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HomeMy WebLinkAboutAGENDA REPORT 2018 0620 CCSA REG ITEM 09HCITY OF MOORPARK, CALIFORNIA City Council Meeting of June 20, 2018 ACTION Approved staff recommendation. Adopted Reso No. 2018-3716, as amended BY M. Benson H. Consider a Resolution Approving Phase 2 of the Moorpark North -East Open Space Property Purchase Project, Located in the Vicinity of Moorpark College, Including a Budget Amendment for $1,615,720; a Purchase and Sale Agreement for 129.81 Acres of Open Space from Waste Management, Inc., a Surface Waiver Agreement with the California Resources Production Corporation, Inc. to Pre-identify Two Oil Drilling Islands on the Site, and Finding That These Actions Are Exempt from the Provisions of the California Environmental Quality Act . Staff Recommendation: Adopt Resolution No. 2018-___ to: 1) Find that the project is categorically exempt from CEQA, pursuant to Sections 15317 and 15325 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; 2) Approve a budget amendment to the Fiscal Year 2017/18 budget to expend $1,545,720 for land acquisition and $70,000 for a cquisition costs, for a total project budget of $3,145,720 to acquire approximately 255 acres in open space from the Endowment Fund; 3) Authorize the City Manager to execute a Purchase and Sale Agreement, and related documents, subject to final language ap proval by the City Manager and City Attorney, to acquire the 129.81 acres comprising the second phase of the Moorpark North-East Open Space Property Purchase Project, as described in the staff report, from Waste Management at a cost of $1,545,720; and 4) Authorize the City Manager to execute a Surface Waiver Agreement with the California Resources Production Corporation, and related documents, subject to final language approval by the City Manager and City Attorney, to pre-identify two oil drilling islands on the site. ROLL CALL VOTE REQUIRED Item: 9.H. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Brian Chong, Assistant to the City Manager DATE: 6/20/2018 Regular Meeting SUBJECT: Consider a Resolution Approving Phase 2 of the Moorpark North- East Open Space Property Purchase Project, Located in the Vicinity of Moorpark College, Including a Budget Amendment for $1,615,720; a Purchase and Sale Agreement for 129.81 Acres of Open Space from Waste Management, Inc., a Surface Waiver Agreement with the California Resources Production Corporation, Inc. to Pre-identify Two Oil Drilling Islands on the Site, and Finding That These Actions Are Exempt from the Provisions of the California Environmental Quality Act SUMMARY Waste Management currently owns approximately 255 acres of open space east of Moorpark College, within the Moorpark City limits. On October 18, 2017, the City Council directed staff to purchase 125 acres of the open space using grant funding from the County of Ventura (subsequently approved by the City Council on June 6, 2018) and to enter negotiations with Waste Management to purchase the approximately 130 acres of the remaining open space within the City. On December 6, 2017, the City and Waste Management entered into a Memorandum of Understanding that established a price of $12,000 per acre and provided for the donation of one acre at no cost to the City. The City has now completed environmental due diligence on the property, and staff is seeking City Council approval to acquire the remaining 129.81 acres, at an acquisition cost of $1,545,720, which includes the one acre dedication by Waste Management. Staff is also seeking appropriation of $70,000 to fund the additional acquisition costs associated with the project, such as escrow, legal, and civil engineering fees. Like the prior 125-acre purchase, the sales agreement consists of a Purchase and Sale Agreement with Waste Management and a Surface Waiver Agreement with the Item: 9.H. 672 Honorable City Council 6/20/2018 Regular Meeting Page 2 California Resources Production Corporation (CRC), which has existing oil drilling rights on the property. BACKGROUND Waste Management owns approximately 255 acres of open space within the City limits, located east of Moorpark College. The City’s Moorpark North-East Open Space Property Purchase Project consists of acquiring this property to protect it as permanent open space and provide passive recreational uses, such as hiking trails, on the property and to enable a connection to the adjacent trail system operated by the Rancho Simi Recreation and Park District. On June 6, 2018, the City Council gave its final approval to purchase 125 acres of the open space at a cost of $1,500,000, using grant funding provided to the City by the County of Ventura. The City is currently proceeding through the escrow process on that property at this time. Above: Previously-Approved 125-Acre Purchase Area (bordered in yellow) On October 18, 2017, the City Council directed staff to enter negotiations with Waste Management on its remaining property within the City limits. On December 6, 2017, the City and Waste Management entered into a Memorandum of Understanding that established a price of $12,000 per acre (the same price paid for the 125-acre purchase) and provided for the donation of one acre at no cost to the City. 673 Honorable City Council 6/20/2018 Regular Meeting Page 3 To proceed most efficiently with the comprehensive project, staff completed the surveying and environmental studies on the full 255 acres of Waste Management’s holdings at the time the initial 125-acre purchase was being pursued. The Purchase and Sale Agreement for the remaining acquisition is also based on the Purchase and Sale Agreement for the 125-acre purchase as well. The location of the currently proposed 129.81-acre acquisition is shown below: Below: Currently Proposed 129.81-Acre Purchase Area (bordered in yellow) DISCUSSION The attached Purchase and Sale Agreement (Attachment 2) contains the following: • Escrow Instructions: The Agreement includes escrow instructions for the real estate transaction, including a purchase price of $1,545,720. • Reservation of Mineral Rights by Waste Management: Waste Management reserves its ownership of mineral rights on the property, including the existing oilfield lease over the property. • Oilfield Operator Maintains Environmental Liability for Oilfield Activities: The California Resources Production Corporation currently has rights to operate 674 Honorable City Council 6/20/2018 Regular Meeting Page 4 an oilfield on the site, which contains eight active oil wells and two reserved future drill sites. CRC will maintain environmental liability for oilfield-related environmental damage. • Limitation on Construction of Apparatus Visible from 118 Freeway: Permanent drilling apparatus in connection with mineral rights extraction shall not be visible from the 118 Freeway. During construction of such drilling apparatus, however, construction equipment (such as a crane) may be temporarily visible from the 118 Freeway during construction. • Future Use Restrictions on Property: Waste Management wants to maintain a buffer distance from such development and its Simi Valley Landfill and Recycling Center. As such, residential uses and “sensitive receptors,” as defined by the Ventura County Air Quality Assessment Guidelines (such as schools, hospitals, and day care centers), are prohibited. A Visitor’s Center, however, is specifically allowed on the property, should the City desire to construct one in the future. Fracking At the June 6, 2018 City Council meeting regarding the Purchase and Sale Agreement for the 125-acre purchase area, the City Council directed staff to ask CRC if they would voluntarily accept a prohibition on fracking on the full purchase area that the City is in the process of acquiring, while recognizing that the City does not have regulatory authority to compel such a prohibition. While CRC declined to insert such a prohibition into the Surface Waiver Agreement, CRC staff did advise that they have no intent of ever fracking on the site, that the local geology is not conducive to fracking, and that there would be significant state regulatory hurdles for them to ever engage in fracking on the site. Future Oilfield Activity On April 27, 1948, the County of Ventura issued Special Use Permit (SUP) No. 23 to the Union Oil Company to operate an oilfield over the subject site, as well as adjacent areas located in portions of the City of Simi Valley and unincorporated Ventura County. Special Use Permit No. 23 will expire on October 29, 2033. The SUP authorizes CRC, the successor to the Union Oil Company, to undertake oil and gas exploration and extraction anywhere within the 255 acres comprising the Moorpark North-East Open Space Property Purchase Project, with the SUP serving as the discretionary land use decision for the oilfield. While land use authority for the site transferred from the County to the City when the City incorporated, the City can only require ministerial permits (such as building permits) from the City’s Community Development Department for new wells during the term of SUP No. 23. Oilfield operations beyond that date would require City approval of a modification to that permit, or approval of a new Conditional Use Permit. Both are quasi-judicial actions by the City Council. It should be noted that the 675 Honorable City Council 6/20/2018 Regular Meeting Page 5 County’s conservation easement would also not apply to CRC’s current SUP No. 23 rights, because CRC’s rights from the County SUP predate the conservation easement. Because of the potential conflict between CRC’s rights to construct oilfield apparatus anywhere on the site and the City’s open space preservation and recreational trail system goals, staff and representatives from CRC met to discuss how the two uses can develop cooperatively. The discussions were very productive, as neither the City nor CRC wants a recreational trail and an oilfield drill site to be located next to each other. The result of the discussions is a “Surface Waiver Agreement” between the City and the CRC, which is provided as Exhibit D to the Purchase and Sale Agreement. Under the Surface Waiver Agreement, CRC agrees to reduce its rights to build new drill islands from the entirety of the 255 acres within the City to just the current sites and two future pre-set drill islands within the current purchase area (shown below). None of the sites are visible from the 118 Freeway. With certainty as to where future drill sites may be located, surety exists that the City can then design and construct a recreational trail system across the property without conflict that a drill site will be built right next to a trail. Above: Current Drill Sites (yellow), Future Three-Acre Drill Sites (Pads A and B), and Access and Utility Easements (Blue) 676 Honorable City Council 6/20/2018 Regular Meeting Page 6 The Surface Waiver Agreement also requires an access and utility easement to be granted to CRC to its current and future drill sites. The Agreement also contains a clause allowing the City and mineral rights owner (and, by extension, CRC) to relocate the existing or future access and utility easements by mutual consent. Thus, there is a mechanism to relocate current dirt roads on the site, if needed to construct the City’s desired trail system. Finally, as part of the Surface Waiver Agreement, CRC will maintain liability for any environmental damage caused by its oilfield activities. Environmental Due Diligence The City has completed civil engineering work and multiple environmental studies on the entirety of the 255 acres of Waste Management-owned open space within the City limits, including the area currently being considered for purchase. A Phase I Environmental Site Assessment, a Geophysical Survey to locate oilfield-related infrastructure, and a Phase II Environmental Site Assessment