follow-
ing:
(p the successors In lnteras(toacorporahanresultingfmmmergerorconsohda-
tion or the tlis[ribuhon of the assets of [he corporation upon parhal or complete liquidation,
gq the partnership successorsmmlerest toageneral orllmited partnership which
dissolves but does not terminate,
(iii) the successors in interest to ageneral or limited partnership resulting from the
distribution of the assets of the general or limited partnership upon parhal or complete
hgmdanon:
(ivj [he successors in lnleresuo ajoint venture resulting from the tlis(nbution of the
assets of the joint venture upon partial or complete ligmtlation.
(v) the successor or substitute trustee(s) of a trustee nametl in a written trust
ihshumenP, or
Ivi) the successors in interest to atrustee ortrus[resulting from the tlistnbutinn of
all or part of the assets of the (rust to the benehcianes (hereof.
(bl "insured claimant" an insured claiming loss or tlamage
Iq "knowledge" or "known" actual knowledge, not constructive knowletlge or nonce
[hat may be imputetl to an msuretl by reason of the public records as defined in (his policy or
any other records which impart constructive notice of matters affecting the land
Idl "land' the land described or referred to In Schedule A, antl improvements affixed
thereto that by law constitute real property The term "land' dues not include any property
beyond [he Imes of the area described or referred to In Schedule A, nor any right. IRIe, interest.
estate or easement m abutting streets, roatls, avenues, alleys, lanes, ways or waterways, but
nothing herein shall modify or limit the extent m which a right of access to and Irom the land Is
insured by this policy.
(ej "mortgage" mortgage, tleed of [rust, trust deed or other security insVUment.
Ilj "public recortls" records establishetl untler state steWtes at Date of Polley for the
pm pose of imparting consVUCtive notice of matters relating ro real property to purchasers far
value and without knowletlge. With respect to $edion 11aj(iv) o! the Exclusions Frum Cover
age, "public records" also shall'mdude environmental protection liens bled m the recortls of
the clerk of [he Umtetl States dslnd COUrI for the tlistnct in which the land Is located.
ig) "access" legal right of access to the land antl not the physical condition of access
The noverage provided as to access tloes riot assure the adequacy of access for the use
intended
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE.
The coverage of this policy shall conllnue m force as of Date of Policy .n favor of an
insured only so long as the insured retains an estate or interest in [he land, of holtls an
intlebledness secured by a purchase money mortgage given by a purchaser from the msuretl.
or only so long as Ilia insured shall have liability by reason of covenants of warranty made by
the msuretl In any t2nsfer or conveyance of [he estate or interest This pobcy shall not
continue in lorce in lavor of any purchaser Irom the insured of Dither (i) an estate of interest in
the land, or pl I en intlebtetlness securetl by a purchase money mortgage given fo the Insured
3. NOTICE OF CLAIM TO BE GIVEN BV INSURED CLAIMANT.
The msuretl shall notify the Company promptly In writing i I) In case o! any Iltigaton as sal
forth m Section 41a) below, or lip m case knowletlge shall come [o an insured hereunder of any
claim of title or interest [hat is adverse to the Otle m the estate or miscast, as msuretl antl Thal
might cause loss or damage for which the Company may be liable by virtue of this policy. If
prompt notice shell not be given to the Company, then as to the Insured all liability of the
Company shall terminate with regartl to [he matter or masers for which prompt notice
requred, provded, however, Thal ladure to notify the Gornpany shall in no case prerydlce the
rights of any insured untler this policy unless the Company shall be prelutliced by the fatlure
and then only io the extent of the prejudice
When. alter the date of the policy, the Insured notifies the Company as regwretl herein of
a lien, encumbrance, atlverse claim or other tlefed m tills to the estate or interest in the land
insured by this policy that w no[ excluded ar excepted from the coverage of Ihls policy, the
Company shall promptly Investigate the charge to determine whether the lien, encumbrance,
adverse claim or tlelect is valid antl not barred by law or statute. The Company shall nobly the
msuretl in wnnng, wtthin a reasonable time, of its determination as to the valitlity or invalidity of
the inswetl's claim or charge under the policy If the Company concludes that the hen,
encumbrance, atlverse claim or defect is not covered by ihls policy, or was otherwise
atltlressed in the closing of the transaction In connection with whmh this pobcy was issued the
Company shell spemhwlly edwse the msuretl o! the reasons for Its tletermination. If the
Company concludes that the lien, encumbrance, atlverse claim or tlefed Is valid, the Compa-
ny shall take one of the following actions: fit Institute Ne necessary proceedings to clear the
lien, encumbrance, adverse claim or defect from the title to the estate as insured: (iii intlemnify
the insured as provided in this policy, trig upon payment of apPiopria[e premium and chmges
therefor, Issue to the Insured claimant or to a subsequent owner, mortgagee or holder o1 ilia
estate or interest in [he land insured by this pobcy, a pobcy of title insurance without exception
!or (he lien, encumbrance, adverse claim or defect. said policy to be in an amount equal to the
current value of the property or, II a mortgagee policy, the amount of the loan; (IVJ Indemnify
another title insurance company m connection with its issuance of a pohcypesl of title
insurance without exception for the lien, encumbrance, atlverse claim or tlelect; Iv) secure e
release or other document discharging the lien, encumbrance, atlverse claim or tlelect. or (vi)
undertake a combinatlon of (i) through (v) herein
4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED
CLAIMANT TO COOPERATE.
