15-01 Non-Drilling Oil & Gas Well Lease - Gibson & Assoc

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State: County: Optionor: Opfionee: OPTION AGREEMENT Ohio Cuyahoga The City of Lakewood Ronald A. Gibson & Associates, Inc. EXHIBIT i Optionor, named above, owns all of the oil and gas mineral interest in thc lands described below and referred to hereinafter as the "Lands", and Optionor owns all rights, title and interests in the existing Lakewood park #1 oil and gas well (hereinafter referred to as the "Well") located on the Lands. The Lands are situated in Lot No. of the City of Lakewood, Cuyahoga County, State of Ohio, and'bounded substantially as follows: On the .North by Lake Erie, on the South by Lake Avenue, on the West by St. Augustine Academy, and on the East by small tracts on the west side of Parkside Drive. Optionor desires to grant Optionee, named above, an option to: 1) test and workover the currenfly existing Lakewood Park #1 oil and gas well, and 2) to acquire a Non-Drilling Oil and Gas Lease covering Optionofs oil and gas mineral interest in the Lands. For and in consideration of One Dollar ($1.00) and Other Valuable Consideration in hand, the receipt and sufficiency of which Optionor hereby acknowledges, Optionor grants Optionee, its successors or assigns, for a term of one (1) year from the execution date of this option agreement as stated below (the "Option Period"), the exclusive right and option, but not the obligation, to: 1) Enter the Lakewood Park//1 oil and gas well and conduct such tests and workover efforts as necessary to determine whether commercial oil and gas production can be established from the Well; and 2) acquire a Non-Drilling Oil and Gas Lease on the lands with the identical terms and conditions as set forth in the Non-Drilling Oil and Gas Lease attached hereto (the "Option Lease"). During the Option Period, Optionee shall be responsible for ail expenses incurred by Opfionee with respect to testing and working over the well. During the Option Period, OpfiOnee shall assume all liability of damage to the surrounding surface property that may result from testing and working operations. Optionee will notify the Optionor with a written notice, via facsimile copy, 48 hours prior to the start of testing and workover procedures so as to allow the Optionor the oppommity to witness said procedures. In the course of testing and working over the well, Optionee may produce unknown volumes of oil, natural gas, and brine from the well. Whereas volumes of oil and brine, if produced, will be accumulated in temporary storage tanks near the wellhead, volumes of natural gas will be flared or vented to the atmosphere in a safe manner. Optionor does hereby grant to Optionee, all volumes of oil and gas recovered by Opfionee during the Option Period, however, Opfionee shall pay to Opfionor a One- Eighth (1/8~h) royalty for all oil produced and marketed from the premises during the Option Period. Optionor agrees not to sell the well and its associated equipment, or enter into any oil and gas lease or other agreements which would prevent Optionee from exercising this