were completed by the City to comply with the All Appropriate Inquiries (AAI) standard under the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and the state’s Carpenter-Presley-Tanner Hazardous Substance Account Act. The environmental studies found levels of contamination expected from historical oilfield activities stemming from eight active oil wells and related infrastructure, including inactive wells, pipelines, and access roads that were historically sprayed with oil for dust suppression. The City’s environmental consultant concluded that the current conditions at the site, combined with the City’s planned future use, do not pose a threat to the public. Trails would not be built adjacent to existing and future oil wells, so there would not be a threat posed from that interface. The contaminated soil caused by the old roads is essentially encapsulated beneath pavement. If a trail is constructed over an area of degraded pavement, repaving those areas would prevent the public from coming into contact with contaminated soil. As mentioned above, CRC will retain responsibility for the oilfield-related environmental contamination and remediation of the site pursuant to the proposed Surface Waiver Agreement (Attachment 4) between the City and CRC. Execution of the Agreement is required as a condition of the Purchase and Sale Agreement. CEQA The Community Development Director has reviewed the recommended City Council actions proposed in this report and determined that they are categorically exempt from the provisions of the California Environmental Quality Act (CEQA). The Director has concluded that approval of the property acquisition for open space purchases, including approval of the Purchase and Sale Agreement and the Surface Waiver Agreement, is exempt from CEQA pursuant to Section 15317 of the CEQA Guidelines, which 677 Honorable City Council 6/20/2018 Regular Meeting Page 7 specifically exempts the acceptance of fee interests or easements in land in order to maintain the open space character of the area. The Director has further concluded that the proposed project is also exempt from CEQA pursuant to Section 15325, which exempts the acquisition of land to preserve open space and specifically includes the acquisition of land for park purposes. This conclusion is consistent with the City Council’s past finding that the prior 125-acre acquisition was exempt from CEQA. Furthermore there is no substantial evidence that the recommended City Council actions will result in significant effects on the environment due to cumulative effects, unusual circumstances, adverse effects on scenic resources within a state scenic highway, or historic resources, and the site is not on any of any list of hazardous waste sites compiled pursuant to Section 65962.5 of the Government Code. Accordingly, no further environmental documentation is needed. Ongoing Maintenance Based on the maintenance costs incurred by the City for other open space holdings, staff estimates ongoing annual maintenance costs of $11,000 per year for this property to complete brush clearance as required by the Fire Code, which would be performed by the City’s weed abatement contractor. When a trail system or other improvements are developed, annual maintenance costs will increase accordingly. Staff will incorporate funding for ongoing maintenance during the City’s Mid-Year Budget process, with a proration of the $11,000 annual costs, dependent on when the City completes acquisition of the property. Funding Source The City has received, among other things, $3,717,026 in environmental mitigation fees from Tract Map No. 5463, which is known as “The Masters” neighborhood being built by Toll Brothers. According to the project’s Development Agreement, these funds are to be used by the City “for open space preservation purposes.” Staff recommends that these funds, currently in the City’s Endowment Fund, be used to complete the currently- proposed acquisition. The attached Resolution (Attachment 1) would allocate these funds. FISCAL IMPACT Approval of the open space acquisition will cost $1,545,720, to be taken from the Tract Map No. 5463 environmental mitigation fees that must be used only for open space preservation purposes. An additional $70,000 appropriation is also requested for acquisition costs, such as escrow costs and legal fees. Ongoing annual maintenance costs of an estimated $11,000 per year will be added to the mid-year Budget, based on the actual acquisition date. 678 Honorable City Council 6/20/2018 Regular Meeting Page 8 STAFF RECOMMENDATION ROLL CALL VOTE Adopt Resolution No. 2018-___ to: 1. Find that the project is categorically exempt from CEQA, pursuant to Sections 15317 and 15325 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3; and 2. Approve a budget amendment to the Fiscal Year 2017/18 budget to expend $1,545,720 for land acquisition and $70,000 for acquisition costs, for a total project budget of $3,145,720 to acquire approximately 255 acres in open space from the Endowment Fund; 3. Authorize the City Manager to execute a Purchase and Sale Agreement, and related documents, subject to final language approval by the City Manager and City Attorney, to acquire the 129.81 acres comprising the second phase of the Moorpark North-East Open Space Property Purchase Project, as described in the staff report, from Waste Management at a cost of $1,545,720; and 4. Authorize the City Manager to execute a Surface Waiver Agreement with the California Resources Production Corporation, and related documents, subject to final language approval by the City Manager and City Attorney, to pre-identify two oil drilling islands on the site. Attachment 1 – Resolution Attachment 2 – Proposed Purchase and Sale Agreement Attachment 3 – Proposed Surface Waiver Agreement with California Resources Production Corporation 679 ATTACHMENT 1 RESOLUTION NO. 2018-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING PHASE 2 OF THE MOORPARK NORTH-EAST OPEN SPACE PROPERTY PURCHASE PROJECT AND AMENDING THE FISCAL YEAR 2017/18 BUDGET BY INCREASING EXDPENDITURES BY $1,615,720 WHEREAS, on October 18, 2017, the City Council approved the expenditure of the $1,500,000 to purchase 125 acres of open space, located east of Moorpark College and immediately north of the 118 Freeway, from Waste Management (Phase 1 of the Moorpark North-East Open Space Property Purchase Project) and directed staff to negotiate with Waste Management to acquire an additional 129.81 acres of open space (Phase 2 of the Moorpark North-East Open Space Property Purchase Project); and WHEREAS, on December 6, 2017, the City and Waste Management entered into a Memorandum of Understanding establishing a purchase price of $12,000 per acre and providing for the donation of one acre of open space to the City at no cost; and WHEREAS, the City has completed its environmental due diligence and developed a Purchase and Sale Agreement with Waste Management; and WHEREAS, the California Resources Production Corporation holds a current Special Use Permit (SUP No. 23) from the County of Ventura to operate an oil field anywhere on the 129.81-acre site described above; and WHEREAS, the City Council desires to approve the Purchase and Sale Agreement and complete the acquisition of the 129.81 acres of open space described above; and WHEREAS, the City Council and California Resources Production Corporation desire to identify two specific sites on the property for future drilling infrastructure, while ensuring the rest of its area will not be eligible for future drilling infrastructure; and WHEREAS the City Council and California Resources Production Corporation have developed a Surface Waiver Agreement to memorialize their desire; and WHEREAS, the Community Development Director has reviewed these proposed City Council actions and determined that they are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) in that the proposed approvals of the Purchase and Sale Agreement and the Surface Waiver Agreement are exempt from CEQA pursuant to Section 15317 of the CEQA Guidelines (Class 17 Categorical Exemption), which specifically exempts the acceptance of fee interests or easements in land in order to maintain the open space character of the area. The Director has further concluded that the proposed project is also exempt from CEQA pursuant to Section 15325 of the CEQA Guidelines (Class 25 Categorical Exemption), which exempts the acquisition of land to preserve open space and specifically includes 680 Resolution No. 2018-____ Page 2 the acquisition of land for park purposes. This conclusion is consistent with the City Council’s past finding that the Moorpark North-East Open Space Property Purchase Project is exempt from CEQA under the same Sections. Furthermore there is no substantial evidence that the proposed City Council actions will result in significant effects on the environment due to cumulative effects, unusual circumstances, adverse effects on scenic resources within a state scenic highway, or historic resources, and the site is not on any of any list of hazardous waste sites compiled pursuant to Section 65962.5 of the Government Code; and WHEREAS, on June 21, 2017, the City Council adopted the Operating and Capital Improvement Budget for Fiscal Year 2017/18, including funding for the Moorpark North-East Open Space Property Purchase Project; and WHEREAS, on October 18, 2017, the City Council adopted Resolution No. 2017- 3636 to provide an additional $175,000 in funding for the Moorpark North-East Open Space Property Purchase Project to fund the acquisition costs associated with Phase 1 of the Project; and WHEREAS, a staff report has been presented to the City Council discussing the need for a budget amendment to provide additional funding for Phase 2 of the Moorpark North-East Open Space Property Purchase Project; and WHEREAS, Exhibit “A” hereof describes said budget amendment and its resultant impact to the project budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. ENVIRONMENTAL DETERMINATION: The City Council, based on its own independent analysis and judgment, concurs with the Community Development Director’s determination that the proposed approvals of the Purchase and Sale Agreement and the Surface Waiver Agreement are exempt from CEQA pursuant to Section 15317 of the CEQA Guidelines (Class 17 Categorical Exemption), which specifically exempts the acceptance of fee interests or easements in land in order to maintain the open space character of the area, and that the proposed project is also exempt from CEQA pursuant to Section 15325 of the CEQA Guidelines (Class 25 Categorical Exemption), which exempts the acquisition of land to preserve open space and specifically includes the acquisition of land for park purposes. This conclusion is consistent with the City Council’s past finding that the Moorpark North-East Open Space Property Purchase Project is exempt from CEQA under the same Sections. Furthermore there is no substantial evidence that the proposed City Council actions will result in significant effects on the environment due to cumulative effects, unusual circumstances, adverse effects on scenic resources within a state scenic highway, or historic resources, and the site is not on any of any list of hazardous waste sites compiled pursuant to Section 65962.5 of the Government Code. Accordingly, no further environmental documentation is needed. 