(a) Upnn written request by the insured antl subject to the options containetl in Sechon6
o! these GOndNOns antl Shpulations.IDe Company, at its own cast and without unreasonable
tlelay, shall provitle for the tlefense of an insured in litigation in which any third party asserts a
claim atlverse to the title or interest as insured but only as to those stated causes of action
alleging a defect, lien or encumbrance or other matter insured against by this policy The
Company shall have the right to select counsel of its choice (subject to the right of the msuretl
to object for reasonable cause) to represent the msuretl as to those stated causes of action
and shall not be liable for and will not pay the fees of any other counsel. The Company will not
pay any fees, costs or expenses incurred by the Insured In the defense of those causes of
action that allege matters not msuretl against by this policy.
(b) The Company shall have the right, at its awn cos[, to institute and prosecute any
action or proceeding or to do any other act that In its opinion may be necessary or desirable to
establish the title to the estate or interest, as msuretl, or to prevent or retluce loss or damage fo
the insured. The Company may take any appropriate action under the terms of this pobcy,
whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any
provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do
so tliligently
(c) Whenever the Company shall have brought an achon or interposed a defense as
regmretl or permitted by [he provisions of [his policy, the Company may pursue any litigation to
final tletermmahon by a court of competent lunsdiction antl expressly reserves the right, in its
sole discretion, to appeal from any atlverse judgment or order
(d) In all cases where this policy permits or requires the Company to prosecute or
promtle for the defense of any achon or proceeding. the insured shall secure to the Company
the ngM to so prosecute or provitle tlefense in the achon or proceeding, and all appeals
therein, and permit the Company to use, at Its option. the name of the msuretl for this purpose.
Whenever requestetl by [he Company, the insured, at [he Company's expense, shall give the
Company all reasonable aid (p In any action or proceeding, securing evidence, obtaining
witnesses, prosecuting or defending the achon or proceeding, or effecting settlement, antl (iij
in any other lawful act that in the opinion of [he Company may be necessary or desirable to
establish the title to the estate ar interest as msuretl If the Company is prejudiced by thefailure
of the insured to furnish the required cooperation, the Company's obligations m the insured
under the policy shall terminate. including any babdlty or obligation to tlefend, prosecute, or
continue any Iltigation, with regard to the matter or matters requiring such cooperation
5. PROOF OF LO55 OR DAMAGE.
In addition to and after the notices required under Section 3 of these Conditions and
Stipulations have been provided the Company, a proof of loss or damage signed and sworn tc
by the insured claimant shall be furnishetl to the Company within 91 days after the msuretl
claimant shall ascertain the tads giving rise to the loss or damage. The proof of loss or
tlamage shall describe the defect iq or lien or encumbrance on the title, or other matter
msuretl against by this policy [hat constitutes the basis of loss or tlamaye antl shall state. io
the extent possible, the basis of calculating the amount of the loss or damage. If the Company
is prejutlmed bV the faJUre of the msuretl claimant io provitle the required proof of loss or
damage. the Company's obligations to the Insured under the policy shall terminate, inclutling
any liability or obligation to tlefend prosecute, or contnue any litigation, with regard fo the
matter or matters requiring such proof of loss or damage.
In addition the insured claimant may reasonably be regwred to submit to examination
under oath by any authorized representative of the Company and shall pfoduce for examine
Iron, inspection and copying. at such reasonable times antl places as may be designated by
any authorized representative n! the Gompanv, all records, books, ledgers, checks, corre-
spondence and memoranda, whether bearing a dale before or after pate of Policy, which
reasonably pertain to the loss or damage Further, if requestedbyanyauthorizedrepresenle-
tive of the Company, the insured claimant shall grant its permission, In writing, for any
authorized representative of the Company to examine, inspect antl copy all records, books,
ledgers. checks, correspondence and memoranda m the custody or control of a (hirtl parry,
which reasonably pertain to [he lass or tlamage All information tlesignaled as contidenP.al by
the insured claimant provided to the Company pursuant to this Section shall not be tlisclosetl
to others unless, m the reasonable judgment o(the Company, It is necessary in the atlministra
^on of the claim Failure of the insured cleimanl to submit for examination under oath,produce
other reasonably requested information or grant permission to secure reasonably necessary
mlormabon hom thmd parties as regwred in this paragraph shall terminate any liability of the
Company untler this policy as to the[ claim.
6. OPTIONS TO PAV OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY.
In case of a claim under [his policy.. the Company shall have the following adtlihonal
options.
(al Tu Pay or Tender Payment of the Amount o! Insurance
To pay or tender payment of the amount of insurance untler this pobcy, together with any
costs, attorneys fees and expenses incurred by the insured claimant which were authorized
by the Company, up to the time of payment or tender of payment and which the Company Is
obligated to pay.
Upon the exercise by the Company of this option. all liability and obligations to the
insured under this pobcy, other than to make [he payment requved. shall lermmale, mduding
any bahility or obllgatinn to tlefend, prosecute, or continue any litigation. and the policy shall
be surrendered to the Company for cancellation
Ib) To Pey or Otherwise Settle With Parses Other than the Insured or Whh the Insured
Claimant.
(g to pay or ofhenvise settle with other padres for or In the name of an insured
claimant any claim msuretl against untler this pobcy, together with any casts, attorneys fees
and expenses incurred by the insured claimant which were authonzetl by the Company up to
the time of payment antl which the Company is obligated to pay, or
(iii io pay or otherwise settle with the insured claimant the loss or damage provitletl
far untler this polmy, together with any costs, attorneys fees and expenses Incurred by the
insured claimant wNCh were authonzetl by the Company up to [he lime of payment and which
[he Company is obligated to pay.
Upon the exercise by the Company of either of the options provided for in paragraphs
(big) ar tip, the Company's obligations to the insured under this policy for the claimed loss or
damage, other than the payments required to be made, shall terminate, inclutling any liability
or obligation to defend prosecute or continue any litigation.
B 1778-~
OWNER POLICY OF TITLE INSURANCE
SCHEDULE A
G.F. No. 2002490
Policy No. 175-188917
Amount of Insurance: $2,100.00
Premium: $270.00
Date of Policy: June 3, 2002, 2:41 pm
1. Name of Insured: KERR COUNTY, TEXAS
2. The estate or interest in the land that is covered by this policy is: Fee Simple
3. Title to the estate or interest in the land is insured as vested in: KERB COUNTY, TEXAS
4. The land referred to in this policy is described as follows:
Issued with Policy No. N/A
All that certain tract or parcel of land, lying and being situated in the County of Kerr, State of Texas, and being
more particularly described on Exhibit "A" attached hereto and made a part hereof for all purposes.
COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE OR SQUARE FOOTAGE
CALCULATIONS ARE CORRECT.
Commonwealth Land Title
Insurance Company
FIELD NOTES DESCRIPTION FOR 0.17 ACRE OP LAND OUT OF
THE MCRAE ENERGY CORP. LAND ALONG SHEPPARD REFS
ROAD 1N KERR COUNTY, TEXAS
Bcing all of a certain tract or parcel of land containing 0.17 acre, mare or Tess, out oC T.F. [ Io1lis Survey No. 143, Abstract No. V 8
in Kerr County, Texas; part of a certain ].3 acre tract conveyed from C. Marc Sherron to McRae Energy Corp. by a Special
\Van'anty Deed executed the 25's day of Ocotber, 2001 and recorded in Volume 1 150 at Page 356 of the Real Property Records of
Kerr County, Texas; and being more particularly described by metes and bounds as follows:
BEGINNING at a 5:" iron stake set in the northwest line of said 1.3 acre tract and southeast line of a certain 270 acre n'act
conveyed from D.A. Rees, et ux, to Eugene Wi]ke, e[ ux, by a Warranty Deed with Vendor's Lien executed the 2G"' day of March,
1963 and recorded in Volume 114 a[ Page 577 of the Deed Records of Kerr County, Tesas for the nonhwest corner of the herein
described tract; which point bears: 133.1 R. S.45°18'W. from the north corner of said 13 acre tract: and, approximately 4763 ft.
N 4S°E. from the southwest corner of said Survey No. 143;
THENCE, upon, over and across said 1.3 acre tract 418.S2 ft. along the arc of an 08°49' curve to the left subtended b} a 36"SS'04"
cenual ante and 650.00 ft. radius (long chord= S.73°4714"E., 41 L61 ftJ to a point in the north right-of-~cn~ line of Sheppard
Rees Road, a fort}' (40) ft. wide road oasement conveyed Crom tite State of Tesas to Karr County by an Easement and Right-o]-
\Vay Deed executed the 25°i day of July, 1955 and recorded in Volume 2 at Paee 3ti5 of the Easement Records of Ken' County,
Tesas for the east corner of the herein described tract;
TIiENCE, continuing upon, over and across said 1.3 acre tract with the said north ri~_ht-o6tsay line of Sheppard Rees Road:
5.61 °07'Od"W., 2.54 ft. [o a point at the beginning of a 31 °50' cure [o [he riche 1Sti.43 ft. along the arc of said curve to the rich[
subtended by a 49°-1734" central angle and 180.00 R. radius (Ions chord: 5.86°01'04"W., liISS ft.l to a point at its end:
N G9°OS'10"W., 46.86 ft. to a point at the beginning of a 06°3I' curve to the right; 207.SG ft. along the arc oC said curve to the right
subtended b}' a 13°32'01" central angle and 880.00 ft. radius (long chord: N.62°19'09"W., 207.38 ft.) to a point at its end; and
NS6°2732"W., 23.62 ft. to a point in the contman line between said l.3 and 270 acre tracts for the southwest corner of the herein
described tract;
i h[ENCE, with the said common line behveen 1.3 and 270 acre tracts N.4S°02'00"E., 10.74 tt. to the PL;1CE OP [3EGINNING
1 hereby certify that this field notes description and accompam'ing plat arc accurate
representations of the proper[}' shown and described hereon as detemtined b}' a survey made
on the ground under my direction and supervision, except no survey was made to reestablish
Patent Survey lines or corners; and that all property corners are as shown; no new survey aas
done on this date.