681 Resolution No. 2018-____ Page 3 SECTION 2. A Fiscal Year 2017/18 budget amendment to appropriate an additional $1,615,720 to the Moorpark North-east Open Space Property Purchase Project, as more particularly described in Exhibit “A,” attached hereto, is hereby approved. SECTION 3. The City Council hereby authorizes the City Manager to execute a Purchase and Sale Agreement, and related documents, subject to final language approval by the City Manager and City Attorney, to acquire the 129.81 acres comprising part of the Moorpark North-East Open Space Property Purchase Project, as described in the staff report, from Waste Management at a cost of $1,615,720. SECTION 4. The City Council hereby authorizes the City Manager to execute a Surface Waiver Agreement with the California Resources Production Corporation, and related documents, subject to final language approval by the City Manager and City Attorney, to pre-identify two oil drilling islands on the site. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 20th day of June, 2018. __________________________________ Janice S. Parvin, Mayor ATTEST: ___________________________________ Maureen Benson, City Clerk 682 Resolution No. 2018-____ Page 4 EXHBIT A BUDGET AMENDMENT FOR ENDOWMENT FUND CAPITAL IMPROVEMENTS MOORPARK NORTH-EAST OPEN SPACE PROPERTY PURCHASE FUND BALANCE ALLOCATION: Fund title Fund-Account Number Amount Endowment Fund 2018-33990 $ 1,615,720.00 Total $ 1,615,720.00 EXPENDITURE APPROPRIATION: Account Number Current Budget Revision Amended Budget 2018.173.L0074.55100 $ 1,500,000.00 $ 1,545,720.00 $ 3,045,720.00 2018.173.L0074.51000 $ 145,000.00 $ 20,000.00 $ 20,000.00 2018.173.L0074.51040 $ $30,000.00 $ 50,000.00 $ 80,000.00 Total $ 1,675,000.00 $ 1,615,720.00 $ 3,145,720.00 683 1 AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (this “Agreement”) dated as of ______________, 2018 by and between Waste Management of California, Inc., a California corporation (“Seller”) and the City of Moorpark, a California municipal corporation (“Buyer” or “City”). RECITALS A. Seller is the owner of two parcels of unimproved real property consisting of approximately 129 acres (“Parcel 1”) and 1 acre (Parcel 2”) respectively located in the City of Moorpark, Ventura County, California, and more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”). B. The Property is part of a regional wildlife corridor that connects the Sierra Madre Mountains. The Property is zoned Open Space 40-acre Zone (OS-40ac) and has a General Plan Designation of Open Space 2. The City desires to purchase from Seller, and Seller desires to sell the Property to the City for a public use, namely open space purposes and all uses necessary or convenient thereto. The purchase of the Property by the City will further many of the goals of the Open Space, Conservation, and Recreation Element of the City’s General Plan. It will preserve and enhance the aesthetic and visual qualities of the City with scenic topographic features that promote the quality of life that the residents of the City pursue. It will also conserve, preserve, and enhance the quality of biological and physical environments; maintain and enhance open space and designated non-growth areas for conservation purposes; and maintain open space lands that are well suited to their intended uses, and that will result in the most efficient use of the land for the convenience, health, safety, and pleasure of the City and vicinity. C. The City will purchase the Property from Seller, and Seller will sell the Property to the City, subject to the terms and conditions set forth in this Agreement. Now, therefore, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as follows: TERMS AND CONDITIONS 1. Certain Definitions. 1.1 “Approval Date” means the last day of the Due Diligence Period. 1.2 Business Day” or “business day” shall mean any day other than Saturday, Sunday or a day on which banks in California are permitted or required to close for business. 1.3 “Buyer Material Default” means the failure of the Closing to occur by reason of (i) Buyer’s failure to comply with its material obligations under this Agreement, (ii) failure of Buyer’s ATTACHMENT 2 684 2 representations and warranties to be true at the Closing; and (iii) the impairment of title as a result of an action (or lack thereof) by Buyer. 1.4 “Cash” shall mean immediately available U.S. funds transferred by wire transfer. 1.5 “Closing” and “Close of Escrow” are terms used interchangeably in this Agreement. The Closing or the Close of Escrow shall be deemed to have occurred when the actions provided for in Section 7, below, have all occurred. The Closing/Close of Escrow shall occur on or before the Closing Deadlines, time being of the essence. 1.6 “Closing Date” means the date on which the Closing/Close of Escrow occurs. 1.7 “Closing Deadlines” means the last date on which the Closing must occur. The Closing Deadline with respect to the Property is that date that is one hundred twenty (120) days from the Effective Date, time being of the essence; provided, however, that if, on or before the Approval Date, Buyer has approved (or is deemed to have approved) the Permitted Exceptions to Title pursuant to Section 10, waived any conditions to Closing pursuant to Sections 11 or 12, and deposited the Additional Deposit into Escrow, Buyer may extend the Closing Deadline for up to an additional sixty (60) days. 1.8 “Deposit” means and includes the “Initial Deposit” of $50,000 and the “Additional Deposit” of $50,000, both made in Cash, together with interest earned, if any, while held by Escrow Holder. 1.9 “Due Diligence Period” means the period starting on the Effective Date and ending at 5:00 p.m. local time on the 90th day after the Effective Date, time being of the essence. 1.10 “Effective Date” is defined in Section 2. 1.11 “Effective Date Notice” is defined in Section 2. 1.12 “Escrow” is defined in Section 5. 1.13 “Escrow Holder” means Lawyers Title Company. 1.14 “Landfill Property” is defined as the 130-acre parcel comprising the “Property” and is described more particularly at Exhibit “B” hereto. 1.15 “Property” is defined in Recital A. 1.16 “Purchase Price” means One Million Five Hundred Forty-Five Thousand Seven Hundred Twenty Dollars ($1,545,720). 1.17 “Purchase Proceeds” is defined in Section 6.2(a). 1.18 “Seller Material Default” means the failure of the Closing to occur by reason of (i) Seller’s failure to comply with any of its material obligations under this Agreement; (ii) the failure of any of Seller’s representations and warranties to be true at the Closing; (iii) material impairment of title resulting from an action taken by Seller after the Effective Date and/or after Buyer has approved 685 3 the Permitted Exceptions to Title, or (iv) a lis pendens being recorded against the Property by a person allegedly claiming through Seller (but not under Seller’s control). 1.19 “Title Company” means Lawyers Title Company. 1.20 “Title Policy” means an ALTA standard coverage owner’s title insurance policy for the full amount of the portion of the Purchase Price applicable to the portion of the Property then Closing, issued by Title Company showing title vested in Buyer, subject only to current taxes and the Permitted Exceptions. 2. Effective Date. The term “Effective Date” shall mean the date on which all of the following have occurred: (i) this Agreement has been executed by both Seller and Buyer, (ii) Buyer has delivered the Initial Deposit to Escrow Holder, and (iii) a copy of this fully-executed Agreement has been delivered to Escrow Holder. Within one business day from the completion of the foregoing, the parties shall acknowledge the Effective Date in writing to each other and the Escrow Holder (the “Effective Date Notice”). 3. Purchase and Sale. Subject to and on the terms and conditions set forth in this Agreement, Seller agrees to sell the Property to Buyer and Buyer agrees to purchase the Property for the Purchase Price, payable in the amount of One Million Five Hundred Forty-Five Thousand Seven Hundred Twenty Dollars ($1,545,720) on Closing. Possession of the Property shall be delivered to Buyer on the Closing. 4. The Deposits and Disposition of the Deposits. Buyer shall deliver the Initial Deposit to Escrow Holder concurrently with the delivery of a copy of the fully-executed Agreement to the Escrow Holder. 4.1 If Buyer terminates (or is deemed to have terminated) this Agreement on or before the Approval Date, Escrow Holder shall return the Initial Deposit to Buyer upon receipt of escrow cancellation instructions to that effect directed to Escrow Holder signed by Buyer. 4.2 If Buyer has not, on or before the Approval Date, timely terminated (or be deemed to have terminated) this Agreement, and Seller shall not be in default, Escrow Holder is authorized and instructed to disburse the Initial Deposit to Seller one (1) business day following Buyer’s delivery of the Additional Deposit to Escrow Holder. This disbursement of the Initial Deposit shall be made without further instructions from Buyer or Seller. Buyer and Seller jointly and severally release Escrow Holder from any and all liability and/or claims of any kind or nature whatever arising from its distribution of the Initial Deposit to Seller under the provisions of this Section 4.2. 4.3 If Buyer has not, on or before the Approval Date, timely terminated this Agreement, and Seller is not in default, Buyer shall deliver the Additional Deposit to Escrow Holder within five (5) business days following the Approval Date. Failure to timely deliver the Additional Deposit on or before the date which is five (5) business days following the Approval Date shall not constitute a default under this Agreement but rather shall be deemed an election by Buyer to terminate this Agreement, in which case the Initial Deposit shall be returned to Buyer in accordance with Section 4.1, above all without liability or obligation thereafter to Seller and/or the Escrow Holder, provided that the cancellation escrow instructions required by Section 4.1 are signed by Buyer and delivered to Escrow Holder within seven (7) business days of the Approval Date. 686 4 4.4 The Deposit shall be applied to the Purchase Price at the Closing. 4.5 Escrow Holder shall place the Initial Deposit and the Additional Deposit in an interest bearing account. All interest earned on each component of the Deposit shall be paid by Escrow Holder to the party receiving either the Initial Deposit or Additional Deposit, respectively, pursuant to the provisions of this Agreement 5. Escrow. 5.1 Opening; Joint Instructions. The sale of the Property shall be completed through an escrow (the “Escrow”) at the office of Escrow Holder. This Agreement shall constitute joint escrow instructions to the Escrow Holder in connection with the Escrow. The Escrow shall be deemed to be “opened” on the Effective Date. 5.2 General and Additional Instructions. Buyer and Seller hereby agree to execute such General and Additional Instructions not inconsistent with this Agreement as may be reasonably required by Escrow Holder and to carry forward the terms and provisions of this Agreement. In the event of any conflict between the provisions of said General and Additional Instructions and this Agreement, the provisions of this Agreement shall prevail. The execution of such General and Additional Instructions shall not be a pre-condition to the enforceability of this Agreement. Notwithstanding the other provisions of this Agreement, Escrow Holder is authorized to act based on said instructions executed by Buyer and Seller transmitted to Escrow Holder by electronic mail or facsimile. 6. Deliveries to Escrow Holder. 