Dates Surveyed: March 4, 1998-January 22, 1999-
February 2, 1949
atedtlu ,0`hd 'ofM y,20 ~ ~P,~~tsrt
11 :•~
..LEG C. VO
Lee C. Voelkel ••••••••••••••••^^
I:eglstered Professional Land Surveyor No. 3909 r•~'v 3909
r'•, r.
7,~: _ESS~
SUF
Exhibit A-Page 1 of 3
~T"-s [•J7~~'=S4iG'76'SOu7;i~ ~~ ~NJ~$/h`~~~(t'~&i. PtLC . PHONE 830-25]-3313 • 2t2 CLAY STftL ET, KEaR VILLE TEXAS ]8028 I
FIELD NOTES DESCRIPTION FOR 0.05 ACRE OF LAND OUT OF
'fI-IE MCRAE ENERGY CORP. LAND ALONG SIIEPPARD REES
ROAD IN KERB COUNTY. TEXAS
Being all of a certain tract or parcel of land containing 0.05 acre, more or less, out of T.F. Ilollis Survey No. I43, Abstract No.
I S I in Kerr County, Texas; comprising 0.04 acre out of a certain 100.09 acre tract conveyed as Tract Two from Landmark Ranch,
Ltd. to McRae Energy Corp. by a General Warranty Deed executed the 18°i day of October, 2001 and recorded in Volume I I50 at
Page 332 of the Real Property Records of Kerr County, Texas and 0.01 acre out of a certain 1.3 tract conveyed from C. Marc
Sherron [o i,lcRae Energy Corp. by a Special Warranty Deed executed the 25°i day of October, 2001 and recorded in Volumc
1 I.0 at Page 35C, of the Real Property Records of KCIT Counn~. Texas: and heim_ more particularly described by mcles ;:nd
bounds as follows:
BEGINNING at a fence cornerpost for the east common corner of said Tract Two and 1.3 acre tract; which point bears,
approximately, 4980 ft. N.45°E. and 520 ft. S.4i°E. from the southwest corner ofsaid Survey No. 143;
l-HENCE, along a fence wilt the northeast line of said Tract "f~co S.So°13'9"E., 48 16 ft. to a !." iron stake set for the east
corner of the herein described tract;
'fh1ENCE, upon, over and across said Tract Two 5.84°04'51"R'.. 107?4 ft. to a fence anglepos[ in the north line of Tract Two for
the southwest comer of the herein described tract;
TI IEN'CE, along a fence with the said north line of Tract "fwo N.60°3:'00'T--., 32.90 ft. to a ';;" iron stake set for a reentrant corner
of the herein described tract and southerly comer of said 1.3 acre tract:
THENCE, with the south line of said 1.3 acre tract 5.89°58'09"1V., ~ 1.92 ft. to a ';;" iron stake set in the south ri,ht-of=wav line of
Sheppard Rees Road, a forty (40) ft. wide road easement conveyed Gom the State of Texas [o Kerr County by an Easement and
Right-of--Nay Deed executed the 25`h day of July, t955 and recorded in Volume 2 at Page 365 of [he Easement Records of Kerr
County, Texas for the notthwest corner of the herein described tract;
THENCE, upon, over and across said 1.3 acre tract with [he said south ri:ht-of-wav line of Sheppard Rees N 61°0T1 7 "E., ~3.~3
ti. to a '/" iron stake set in the northeast line of 1.3 acre tract for the north corner of the herein described tract;
THENCE-, with the said northeast line of 1.3 acre tract 5.71°SS'33"E., 13.7 fi. to the PLACE OF BEGINNING.
I hereby cenify that this Feld notes description and accompanying plat
^re accurate representations of the property shown and described
hereon as determined by a survey made on the ground under my
direction and supervision, except no survey was made [o reestablish
Paten[ Survey lines or corners; and that all property comers are as
shown; no new survev was done on [his date.
Dates Surve -ed: March 4, 1998 - Januar ~ v"', 4 9 - ~~°O
February 2, 1999 ; Q``
F
Dated this 30°i day of May, 3002 _ . VO
r' ; y~ 3909
~ ~'~FES St
v~~ ~o...
SUF
Lee C. Voelkel
Registered Professional Land Surveyor No. 3909
Exhibit A-Page 2 of 3
C:.rrj~~~7~ U'&'ksU~9P1~'L';.~W"'i "'/ e1~~~~.~~l~J, FLLC . VHONC a30-2`u~-3313 . 212 CLAY ETHHET hEFnVILLE. TExAS X8026
FIELD NOTES DESCRIPTION FOR OA4 ACRE OF LAND OUT O(
THE MCRAE ENERGY CORP. LAND ALONG SHEPPARD REES
ROAD IN KERR COUNTY, TEXAS
Beim all of a certain tract ur parcel of land containing O.U4 acre, more ur Icss, out ul l~.l~. I lullis Survey Nu. Ida, Abstract No I S I
'm Kcrr County, Texas; patt of a certain 1.3 acre tract conveyed t}om C. Marc Shcrrun to McRae Enerey Corp. by a Special
Wm'ranty Deed executed [he 3~'~' day of October, 2001 and recorded in Volwne I l50 nt Pa_'e 356 of the Real Property Records of
Kerr County, Texas: and beim_ more particularly described by metes and bounds as follows
BEGINNING at a fence cornerpost in the southeast line of a certain 270 acre tract conveyed from D.A. Rees. at ux, to Eu_ene
Wilke, et ux, by a Warranty Deed with Vendor's Lien executed the 26°i day of f,~larch, 1963 and recorded in Volume 1 14 at Page
577 of the Deed Records of Ikea County, Texas for the west comer of the herein described tract and 1.3 acre tract and northwest
corner oC a certain 91.53 acre tract conveyed as Tract One from Landmark Ranch, Ltd. to McRae Ener_y Corp. by a General
\\~arranty Deed executed the 1 S`h day of October, 2001 and recorded in Volume I li0 at Page 332 of the Real Property Records of
Kerr County, Texas; which point bears approximately-1702 tt. N.4.°E, from the southwest corner of said Survey No. 143.
fl IENCE, with the common line between said 1.3 and 270 acre tracts N.A4°59'00"E., 9.30 ft. to a point in the occupied south
ri<~ht-of-way line of Sheppard Rees Road, a fogy l40) f. wide road easement conveyed from the State of Texas to Kerr Counh~ by
an Easement and Right-of--Way Deed executed the 25'h day of July, 1955 and recorded in Volume 2 at Paee 36~ of the Casement
Records of Kerr County, Texas, for the north comer of the herein described tract;
TI-IENCE, upon, over and across said l3 acre tract with the said south right-of-way line of 40 ft. wide road easement
5.56°15'1 S"E., 31.10 ft. [o a point at the beginning of a 06° Id' curve to the left; and 106.13 ft. along the arc of said cun~e to the left
subtended by a 06°36'47" central angle and 920.00 ft. radius flung chord: S59°33'35"E., I Oo.l"' ft.l to a point in [he south line ut
1.3 acre tract for the east comer of the herein described tract,
THENCE, with the said south line of 1.3 acre tract 5.17°53'00" \1'., 13.43 R. to a lS" iron stake found fbr the south comer aC the
herein described tract, a southerly corner of 1.3 acre tract and northeast corner of said Tract One:
THENCE, with the common Line betveen said 1.3 acre tract and Tract One N.55°16'00"VV'., I-t3.S9 ft. :~, tltc ?L'+~C ~!i~
BEGINNING.
I hereby certify that this held notes description and
accompanying plat are accurate representations of the propem~
shown and described hereon as determined by a survey made
on the ground under my direction and supervision, except no
survey a~as made to reestablish Paten[ Survey lines or comers;
and that all property corners are as shown; no new sun'ey was
done on this date.
	~~ O F
DmesSurveyed:March4,1993-January23.1999-	~"t~:~'~E
Februa ° 1994
O' -~	~~'='~ `' YV
j
	,
cE C. VO'
Dated dtis 30°i day of May, 3002	'•° 3909
r
`~
~	~9''~°'esst
~Q
~	SUF
Lee C. Voelkel	
Registered Professional Land Surveyor No. 3909	
o°t LSD:A6;1:1:iL'SC?,.:~iti~:IJCu'Li~C6B~d~,auc aNOrve©ao~z5v-aara zizcrnvsrnerT kraavirre.reins vane
OWNER POLICY OF TITLE INSURANCE
SCHEDULE B
G.F. No. 2002490
Policy No. 175-188917
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by
reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters:
The following restrictive covenants of record itemized below (the Company must either insert specific recording data or
delete this exception):
Restrictions recorded in Volume 1150, Page 313, Real Property Records of Kerr County, Texas, but deleting any
covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion,
sex, handicap, familial status or national origin unless and only to the extent that said covenant (a) is exempt under
Chapter 42, Section 3607 of the United States Code or (b) relates to handicap but does not discrimittate against
handicapped persons.
2. Any discrepancies, conflicts, or shortages in area or boundazy lines, or any encroachments or protrusions, or any
overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spouse of any insured.
4. Any titles or rights asserted by anyone, including, but not limited [o, persons, the public, corporations, governments or
other entities,
a. to tidelands, or lands comprising [he shores or beds of navigable or perennial rivers and streams, lakes, bays,
gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or
c. to filled-in lands, or aztificial islands, or
d. to statutory water rights, including ripazian rights, or
e. to the azea extending from the line of mean law tide to the line of vegetation, or the right of access to that area or
easement along and across that area.
Standby fees, [axes and assessments by any taxing authority for the year 2002, and subsequent years; and subsequent taxes
and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or
assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13,
Texas Tax Code, or because of improvements not assessed for a previous tax year.