6.1 Deliveries by Seller. Provided a Buyer Material Default is not then existing after any notice and opportunity to cure required to be given to Buyer has been provided, Seller shall deliver to Escrow Holder, prior to the Closing Date, the following: (a) a grant deed duly executed and acknowledged by Seller and in recordable form, conveying the Property which is Closing in the form attached hereto as Exhibit B (the “Grant Deed”); Buyer specifically acknowledges and agrees that Seller shall retain the following mineral rights: (i) mineral rights consistent with the exploitation of mineral resources on the Property of every kind and character now known to exist or hereafter discovered within or underlying the Property below the top 500 feet thereof, together with the right to develop and/or extract the same without, however, the right to enter, drill, dig, or mine through the top 500 feet of said Property or interfere with Buyer’s use of the Property, and (ii) the rights granted by Seller to California Resources Production Corporation, as agent of and operator for its affiliate California Resources Petroleum Corporation (previously registered as Vintage Production California, LLC) pursuant to that certain Oil, Gas and Mineral Lease dated July 15, 2014, a redacted copy of which is attached hereto as Exhibit C (the “OG&M Lease”). Seller expressly acknowledges and agrees that Seller and its successors and assigns shall not construct any permanent drilling apparatus in connection with Seller’s reservation of mineral rights on the Property or use of the Property for oil field and related purposes that is visible from the 118 Freeway. Buyer acknowledges that this Agreement shall not transfer the OG&M Lease to Buyer, and that Seller shall retain all rights under the OG&M Lease (including, but not limited to the right to receive any rents, royalties or other payments); 687 5 (b)copies of any material agreements relating to the Property, including but not limited to any leases or licenses; (c)a Certificate of Non-Foreign Status in form reasonably required by Escrow Holder, duly executed by Seller together with a properly executed California Form 590RE or other evidence sufficient to establish that Seller is not required to withhold any portion of the Purchase Price pursuant to Sections 18805 and 26131 of the California Revenue and Taxation Code (the “Certificates”); and (d)such lien affidavits, owner indemnity agreement and corporate resolutions relating to the Property and Seller as are reasonably required by Title Company in connection with this transaction. 6.2 Deliveries by Buyer. Provided Seller has made the deliveries set forth above, Buyer shall deliver or cause to be delivered to Escrow Holder prior to the Closing Date, the following: (a)in Cash, the portion of the Purchase Price applicable to that portion of the Property which is closing, less the applicable Deposit, and less any net proration credit in favor of Buyer or plus any net proration debit charged to Buyer, such amount being hereafter referred to as the “Purchase Proceeds” and all costs and expenses to be paid by Buyer under this Agreement; and (b)such municipal resolutions relating to Buyer as are reasonably required by Title Company in connection with this transaction. 6.3 Deliveries by Buyer and Seller. Buyer and Seller shall each deposit or cause to be deposited such other instruments consistent with this Agreement as are reasonably required by Escrow Holder or otherwise required to close Escrow. In addition, Buyer and Seller hereby designate the Escrow Holder as the “Reporting Person” for the transaction pursuant to Section 6045(e) of the Internal Revenue Code. 7.Actions at Closing. 7.1 At the Closing, the Escrow Holder shall do the following: (a)cause the Grant Deed to be recorded in the Office of the Recorder of Ventura County, California; (b)cause the Surface Waiver Agreement to be recorded in the Office of the Recorder of Ventura County, California; (c)cause the Certificates to be delivered to Buyer; (d)wire transfer to Seller the Purchase Proceeds, less costs and expenses to be paid by Seller under this Agreement, in accordance with the wire transfer instructions that Seller will provide to Escrow Holder during Escrow; (e)if Escrow Holder continues to hold funds, after paying all costs and fees allocated to Buyer under this Agreement and paying the Purchase Proceeds to Seller, deliver the said remaining funds to Buyer; 688 6 (f) send completed IRS Form 1099 to the Internal Revenue Service; and (g) deliver to Buyer the original Title Policy. 8. Costs and Expenses. 8.1 Seller. Seller shall pay the cost of: (i) all documentary transfer taxes and recording costs and fees attributable to the conveyance to Buyer and recordation of the Grant Deed; (ii) 50% of all escrow fees and costs charged by Escrow Holder; and (iii) the premium for the Title Policy. 8.2 Buyer. Buyer shall pay: (i) one-half of all escrow fees and costs charged by Escrow Holder; and (ii) if Buyer so elects, the additional premium over and above the premium for the Title Policy payable by Seller to obtain “extended coverage” and such other endorsements and/or title coverage required by Buyer. 9. Prorations. 9.1 Taxes and Assessments. All non-delinquent real estate taxes and current installments of assessments affecting the Property shall be prorated between Seller and Buyer as of the Close of Escrow based on the final tax bill for the current year, or if not yet issued based on the assessed value of the Property as determined by the assessor in its notice of assessed valuation for the current year, if available, and if not available, on 102% of the assessed value of the Property reflected in the tax bill for the prior tax year. All delinquent taxes and assessments, if any, affecting the Property shall be paid at the Close of Escrow from funds accruing to Seller. Any refunds of real estate taxes and assessments attributable to the period prior to the Close of Escrow shall be paid to Seller whether such receipts occur before or after said Close of Escrow. Seller shall be responsible for the payment of all delinquent real estate taxes and any supplemental taxes based on events occurring prior to the Close of Escrow and Buyer shall be responsible for the payment of supplemental taxes based on this transaction and events occurring after the Close of Escrow. 9.2 Method of Proration. All prorations shall be made as of the Closing Date based on a three hundred sixty-five (365) day year or thirty (30) day month, as applicable. 10. Review of Title; Permitted Exceptions; Title. 10.1 Review of Title. Within five (5) days from the Effective Date, Seller shall obtain from Title Company, at its cost, and deliver to Buyer a preliminary title report for the Property, including a copy of all documents of record that appear as exceptions (the “Preliminary Report”). The Preliminary Report shall include all matters affecting title to the Property. Buyer shall have fifteen (15) business days following receipt of such report and documents within which to disapprove title exceptions by written notice to Seller. Failure to give written notice of disapproval to Seller of some or all of the exceptions shall be deemed to be approval of all exceptions, except for monetary liens, including, but not limited to, current taxes. If Buyer disapproves any exceptions, Seller shall have 10 calendar days within which to agree in writing to remove the exception(s) by the Close of Escrow. Seller’s failure to give written agreement to Buyer regarding Seller’s agreement to remove the exceptions(s) disapproved by Buyer shall be deemed to be a refusal, except that Seller shall automatically be deemed to agree to remove monetary liens, including, but not limited to, current taxes. If Seller does not timely agree to remove exceptions properly and timely disapproved by 689 7 Buyer, Buyer may terminate this Agreement by written notice to Seller. 10.2 Permitted Title Exceptions. The printed boilerplate exceptions of the title policy (except for those eliminated based on a typical owner’s affidavit/certificate), liens for property taxes and assessments not yet due, and any title exceptions approved by Buyer hereunder are collectively referred to herein as the “Permitted Exceptions”. If Buyer waives, in writing, its previous objection(s) under Section 10.1 to matters affecting title to the Property, the title matters that were the subject of the waived objection(s) will become Permitted Exceptions. If the Agreement is terminated pursuant to Section 10.1, all funds deposited by Buyer with Escrow shall be returned to Buyer (less Buyer’s share of escrow cancellation charges), and this Agreement will have no further force and effect. Notwithstanding the foregoing, Seller shall cause the removal from the Title Policy, prior to Closing, of all monetary encumbrances recorded against the Property, other than liens recorded as a result of acts or omissions of Buyer. 10.3 Title. At the Close of Escrow, fee title to the Property shall be conveyed by Seller to Buyer, subject to the following: (a)the Permitted Exceptions; and (b)matters affecting the condition of title created by or with the written consent of Buyer in accordance with this Agreement. 11.Conditions to Buyer’s Consummation of the Transaction Contemplated by this Agreement. The City’s securing of funding for the Purchase Price and the execution and acknowledgment of a Surface Waiver Agreement by California Resources Production Corporation, a Delaware corporation, as agent of and operator for its affiliate California Resources Petroleum Corporation, a Delaware Corporation (formerly registered under the name Vintage Production California, LLC, a Delaware limited liability company) and Buyer substantially in the form attached hereto as Exhibit D, and following matters are conditions precedent to the consummation by Buyer of the transaction contemplated by this Agreement: 11.1 Due Diligence Inspection of the Property. During the Due Diligence Period, Buyer may conduct a due diligence investigation of the Property. Prior to the Closing, Buyer and its designated agents, contractors, engineers, architects and consultants (collectively “Buyer’s Agents”) shall have the right at Buyer’s risk and liability, to enter onto the Property to the extent necessary in Buyer’s sole discretion for the purpose of surveying, planning studies, conducting soil tests, environmental tests, engineering studies and the like; provided, however, that Buyer shall not conduct any invasive studies without the prior written consent of Seller, which Seller shall not unreasonably withhold. All aspects of Buyer’s due diligence inspection and review of the Property shall be performed at Buyer’s sole expense. During entry on the Property for purposes of the due diligence investigation, Buyer shall maintain in full force and effect comprehensive general liability insurance with coverage of not less than One Million Dollars ($1,000,000) naming Seller as additional insured. A copy of such insurance shall be delivered by Buyer to Seller. 11.2 Matters to be Reviewed. Buyer’ inspection of the Property during the Due Diligence Period may include all matters affecting the Property, determined in Buyer’s sole discretion, including, but not limited to, the matters set forth in Sections 10.1, 11.1, and 11.2. Seller shall 690 8 reasonably cooperate with Buyer’s inspection of the Property and shall promptly respond to all reasonable inquiries by Buyer and its agents and employees relating to the Property. (a)The physical condition of the Property, including without limitation, soil conditions, the status of the Property with respect to asbestos and other hazardous and toxic materials, all matters disclosed by a Phase I Environmental Report, if any, and compliance of the Property with all applicable laws, including any laws relating to hazardous and toxic materials. Seller shall allow Buyer and/or its agents reasonable access to the Property to perform any and all investigations and inspections desired by Buyer (provided that any entry shall be in conformity with the provisions set forth in Sections 11.1 and 11.5); (b)All applicable government ordinances, rules and regulations and evidence of compliance of the Property therewith, including without limitation, zoning and building regulations; (c)All existing licenses, permits, final tract maps, grading plans and other governmental approvals and/or authorizations relating to the Property; and (d)All agreements, contracts, documents, instruments, reports and surveys relating to the Property, including but not limited to all material matters of any kind or nature relating to the use of the Property. 