Commonwealth Land Title
Insurance Company
See Continuation Page
Continuation of Schedule B G.F. No. 2002490
6. The following matters and all terms of the doctunents creating or offering evidence of the matters (We must insert matters
or delete this exception.):
a. Visible and apparent easements on or across property herein described.
b. Rights of Parties in Possession.
c. Right of Way Easement to Texas Power & Light Company, dated October 2, 1928, recorded in Volume 49,
Page 385, Deed Records of Kerr County, Texas; said easement having been conveyed to L.C.R.A. in
instrument recorded in Volume 65, Page 13, Deed Records of Kerr County, Texas; said easement having
been assigned to City of Kerrville by instrument effective December 10, 1987, recorded in Volume 452,
Page 503, Real Property Records of Kerr County, Texas.
d. Right of Way Easement to Texas Power & Light Company, dated October 2, 1928, recorded in Volume 49,
Page 431, Deed Records of Kerr County, Texas; said easement having been conveyed to L.C.R.A. in
instrument recorded in Volume 65, Paged 13, Deed Records of Kerr County, Texas; said easement having
been assigned to City of Kerrville by instrument effective December 10, 1987, recorded in Volume 452,
Page 503, Real Property Records of Kerr County, Texas.
e. Easement to Texas Power & Light Company, dated Apri18, 1929, recorded in Volume 50, Page 329, Deed
Records of Kerr County, Texas; said easement having been conveyed to L.C.R.A. in instrument recorded m
Volume 65, Page 13, Deed Records of Kerr County, Texas; said easement having been assigned to City of
Kerrville by instrument effective December 10, 1987, recorded in Volume 452, Page 503, Real Property
Records of Kerr County, Texas.
f. Easement to Texas Power & Light Company, dated August 5, 1931, recorded in Volume 53, Page 503, Deed
Records of Kerr County, Texas; said easement having been conveyed to L.C.R.A. in instrument recorded in
Volume 65, Page 13, Deed Records of Kerr County, Texas; said easement having been assigned to City of
Kerrville by instrument effective December 10, 1987, recorded in Volume 452, Page 503, Real Property
Records of Kerr County, Texas.
g. Easement and Right of way to County of Kerr, dated July 25, 1955, recorded in Volume 2, Page 365,
Easement Records of Kerr County, Texas and protrusion of northern most part of Tract Two into the said
easement right of way.
h. Right of Way and Easement to Kerrville Telephone Company, dated August 12, 1968, recorded in Volume
5, Page 502, Easement Records of Kerr County, Texas.
i. Right of Way and Easement to Kerrville Telephone Company, dated November 4, 1970, recorded in
Volume 6, Page 276, Easement Records of Kerr County, Texas.
j. Right of Way and Easement to Central Texas Electric Cooperative, Inc., dated June 11, 1970, recorded in
Volume 6, Page 355, Easement Records of Kerr County, Texas.
k. Electric Substation Easement and Right of Way to L.C.R.A., dated May 6, 1994. recorded in Volume 747,
Page 200, Real Property Records of Kerr County, Texas.
Commonwealth Land Title
Insurance Company
Page 2 See Continuation Page
Continuation of Schedule B
G.F. No. 2002490
Electric Line Easement and Right of Way to L.C.R.A., dated May 6, 1994, recorded in Volume 747, Page
209, Real Property Records of Kerr County, Texas.
m. Electric Line Easement and Right of Way to Kerrville Public Utility Board, dated May 19, 1994, recorded
in Volume 747, Page 250, Real Property Records of Kerr County, Texas.
n. All oil, gas and other minerals in and under the property reserved in deed dated July 17, 1996, From Board
of Regents to the University of Texas System to Landmark Ranch, Ltd., recorded in Volume 860, Page 632,
Real Property Records of Kerr County, Texas.
o. Easement from Landmark Ranch, Ltd. to all owners of The Horizon Section One, dated March 31, 1997,
recorded in Volume 895, Page 632, Real Property Records of Kerr County, Texas.
p. Easement from Landmark Ranch, Ltd. to Kerrville Telephone Company, dated June 5, 1998, recorded in
Volume 958, Page 361, Real Property Records of Kerr County, Texas.
q. Easement from Landmark Ranch, Ltd. to Central Texas Electric Cooperative, Inc., dated September 25,
1998, recorded in Volume 973, Page 6, Real Property Records of Kerr County, Texas.
r. The property described in Schedule "A" of this policy shall not include any mobile home or other
manufactured housing unit located on the property, which said mobile home or other manufactured housing
unit is expressly excluded from the coverage of this policy.
s. Right of Way Easement to Central Texas Electric Cooperative, Inc., dated April 15, 1999, recorded in
Volume 1064, Page 773, Easement Records of Kerr County, Texas.
t. Easement Agreement by and between Landmark Ranches, Ltd. and McRae Energy Corporation dated
October 18, 2001, recorded in Volume 1150, Page 341, Real Property Records of Kerr County, Texas.
u. All oil, gas and other minerals in and under the property reserved in deed dated June 3, 2002, from McRae
Energy Corporation to Kerr County, Texas, recorded in Volume 1193, Page 513, Real Property Records of
Kerr County, Texas.