11.3 Due Diligence Documents. Within seven (7) days of the Effective Date, Seller shall make available to Buyer, for review and/or copying, documents and materials relating to the Property, including, without limitation, all plans, specifications, drawings, permits and all of the following documents relating to the Property which are reasonably available to Seller (collectively, the “Due Diligence Documents”): (a)any soils or toxic materials reports, engineering tests, environmental or geological studies, and similar data pertaining to any portion of the Property, including a summary of environmental indemnities pertaining to the Property and/or otherwise benefiting Seller; and (b)any reports relating to water supply, quality, and volume relating to the Property. 11.4 Buyer’s Right to Terminate Agreement. If Buyer, in its sole and absolute discretion, disapproves any aspect of its due diligence inspection of the Property, Buyer shall have the right, in its sole and absolute discretion, to terminate this Agreement by giving written notice of such election to Seller and Escrow Holder at any time during the Due Diligence Period. If Buyer terminates this Agreement prior to the expiration of the Due Diligence Period pursuant to the provisions of this Section 11.4, this Agreement shall automatically terminate, the Deposit shall be returned by Escrow Holder to Buyer, and neither party shall have any further rights or obligations under this Agreement. If Buyer does not terminate this Agreement during the Due Diligence Period as set forth in this Section 11.4, following Buyer’s receipt of a written demand by Seller requesting that Buyer waive its right to terminate under this Section 11.4 in writing and the passage of two (2) business days in which Buyer fails to either do so or respond, Buyer shall be deemed to have elected to terminate this Agreement, in which case the Initial Deposit shall be returned to Buyer in accordance with Section 4.1, above all without liability or obligation thereafter to Seller and/or the Escrow Holder. 691 9 11.5 Entry. Buyer and Buyer’s agents shall have the right, at reasonable times during the Due Diligence Period and upon forty-eight (48) telephonic hours notice to Seller to enter upon the Property for the purpose of conducting Buyer’s due diligence inspection. In this regard, Buyer agrees that: (a)Buyer shall indemnify, defend and hold Seller harmless for, from and against any and all claims, damages, costs, liabilities and losses (including mechanics’ liens) arising out of any entry by Buyer or its agents, designees or representatives, excepting those claims, damages, costs, liabilities and losses arising solely out of Buyer’s discovery of pre-existing conditions (this indemnity provision shall survive the Closing or any earlier termination of this Agreement); and, (b)Buyer shall restore the real property portion of the Property as close as possible to the condition it existed in prior to any Buyer testing or inspection, at Buyer’s sole cost and expense. Until restoration is complete, Buyer shall take all steps reasonably necessary to ensure that any and all conditions on the Property created by Buyer’s testing shall not interfere with the normal operation of the Property or create any dangerous, unhealthy, unsightly or noisy conditions on the Property. 11.6 Buyer’s Right to Terminate Agreement. In the event the contingencies set forth in Section 11 above or Section 12.1 below are not satisfied on or before the Closing Deadline, Buyer shall have the right in its sole discretion and without liability to Seller to terminate this Agreement. In such event, the respective funds deposited in Escrow by Buyer and Seller shall be returned by Escrow Holder to Buyer and Seller (less each party’s share of any escrow cancellation charges). In such case, Seller will deposit with Escrow Holder, for disbursement to Buyer, any portion of the Deposit previously distributed to Seller by Escrow Holder under the provisions of this Agreement. 12.Conditions to Close of Escrow. 12.1 Closing Date Conditions to Buyer’s Obligation to Close Escrow. The following are additional conditions precedent to all of Buyer’s obligations under this Agreement, and may be waived only in a writing signed by Buyer: (a)Seller shall have substantially performed each and every one of Seller’s obligations set forth in this Agreement; (b)All of the warranties and representations of Seller set forth in this Agreement shall be true and correct in all material respects as of the Closing Date; (c)Title Company shall irrevocably be ready, willing and able to issue the Title Policy to Buyer at Closing, except that this shall not be a condition to Buyer’s obligations if the Title Company cannot irrevocably commit to issue the Title Policy by reason of an action or omission of Buyer taken after the Effective Date; (d)Seller has made all deliveries to Escrow Holder required by Sections 6.1 and 6.3, above; (e)Buyer shall have secured funding for the Purchase Price by Close of Escrow; and 692 10 (f)Buyer shall deposit with Escrow Holder the fully-executed and acknowledged Surface Waiver Agreement discussed above in Section 11 in substantially the form attached as Exhibit D hereto. 12.2 Closing Date Conditions to Seller’s Obligations. The following are conditions precedent to all of Seller’s obligations under this Agreement, and may be waived only in a writing signed by Seller: (a)Buyer shall have performed each and every one of Buyer’s obligations set forth in this Agreement; (b)All of the warranties and representations of Buyer set forth in this Agreement shall be true and correct in all material respects as of the Closing Date; and (c)Buyer has made all deliveries to Escrow Holder required by Sections 6.2 and 6.3, above. 13.Representations and Warranties of Seller. Seller represents and warrants to Buyer, as of the Effective Date and as of the Closing Date, as follows: 13.1 Status of and Execution by Seller. Seller is duly authorized, qualified and licensed under the laws of the State of California to conduct business and do all things required of it under or in connection with this Agreement, including to execute, deliver and perform this Agreement. All agreements, instruments, and documents herein provided to be executed by Seller will be duly executed by and binding upon Seller as of the Closing. 13.2 Consents. There is no consent of any third party that Seller has not obtained which is necessary to enable Seller to execute, deliver and perform its obligations under this Agreement. 13.3 Hazardous Materials. Except as set forth in Schedule 13.3, Seller has not received any written notice of any: (i) proceedings or claims by any governmental authority or other person that there are now or have there been any hazardous wastes, materials or substances (as said terms are defined in any applicable federal, state or county laws) (collectively, “Hazardous Materials”) located on or within any portion of the Property; (ii) enforcement, clean-up, removal or other governmental or regulatory actions instituted or threatened pursuant to any applicable federal, state or local laws or ordinances relating to any Hazardous Materials and affecting the Property, or any portion thereof; (iii) claims made or threatened by any person or entity against Seller or the Property, or any portion thereof, relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Materials; (iv) underground storage tanks located on the Property and now or formerly used for the storage or containment of any Hazardous Materials, including any petroleum products or by-products; or (v) proceedings or claims by any governmental authority or other person that Seller or the Property is in violation of any Environmental Law (the term “Environmental Law” includes, without limitation, any federal, state, local or administrative agency statute, regulation, rule, ordinance, order or requirement relating to pollution, protection of human health, the environment or Hazardous Materials). 13.4 Condemnation. There is presently no pending condemnation or, to Seller’s knowledge, no contemplated condemnation of the Property or any part thereof. 693 11 14.As Is Purchase. 14.1 Condition of Property. Buyer acknowledges and agrees that it is purchasing the Property based solely upon Buyer’s inspection and investigation of the Property and all documents related thereto, or its opportunity to do so, and except for the express representations and warranties set forth in this Agreement, Buyer is purchasing the Property in an “AS IS, WHERE IS, WITH ALL FAULTS” condition, without relying upon any representations or warranties, express, implied or statutory, of any kind. Without limiting the above, Buyer acknowledges that neither Seller, except as expressly set forth in this Agreement, nor any other party has made any representations or warranties, express or implied, on which Buyer is relying as to any matters, directly or indirectly, concerning the Property including, but not limited to, the land, the square footage of the Property, improvements and infrastructure, if any, development rights and exactions, expenses associated with the Property, taxes, assessments, bonds, permissible uses, title exceptions, water or water rights, topography, utilities, zoning of the Property, soil, subsoil, the purposes for which the Property is to be used, drainage, environmental or building laws, rules or regulations, toxic waste or Hazardous Materials or any other matters affecting or relating to the Property. Buyer hereby expressly acknowledges that no such representations have been made. Buyer further acknowledges that the Property is currently part of a larger project, and that prior owners may have previously conducted oil and gas exploration and operations upon such larger project. The Closing of the purchase of the Property by Buyer hereunder shall be conclusive evidence that (1) Buyer has fully and completely inspected (or has caused to be fully and completely inspected) the Property, and (2) Buyer accepts the Property as being in good and satisfactory condition and suitable for Buyer’s purposes. Buyer shall perform and rely solely upon its own investigation concerning its intended use of the Property, the Property’s fitness therefore, and the availability of such intended use under applicable statutes, ordinances, and regulations. Buyer further acknowledges and agrees that Seller’s cooperation with Buyer in connection with Buyer’s due diligence review of the Property, whether by providing documents, or permitting inspection of the Property, shall not be construed as any warranty or representation, express or implied, of any kind with respect to the Property, or with respect to the accuracy, completeness, or relevancy of any such documents. Without limiting the generality of the foregoing, as of the Closing, and except for any breach of any representation of warranty made by Seller herein, the Buyer hereby expressly waives, releases and relinquishes any and all Claims (as hereinafter defined). For the purpose of this Agreement, a “Claim” is a Loss arising from or in any way associated with: (V) the use of the Landfill Property (as defined above in Section 1.14 and in the Grant Deed), or any extension or expansion thereof, as a landfill and any claims for nuisance or other objection to such operations (W) acts or omissions of the Buyer with respect to, or occurring on, the Property; (X) the ownership, control, use, possession, or operation of the Property; (Y) any condition existing or occurring in, on or under or within the Property, regardless of whether