Commonwealth Land Title
Insurance Company
Countersigned
Kerrville Title Company
By
Authorized oun[ersignature
Page 3
CONDITIONS AND STIPULATIONS
(Continuetl)
7. DETERMINATION, ExTENT OF LIABILITY AND COINSURANCE.
This policy is a contract of indemnity against actual monetary loss or damage
sustained or incurred by the insured claimant who has suffered loss or damage by
reason of matters insuretl against by this policy and only to the extent herein
described.
(a)The liability of the Company under this policy shall not exceed the least of:
(i) the Amount o1 Insurance staletl In Schedule A;
(ii) The diNerence between the value of the insured estate or interest as
insured antl the value of the insured estate or interest subject to the defect, lien or
encumbrance Insured against by this policy at the date the insured claimant is required
to furnish to Company a proof of loss or damage in accordance with Section 5 of these
Conditions and Stipulations.
(b) In the event the Amount of insurance stated in Schetlule A at the Date of
Policy is less than 80 percent of the value of the insuretl estate or interest or the full
consideration paid for the land, whichever is less, or if subsequent to the Date of
Policy an improvement is erected on the land which increases the value of the insured
estate or interest by at least 20 percent over [he Amount of Insurance stated in
Schetlule A, then this Policy is subject to the following:
(i) where no subsequent improvement has been made, as to any partial loss,
the Company shall only pay the loss pro rata in the proportion that the amount of
insurance at Date of Policy bears to the total value of the insured estate or interest at
Date of Policy; or
(ii) where a subsequent improvement has been made, as to any partial loss,
the Company shall only pay the bss pro rata in the propomon that 120 percent of the
Amount of Insurance stered in Schedule A bears to the sum of the Amount of
Insurance stated in Schedule A and the amount expended for the improvement.
The provisions of this paragraph shall not apply to costs, attorneys fees
antl expenses for which the Company is liable untler this poLCy, and shall only apply to
'(hat portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of
Insurance staletl in Schedule A.
(cj The Company will pay only those costs, attorneys' fees antl expenses incurred
in accordance with Section 4 of these Conditions and Stipulations,
8. APPORTIONMENT.
If Ne land described in Schedule A consists of Roo or more parcels that are not used
as a single site, arW a loss is established affecting one or more of the parcels but not
all, the loss shall be computed and settled on a pro rata basis as if the amount of
insurance under this policy was divided pro rata as to the value on Date of Policy of
each separate parcel to the whole, exclusive o1 any improvements made subsequent
to Date of Policy, unless a liability or value has otherwise been agreetl upon as to each
parcel by the Company and the insuretl at the time of the issuance of this policy and
shown by an express statement or by an entlorsement attachetl to this policy.
9. LIMITATION OF LIABILRV.
(a) If the Company establishes the title, or removes the alle9etl tlefect, Ilen or
encumbrance, or cures the lack of a right of access to or from the land, all as insured,
or takes action in accordance with Section 3 or Section 6, in a reasonably diligent
manner by any method, inclutling litigation antl the completion of any appeals
therefrom, it shall have fully pertormed its obligations with respect to that matter and
shall not be liable for any loss or damage caused thereby.
(b) In the event of any 11[igation, Including Iltigation by the Company or with the
Company's consent, the Company shall have no liability for loss or tlamage until there
has been a final tletermination by a coon of competent jurisdiction, and disposition of
all appeals therefrom, adverse to the title as ~msured.
(c) The Company shall not be liable for loss or damage to any insured for
liability voluntarily assumed by the insured in settling any claim or suit without the prior
written consent of the Company.
10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY.
All payments untler this policy, except payments made for costs, attorneys' lees and
expenses, shall reduce the amount of the insurance pro lento.
11 LIABILITY NONCUMULATIVE.
It is expressly understood that the amount of insurance under this policy shall be
reduced by any amount the Company may pay under any policy insuring a modgage
to which exception is taken in Schedule B or to which the insuretl has agreed
assumed, or taken subject, or which is hereafter executetl by an insured and which is
a charge or lien on the estate or interest tlescribetl or referred to in Schedue A, and
the amount so paitl shall be deemed a payment under this policy to the Insured owner.
12. PAYMENT OF LOSS.
(a) No payment shall be matle without producing this policy for entlorsemeM
of the payment unless the policy has been lost or destroyed, in which case proof of
loss or tlestmction shall be furnished to the satisfaction of the Company.
(b) When liability antl the extent of foss or tlamage has been definitely fixed In
accordance with these Conditions and Stipulations, the loss or damage shall be
payable within 30 days thereafter.
13. SUBROGATION UPON PAYMENT OR SETTLEMENT.
(a) The Company's Right of Subrogation.
Whenever the Company shall have settletl and paid a claim untler this policy, all
right of subrogation shall vest in the Company unaffected by any act o} the insured
claimant.