the condition first existed before or after Closing, including, but not limited to: (A) the death or injury or any person or persons; (B) the damage or destruction of any property or properties; (C) the violation or alleged violation of any federal, state, local, or municipal law, rule, regulation, order judgment, decree or other requirement, including, without limitation, requirements under permits, licenses, consents and approvals; (D) the existence, assessment or remediation of Hazardous Materials upon, under, in or 694 12 emanating from, the Property; (E) emissions, discharges, releases or threatened releases, or the presence, generation, manufacturing, processing, distribution, use, treatment, storage, disposal, transport, labeling, advertising, sale, display or handling, or Hazardous Materials; (F) any special, indirect or consequential damages (including, but not limited to, claims for loss of use, rents anticipated profit or business opportunity, or business interruption, diminution in value, or mental or emotional distress or fear of injury or illness, trespass, nuisance or otherwise); (G) any response costs the Buyer that may incur with respect to the Property under any environmental laws; or (H) any cause of action or theory of any kind as a result of, in connection with or in any way related to, the ownership and operation of the Property. The Buyer acknowledges and agrees that matters shall not be excluded from Claims based on the fact that Seller is alleged or proven to have been negligent, actively or passively, or to be strictly or absolutely liable, except that Claims do not extend to matter which are based on claims made by an individual or entity other than the Buyer which are determined by final non-appealable judgment to have been solely caused by the gross negligence or willful misconduct of the Seller. Notwithstanding the foregoing, Seller agrees that Claims shall not include (i) any of the Seller’s obligations under this Agreement, (ii) any claims for wrongful death, bodily injury or damage to tangible personal property arising from any events or occurrences which occurred prior to the Closing, or (iii) any claims based on Seller failing to perform or discharge its obligations under any written contracts or agreements Seller has entered into with respect to the Property but only to the extent such obligations accrued or arose prior to the Closing. BUYER HEREBY ACKNOWLEDGES THAT IT HAS READ AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542 (“SECTION 1542”), WHICH IS SET FORTH BELOW: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” BY INITIALING BELOW, BUYER HEREBY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE MATTERS WHICH ARE THE SUBJECT OF THE FOREGOING WAIVERS AND RELEASES: _____________ Initials The waivers and releases by Buyer herein contained shall survive the Closing and the recordation of the Grant Deed and shall not be deemed merged into the Grant Deed upon its recordation. 14.2 Limitation on Seller’s Liability. Except with respect to the express representations set forth in this Agreement, the Buyer represents and covenants that Seller shall not have any liability, obligation or responsibility of any kind with respect to any of the following: (a)The content or accuracy of any report, study, opinion or conclusion of any soils, toxic, environmental or other engineer or other person or entity who has examined the Property or any aspect thereof; 695 13 (b)The content or accuracy of any information released to Buyer by an engineer or planner in connection with the development of the Property; (c)The availability of permits or approvals for the Property by any state or local governmental bodies with jurisdiction over the Property; (d)The availability or capacity of sewer, water or any other utility service to the Property; (e)Any of the items delivered to Buyer pursuant to Buyer’s review of the condition of the Property; and (f)The presence of any protected, threatened, or endangered organisms, plant life or species on the Property, or the requirements of any governmental agency to mitigate the effects of development of the Property on any such plant life or organism or species. 15.Representations and Warranties of Buyer. Buyer represents and warrants to Seller, as of the Effective Date and as of the Closing Date, as follows: 15.1 Status of and Execution by Buyer. Buyer is now and on the Closing Date will be a municipal corporation: (i) duly formed and validly existing under the laws of the State of California; and (ii) duly authorized, qualified and licensed to do all things required of it under or in connection with this Agreement, including to execute, deliver and perform this Agreement. All agreements, instruments, and documents herein provided to be executed by Buyer will be duly executed by and binding upon Buyer as of the Closing. 15.2 No Violations. To the best knowledge of Buyer, neither this Agreement nor any of the agreements, instruments and documents herein provided to be executed or to be caused to be executed by Buyer violate or will violate any provision of any agreement, law, regulation or judicial order to which Buyer is a party or by which it is bound. 15.3 Consents. There is no consent of any third party that Buyer has not obtained which is necessary to enable Buyer to execute, deliver and perform its obligations under this Agreement. 16.Survival; Remedies. 16.1 Survival. All of the representations and warranties of any party hereto contained in this Agreement and the liabilities and obligations of the parties with respect thereto shall survive the Closing hereunder for one (1) year. The covenants and agreements contained in this Agreement and the certificates and other documents delivered pursuant to this Agreement that by their terms are performable after the Closing shall survive the Closing to the extent applicable. Such representations, warranties, covenants and agreements contained herein are exclusive, and the parties hereto confirm that they have not relied upon any other representations, warranties, covenants and agreements as an inducement to enter into this Agreement or otherwise. 16.2 Indemnification by Seller. Seller agrees that it will indemnify, defend (as to third party claims only) by counsel acceptable to Buyer in its reasonable discretion, protect and hold harmless Buyer, its directors, officers, employees, members, and agents after the Closing Date from 696 14 and against all losses, claims, damages, penalties, liabilities, demands, costs and expenses, including litigation costs and attorney’s fees incurred as a result of: (a) any breach of the representations and warranties of Seller set forth herein or in any certificate delivered pursuant hereto by Seller; or (b) breach of any agreement or covenant on the part of Seller made in this Agreement. 16.3 Indemnification by Buyer. Buyer agrees that it will indemnify, defend (as to third party claims only) by counsel acceptable to Seller in its reasonable discretion, protect and hold harmless Seller, its directors, officers, employees, members, and agents after the date of this Agreement from and against all losses, claims, damages penalties, liabilities, demands, costs and expenses, including litigation costs and attorney’s fees incurred as a result of: (a) any breach of the representations and warranties of Buyer set forth herein or in any certificate delivered pursuant hereto by Buyer; or (b) breach of any agreement or covenant on the part of Buyer made in this Agreement. 16.4 Limitations on Liability. (a) The indemnification obligations set forth in Subsections 16.2 and 16.3 of this Section 16 shall apply only if a Closing occurs (in the event a Closing does not occur, Sections 19 and 20 shall apply), and then only after the aggregate amount of indemnification obligations of the indemnifying party under this Agreement exceed five percent (5%) of the Purchase Price (the “Deductible”) at which time the indemnification obligations shall be effective as to all amounts in excess of the Deductible. Further, the indemnification obligations set forth in Subsections 16.2 and 16.3 shall be limited to an aggregate amount not to exceed twenty five percent (25%) of the Purchase Price actually paid by the Buyer. (b) The amount of any damages for which an indemnified party claims indemnification under this Agreement shall be reduced by: (i) any available insurance proceeds with respect to such damages; (ii) the value of any net tax benefit realized (including by reason of a tax deduction, basis reduction, credits and/or deductions or otherwise) by the indemnified party in connection with such damages and (iii) indemnification or reimbursement payments available from third parties; provided however the indemnifying party shall first pay any such costs and the indemnified party shall thereafter reimburse the indemnifying party in the event the indemnified party later makes a recovery under (i) (ii) or (iii) above. (c) Liability for indemnification under this Section 16.4 shall be determined without duplication of recovery by reason of the state of facts giving rise to such liability constituting a breach of more than one representation, warranty, covenant or agreement. (d) THE LIABILITY OF SELLER OR THE BUYER FOR ANY MISREPRESENTATION OR BREACH OF WARRANTY OR THE FAILURE TO SATISFY ANY COVENANT OR OTHER OBLIGATION IN THIS AGREEMENT SHALL BE LIMITED TO DIRECT DAMAGES AND SHALL NOT INCLUDE INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES (WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE, INCLUDING THE NEGLIGENCE OR GROSS NEGLIGENCE OF EITHER OR BOTH PARTIES AND WHETHER OR NOT FORESEEABLE). 17.Notices. Notices shall be sent as follows to: 697 15 If to Buyer: City of Moorpark Attn: City Manager 799 Moorpark Avenue Moorpark, California 93021 With copies to: Richards, Watson & Gershon Attn: Kevin Ennis 355 S. Grand Street, 40th Floor Los Angeles, California 90071 If to Seller: Waste Management of California, Inc. Attn: Regional General Counsel 222 S. Mill Avenue, #333 Tempe, Arizona 85281 With copies to: Slovak Baron Empey Murphy & Pinkney LLP Attn: Marc E. Empey 1800 E. Tahquitz Canyon Way Palm Springs, California 92262 Escrow Holder and Title Company: Lawyers Title Company Attn: Noel Palacios 2751 Park View Court, Suite 241 Oxnard, California 93036 All notices or other communications required or permitted hereunder must be in writing, and may be delivered by personal delivery, same day messenger or overnight courier (such as Federal Express, DHL, or UPS). Personally delivered and messenger notices shall be deemed given upon actual delivery to the intended recipient. Notices sent via next day delivery by overnight courier shall be deemed given the business day following the day said notices were sent. 18.Broker. Neither Seller nor Buyer have engaged or dealt with any broker or finder in connection with the sale of any portion of the Property contemplated by this Agreement. Each party shall indemnify and hold harmless the other from any claims, costs, damages or liabilities (including attorneys’ fees) by, from or relating to or arising from (i) any breach of the representation contained in this Section, or (ii) a claim based on any statement, representation or agreement by Seller or Buyer with respect to the payment of any brokerage commissions or finder’s fees. 19.Default by Seller. In the event the Closing and the consummation of the transaction contemplated by this Agreement do not occur by reason of a Seller’s Material Default, Buyer shall be entitled to pursue all remedies available to it, including but not limited to specific performance and/or damages. However, total damages shall be limited to an amount equal to the Deposit paid by Buyer under this Agreement and shall be in addition to any right which Buyer may have to a return to it of the Deposit. 698 16 20.Default by Buyer. IN THE EVENT THIS AGREEMENT IS TERMINATED BY SELLER DUE TO A FAILURE OF THE CLOSING TO OCCUR AS A RESULT OF A BUYER MATERIAL DEFAULT, BUYER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ESTIMATE THE DAMAGES SUFFERED BY SELLER AS A RESULT OF SUCH BUYER MATERIAL DEFAULT AND THAT UNDER THE CIRCUMSTANCES EXISTING AS OF THE DATE OF THIS AGREEMENT, THE LIQUIDATED DAMAGES PROVIDED FOR IN THIS PARAGRAPH REPRESENT A REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER SHALL INCUR AS A RESULT OF SUCH BUYER MATERIAL DEFAULT. THEREFORE, BUYER AND SELLER AGREE THAT A REASONABLE ESTIMATE OF THE TOTAL NET MONETARY DETRIMENT THAT SELLER WILL SUFFER IN THE EVENT THIS AGREEMENT IS TERMINATED AS A RESULT OF A BUYER MATERIAL DEFAULT IS AN AMOUNT EQUAL TO THE DEPOSIT, AS THEN CONSTITUTED, TOGETHER WITH ANY INTEREST EARNED ON THE DEPOSIT. THIS AMOUNT SHALL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR A BUYER MATERIAL DEFAULT RESULTING IN A TERMINATION OF THIS AGREEMENT. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. SELLER HEREBY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389. __________________ _________________ SELLER’S INITIALS BUYER’S INITIALS 21.Miscellaneous. 21.1 Counterparts; Facsimile Signatures. This Agreement may be executed simultaneously in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. For purposes of this Agreement, facsimile and electronic signatures and initials will be deemed to be original signatures and will be valid and binding on the parties to this Agreement. 21.2 Partial Invalidity. If any term or provision of this Agreement shall be deemed to be invalid or unenforceable to any extent, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 21.3 Waivers. No waiver of any breach of any covenant or provision contained herein shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act except those of the 699 17 waiving party, which shall be extended by a period of time equal to the period of the delay. 21.4 Successors and Assigns.Subject to the provisions regarding assignment, this Agreement is binding upon and inures to the benefit of the permitted successors and assigns of the parties hereto. No party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld. 21.5 Professional Fees. In any action between Buyer and Seller seeking enforcement of any of the terms and provisions of this Agreement, including arbitration proceedings, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, not limited to taxable costs, reasonable attorneys’ fees, and reasonable fees of expert witnesses. 21.6 Entire Agreement. This Agreement, including the Recitals and all attached Exhibits, constitutes the entire agreement between the parties hereto and may not be modified except by an instrument in writing signed by the party to be charged. All prior and contemporaneous agreements, representations and understandings of the parties, oral or written, are superseded by and merged in this Agreement, and the parties acknowledge that Seller has no obligation to convey any other real property to Buyer not described in this Agreement. 21.7 Time of Essence. Seller and Buyer acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation and provision hereof. 21.8 Construction. This Agreement has been prepared by Buyer and its professional advisors and reviewed by Seller and its professional advisors. Seller and Buyer and their respective advisors believe that this Agreement is the product of all of their efforts, that it expresses their agreement and that it should not be interpreted in favor of or against either Buyer or Seller. The parties further agree that this Agreement shall be construed to effectuate the normal and reasonable expectations of sophisticated business persons. 21.9 Governing Law. The parties hereto expressly agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. 21.10 Severability. If an part, term, or provision of this Agreement is held by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining provisions will not be affected, and the rights and obligations of the parties will be construed and enforced as if this Agreement did not contain the particular part, term, or provision held to be invalid. 700 18 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. “Seller” Waste Management of California, Inc., a California corporation By: ______________________________ Name:____________________________ Title:_____________________________ “Buyer” City of Moorpark, a California municipal corporation By Janice S. Parvin, Mayor ATTEST: ___________________________________ Maureen Benson, City Clerk APPROVED AS TO FORM: By: ______________________________ Kevin Ennis, City Attorney 701 A-1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY Parcel 1 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 12°10’45” West 177.58 feet; thence North 3°49’15” East 140.70 feet to the easterly terminus of the twenty-second course of Tract 8, as Described in the Notice of Lis Pendens recorded May 19, 1966, as Instrument No. 26184 in Book 2990, Page 214 of Official Records of Ventura County, said point being the True Point of Beginning of this description; thence along the easterly prolongation of said twenty-second course, 1st:South 87°03’50” East 342.81 feet to the intersection with a line, passing through the northeasterly terminus of the second course of said Instrument No. 52910 and having a bearing of North 11° 2nd:09’17” East; thence along said line, 3rd:North 11°09’17” East 688.42 feet; thence, 4th:North 87°34’18” East 2141.98 feet; thence, 5th:South 16°21’23” East 294.33 feet; thence, 6th:South 58°41’11” East 178.06 feet; thence, 7th:North 46°41’00” East 605.51 feet; thence, 8th:North 79°31’02” East 1275.20 feet to the intersection with a line, passing through the south- easterly terminus of the ninety-ninth course of boundary of the City of Moorpark, as described in the Certificate of Completion recorded March 30, 1983, as Instrument No. 83-031119 of Official Records of Ventura County, said line having a bearing of North 77°15’24” West; thence along said line, 9th:South 77°15’24” East 554.96 feet to the southeasterly terminus of said ninety-ninth course; thence along the boundary of the City of Moorpark by the following eight courses: 702 A-2 10th:North 7°56’14” West 175.00 feet; thence, 11th:North 27°51’14” West 776.50 feet; thence, 12th:North 8°40’14” West 198.80 feet; thence, 13th:North 5°52’46” East 553.00 feet; thence, 14th:North 17°27’52” East 396.67 feet; thence, 15th:South 89°55’15” West 646.85 feet; thence, 16th:South 0°04’45” East 660.00 feet; thence, 17th:South 89°55’15” West 2433.49 feet to the northeasterly corner of Exhibit “A”, as described in the Corporation Grant Deed recorded January 21, 1987, as Instrument No. 87-008520 of Official Records of Ventura County; thence along the boundary of said Exhibit “A” by the following five courses: 18th:South 29°56’07” East 50.40 feet; thence, 19th:South 13°45’35” East 149.10 feet; thence, 20th:South 3°55’32” West 102.45 feet; thence, 21st:South 41°39’22” West 33.27 feet; thence, 22nd:North 86°09’57” West 114.54 feet to the intersection with the easterly line of Parcel “H”, as described in the Quitclaim Deed recorded March 4, 1966, as Instrument No. 12207 in Book 2953, Page 270 of Official Records of Ventura County; thence along said easterly line, 23rd:South 29°49’54” West 210.40 feet to the northerly corner of Parcel “G”, as described in said Instrument No. 12207; thence along the easterly line of said Parcel “G”, 24th:South 40°00’15” West 265.75 feet to the intersection with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following four courses: 25th:South 23°19’15” West 138.47 feet; thence, 26th:South 83°03’15” West 213.60 feet; thence, 27th:South 69°32’37” West 517.39 feet; thence, 28th:South 65°18’15” West 37.60 feet to the westerly terminus of the fifteenth course of Estate 1, as described in the Grant Deed recorded September 8, 2004, as Document No. 20040908- 0245548 of Official Records of Ventura County; thence along the boundary of said Estate 1 by the following fourteen courses: 29th:South 84°46’19” East 358.38 feet; thence, 30th:North 70°14’09” East 234.37 feet; thence, 31st:North 81°25’06” East 203.27 feet; thence, 703 A-3 32nd:South 32°40’27” East 130.77 feet; thence, 33rd:South 25°08’33” West 129.96 feet; thence, 34th:South 42°48’25” West 56.20 feet to the beginning of a non-tangent curve, concave northwesterly and having a radius of 518.00 feet, a radial to said point bears South 29°11’47” East; thence, 35th:Southwesterly along said curve an arc distance of 145.04 feet through a central angle of 16°02’33” to the beginning of a tangent reversing curve, concave southeasterly and having a radius of 582.00 feet; thence, 36th:Southwesterly along said curve an arc distance of 148.08 feet through a central angle of 14°34’40” to the beginning of a tangent reversing curve, concave northerly and having a radius of 518.00 feet; thence, 37th:Southwesterly along said curve an arc distance of 274.19 feet through a central angle of 30°19’40” to the beginning of a tangent reversing curve, concave southerly and having a radius of 582.00 feet; thence, 38th:Westerly along said curve an arc distance of 168.08 feet through a central angle of 16°32’47”; thence tangent to said curve, 39th:South 76°02’59” West 136.85 feet to the beginning of a tangent curve, concave southeasterly and having a radius of 582.00 feet; thence, 40th:Southwesterly along said curve an arc distance of 61.88 feet through a central angle of 6°05’29”; thence non-tangent to said curve, 41st:North 31°47’59” West 65.14 feet; thence, 42nd:South 58°12’01” West 64.00 feet to the intersection with the northeasterly line of the land described in the Grant Deed recorded October 21, 1988, as Instrument No. 88-159436 of Official Records of Ventura County; thence along said northeasterly line, 43rd:South 31°47’59” East 56.97 feet to a point in the centerline of a strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the northeasterly terminus of the second course described therein, and the beginning of a non-tangent curve, concave northwesterly and having a radius of 1000.00 feet, a radial to said point bears South 36°02’17” East; thence along said centerline by the following two courses: 44th:Southwesterly along said curve an arc distance of 340.34 feet through a central angle of 19°30’00” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1750.00 feet; thence, 704 A-4 45th:Southwesterly along said curve an arc distance of 137.44 feet through a central angle of 4°30’00” to the intersection with the easterly line of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along said easterly line, 46th:South 0°01’45” West 32.71 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, hereinabove described in Instrument No. 4351, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 47th:Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 48th:Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 49th:South 21°01’08” East 82.13 feet; thence, 50th:South 42°25’45” West 320.59 feet to the northerly terminus of the fifteenth course of the hereinabove described Instrument No. 74669; thence along said line, 51st:South 3°49’15” West 259.09 feet to the True Point of Beginning of this description. Containing 128.81 acres, more or less. Parcel 2 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 12°10’45” West 177.58 feet; thence North 3°49’15” East 399.79 feet to the True Point of Beginning of this description; thence continuing along the boundary of said Instrument No. 74669 by the following two courses: 705 A-5 1st: North 86°10’45” West 32.00 feet; thence, 2nd: North 0°01’15” East 243.34 to the southeasterly corner of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along the easterly line of said Exhibit “A”, 3rd: North 0°01’45” East 