The Company shall be subrogatetl to antl be entitled to all rights and remedies
that the insured claimant would have had against any person or property in respect to
the claim had this policy not been issued. If requested by the Company, the insured
claimant shall transfer to the Company alt rights and remedies against any person or
propeM necessary in order to penect this right of subrogation. The insured claimant
shall permit [he Company to sue, compromise or settle in the name of the insured
claimant antl to use the name of the Insured claimant In any transaction or litigation
involving these rights or remedies.
If a payment on account of a claim does not fully cover the loss of the insured
claimant, the Company shall be subrogated to these rights antl remedies in the
proportion which the Company's payment bears to the whole amount of the loss.
Texas Owner Policy T-1 (Rev. 10-1 -97)
Cover Page
Form 117&2
If loss should result from any act of the insured claiment, as stated above. that act
shall not voitl this policy, but the Company, in that event, shall be required to pay only
that part of any losses insured against by ihi; policy that shall exceed the amount, if
any, lost to Ne Company by reason of the Impairment by the insured claimant of the
Company's right of subrogation.
(b) The Company s Rights Against Non-insured Obligors,
The Company's right of subrogaton against non-insured obligors shall exist antl
shall include, without limitation, the rights of the insured to indemnities, guaranties,
other policies of insumnce or bonds, notwithstantling any terms or conditions
containetl in those instruments that provide for subrogation rights by reason of this
policy.
14. ARBRRATION.
"Unless prohibited by applicable law or unless this amitration section is deleted by
specific provision in Schedule a of this policy, either the Company of the Insured may
tlemand amttration pursuant to the Title Insurance Arbitration Rules or the American
Amitration Association. Arbitrable matters may include, but are not limited to, any
controversy or claim between the Company antl the Insured arising out of or relating to
this Policy, and service of the Company in connection with its issuance or the breach
of a policy provision or other obligation. All arbitrable matters when the Amount of
Insurance is $1 000,0(x1 or less SHALL BE arbitrated at the request of either Cha
Company or the Insured unless the insuretl is an individual person (as distinguished
from a corporation, trust, partnership, association or other legal entity). All arbitrable
matters when the Amount of Insurance is in excess of $1,WOp00 shall be arbitrated
only when agreed to by both the Company antl the Insured. Amitration pursuant to
this Policy and under the Rules in effect on the date the demand for arbitration is made
or, at the option of the Insured, the Rules in effect of the Date of Policy shall be
binding upon the parties. The award may include attorneys' fees only ii the laws of the
state in which the land is located permit a court to award attorneys tees to a prevailing
party. Judgment upon the award rentleced by the Arbitrator(s) may be enieretl in any
court having jurisdiction thereat.
The Law of the situs of the land shall apply to any amitration under the Title
Insurance Arbitration RWes.
A Copy of the Rules maybe obtained from the Company upon request."
15. LIABILITY LIMITED TO THIS POLfCV: POLICY ENTIRE CONTRACT.
(a) This policy together with all endorsements, if any, attachetl hereto by the
Company is the entire policy and contract between the insured and the Company. In
interpreting any provision of this policy, Ihls policy shall be construed as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, and
which arises out of the status of the title to the estate or interest covered hereby or by
any action asserting such claim, shall be restricted to this policy.
(c) No amendment of or endorsement to this policy can be made except by a
writing endorsed hereon or attached hereto signed by either the President, a Vice
President, the Secretary, an Assistant Secretary, or validating officer or authorized
signatory of the Company.
i6. SEVERABILITY.
In the event any provision of the policy is held invalid or unenforceable under
applicable law, the policy shall be deemed not to include that provision, and all other
provisions shall remain in full force and effect.
17. NOTICES, WHERE SENT.
All notices required to be given the Company and any statement in writing required to be
furnished the Company shall include the number of this policy and shall be addressed to
COMMONWEALTH LAND TITLE INSURANCE COMPANY, 101 Gateway Centre
Parkway, Gateway One, Richmond, Virginia 23235-5153.
COMPLAINT NOTICE.
Should any dispute arise about your premium or about a claim that
you have filed, contact the agent or write to the Company that issued
the policy. If the problem is not resolved, you also may write the Texas
Department of Insurance, P.O. Box 149091, Austin, TX 78714-9091, Fax
No. (512) 475-1771. This notice of complaint procedure is for
information only and does not become a part or wndition of this
policy.
FOR INFORMATION, OR
TO MAKE A COMPLAINT, CALL:
1-800-925-0965
PARR INFORMATION, O
PARR HACER UNA QUEJA, HABLE
1 -800-925-0965
ORIGINAL -Valid Only If Face Page, Schedules A and B Are Attached
Issued from the
office of:
r
ISSUING AGENT
KERRVILLE TITLE COMPANY
290 Thompson Drive
Kerrville, TX 78028
Phone: (830) 896-5811
REPRESENTING
Commonwealth
LanoArtwu wawa~v

TEXAS OWNER
POLICY OF
TITLE INSURANCE


ISSUEU B\'
COMMONWEALTH LAND TITLE INSURANCE COMPANY
Commonwealth
ALMDaVmil(:9tOM10.Vt
Title Insurance Since 1876
HoNe Omce:
101 Gateuiay Centre Parhu~ay, Ga[eway One
Richmond, Virginia 23235-5153
B 1178-2