5.91 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 4th: Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 5th: Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 6th: South 21°01’08” East 82.13 feet; thence, 7th: South 42°25’45” West 320.59 feet to the True Point of Beginning of this description. Containing 1.00 acres, more or less. 706 B-1 EXHIBIT B DESCRIPTION OF LANDFILL PROPERTY Parcel 1 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 12°10’45” West 177.58 feet; thence North 3°49’15” East 140.70 feet to the easterly terminus of the twenty-second course of Tract 8, as Described in the Notice of Lis Pendens recorded May 19, 1966, as Instrument No. 26184 in Book 2990, Page 214 of Official Records of Ventura County, said point being the True Point of Beginning of this description; thence along the easterly prolongation of said twenty-second course, 52nd:South 87°03’50” East 342.81 feet to the intersection with a line, passing through the northeasterly terminus of the second course of said Instrument No. 52910 and having a bearing of North 11° 53rd:09’17” East; thence along said line, 54th:North 11°09’17” East 688.42 feet; thence, 55th:North 87°34’18” East 2141.98 feet; thence, 56th:South 16°21’23” East 294.33 feet; thence, 57th:South 58°41’11” East 178.06 feet; thence, 58th:North 46°41’00” East 605.51 feet; thence, 59th:North 79°31’02” East 1275.20 feet to the intersection with a line, passing through the south- easterly terminus of the ninety-ninth course of boundary of the City of Moorpark, as described in the Certificate of Completion recorded March 30, 1983, as Instrument No. 83-031119 of Official Records of Ventura County, said line having a bearing of North 77°15’24” West; thence along said line, 707 B-2 60th:South 77°15’24” East 554.96 feet to the southeasterly terminus of said ninety-ninth course; thence along the boundary of the City of Moorpark by the following eight courses: 61st:North 7°56’14” West 175.00 feet; thence, 62nd:North 27°51’14” West 776.50 feet; thence, 63rd:North 8°40’14” West 198.80 feet; thence, 64th:North 5°52’46” East 553.00 feet; thence, 65th:North 17°27’52” East 396.67 feet; thence, 66th:South 89°55’15” West 646.85 feet; thence, 67th:South 0°04’45” East 660.00 feet; thence, 68th:South 89°55’15” West 2433.49 feet to the northeasterly corner of Exhibit “A”, as described in the Corporation Grant Deed recorded January 21, 1987, as Instrument No. 87-008520 of Official Records of Ventura County; thence along the boundary of said Exhibit “A” by the following five courses: 69th:South 29°56’07” East 50.40 feet; thence, 70th:South 13°45’35” East 149.10 feet; thence, 71st:South 3°55’32” West 102.45 feet; thence, 72nd:South 41°39’22” West 33.27 feet; thence, 73rd:North 86°09’57” West 114.54 feet to the intersection with the easterly line of Parcel “H”, as described in the Quitclaim Deed recorded March 4, 1966, as Instrument No. 12207 in Book 2953, Page 270 of Official Records of Ventura County; thence along said easterly line, 74th:South 29°49’54” West 210.40 feet to the northerly corner of Parcel “G”, as described in said Instrument No. 12207; thence along the easterly line of said Parcel “G”, 75th:South 40°00’15” West 265.75 feet to the intersection with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following four courses: 76th:South 23°19’15” West 138.47 feet; thence, 77th:South 83°03’15” West 213.60 feet; thence, 78th:South 69°32’37” West 517.39 feet; thence, 79th:South 65°18’15” West 37.60 feet to the westerly terminus of the fifteenth course of Estate 1, as described in the Grant Deed recorded September 8, 2004, as Document No. 20040908- 0245548 of Official Records of Ventura County; thence along the boundary of said Estate 1 by the following fourteen courses: 80th:South 84°46’19” East 358.38 feet; thence, 708 B-3 81st:North 70°14’09” East 234.37 feet; thence, 82nd:North 81°25’06” East 203.27 feet; thence, 83rd:South 32°40’27” East 130.77 feet; thence, 84th:South 25°08’33” West 129.96 feet; thence, 85th:South 42°48’25” West 56.20 feet to the beginning of a non-tangent curve, concave northwesterly and having a radius of 518.00 feet, a radial to said point bears South 29°11’47” East; thence, 86th:Southwesterly along said curve an arc distance of 145.04 feet through a central angle of 16°02’33” to the beginning of a tangent reversing curve, concave southeasterly and having a radius of 582.00 feet; thence, 87th:Southwesterly along said curve an arc distance of 148.08 feet through a central angle of 14°34’40” to the beginning of a tangent reversing curve, concave northerly and having a radius of 518.00 feet; thence, 88th:Southwesterly along said curve an arc distance of 274.19 feet through a central angle of 30°19’40” to the beginning of a tangent reversing curve, concave southerly and having a radius of 582.00 feet; thence, 89th:Westerly along said curve an arc distance of 168.08 feet through a central angle of 16°32’47”; thence tangent to said curve, 90th:South 76°02’59” West 136.85 feet to the beginning of a tangent curve, concave southeasterly and having a radius of 582.00 feet; thence, 91st:Southwesterly along said curve an arc distance of 61.88 feet through a central angle of 6°05’29”; thence non-tangent to said curve, 92nd:North 31°47’59” West 65.14 feet; thence, 93rd:South 58°12’01” West 64.00 feet to the intersection with the northeasterly line of the land described in the Grant Deed recorded October 21, 1988, as Instrument No. 88-159436 of Official Records of Ventura County; thence along said northeasterly line, 94th:South 31°47’59” East 56.97 feet to a point in the centerline of a strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the northeasterly terminus of the second course described therein, and the beginning of a non-tangent curve, concave northwesterly and having a radius of 1000.00 feet, a radial to said point bears South 36°02’17” East; thence along said centerline by the following two courses: 709 B-4 95th:Southwesterly along said curve an arc distance of 340.34 feet through a central angle of 19°30’00” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1750.00 feet; thence, 96th:Southwesterly along said curve an arc distance of 137.44 feet through a central angle of 4°30’00” to the intersection with the easterly line of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along said easterly line, 97th:South 0°01’45” West 32.71 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, hereinabove described in Instrument No. 4351, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 98th:Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 99th:Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 100th:South 21°01’08” East 82.13 feet; thence, 101st:South 42°25’45” West 320.59 feet to the northerly terminus of the fifteenth course of the hereinabove described Instrument No. 74669; thence along said line, 102nd:South 3°49’15” West 259.09 feet to the True Point of Beginning of this description. Containing 128.81 acres, more or less. Parcel 2 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 710 B-5 12°10’45” West 177.58 feet; thence North 3°49’15” East 399.79 feet to the True Point of Beginning of this description; thence continuing along the boundary of said Instrument No. 74669 by the following two courses: 1st: North 86°10’45” West 32.00 feet; thence, 2nd: North 0°01’15” East 243.34 to the southeasterly corner of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along the easterly line of said Exhibit “A”, 3rd: North 0°01’45” East 5.91 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 4th: Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 5th: Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 6th: South 21°01’08” East 82.13 feet; thence, 7th: South 42°25’45” West 320.59 feet to the True Point of Beginning of this description. Containing 1.00 acres, more or less. 711 C-1 EXHIBIT C FORM OF GRANT DEED RECORDING REQUESTED BY City of Moorpark WHEN RECORDED, PLEASE MAIL TO: City of Moorpark Attention Office of the City Clerk 799 Moorpark Avenue Moorpark, CA 93021 Space above for Recorder’s Use [X] All of APN 500-0-281-465 [X] Portions of 500-0-281-545, 500-0-292-195 Documentary Transfer Tax $0.00 − Exempt transfer to City of Moorpark, a public entity This Instrument is for the benefit of the City of Moorpark and is exempt from Recording Fees (Govt. Code § 27383), Filing Fees (Govt. Code § 6103), and Documentary Transfer Tax (Rev & Tax Code § 11922) GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, WASTE MANAGEMENT OF CALIFORNIA, INC., a California corporation (“Grantor”) hereby GRANTS to CITY OF MOORPARK, a California municipal corporation (“Grantee”), that certain real property, which is approximately 129 acres (“Parcel 1”) and 1 acre (“Parcel 2”) in size, located in the City of Moorpark, County of Ventura, State of California. Parcel 1 and Parcel 2 are more particularly described on Attachment 1 attached hereto (collectively the “Property”) for a public use, namely open space purposes and al uses necessary or convenient thereto, including but not limited to functional land for the public. Together with all water, water rights, water appropriations, ditches, ditch rights-of-way and ditch rights as heretofore used and enjoyed in connection with the above-described lands, and all hereditaments, easements, incidents and appurtenances thereto. Reserving unto Grantor, together with the right to grant and transfer all or a portion of the same, the following mineral rights and restrictions for the benefit of Grantor, its successors and assigns, for the benefit of, and appurtenant to, that certain real property located in the County of Ventura, State of California owned by the Grantor described on Attachment 2, attached hereto and incorporated herein 712 C-2 by this reference (the “Landfill Property”), and any successors in title to the Landfill Property (individually and collectively, the “Benefitted Parties”), which shall run with the land and bind Grantee and any successors in title to the Property as follows: 1. MINERAL RIGHTS. Grantor reserves all mineral rights: (i) mineral rights consistent with the exploitation of mineral resources on the Property of every kind and character now known to exist or hereafter discovered within or underlying the Property below the top 500 feet thereof, together with the right to develop and/or extract the same without, however, the right to enter, drill, dig, or mine through the top 500 feet of said Property or interfere with Buyer’s use of the Property, and (ii) the rights granted by Seller to California Resources Production Corporation, a Delaware corporation, as agent of an operator for its affiliate California Resources Petroleum Corporation, a Delaware Corporation (previously registered as Vintage Production California, LLC) pursuant to that certain Oil, Gas and Mineral Lease dated July 15, 2014. 2. LIMITATIONS ON CONSTRUCTION OF APPARATUS VISIBLE FROM 118 FREEWAY. Grantor and its successors in interest, successors and assigns shall not construct any permanent drilling apparatus in connection with Grantor’s reservation of mineral rights on the Property or use of the Property for oil field and related purposes that is visible from the 118 Freeway. 3. USE RESTRICTIONS. Grantee and Grantee’s successors in interest shall refrain from using or permitting the use of the Property for any residential uses or uses commonly known as “sensitive receptors” as set forth in the Appendix A of the Ventura County Air Quality Assessment Guidelines, i.e. facilities or land uses that include members of the population that are particularly sensitive to the effects of air pollutants, such as children, the elderly, and people with illnesses. Examples include schools, hospitals, and daycare centers. Grantor expressly acknowledges and agrees that said use restrictions shall not apply to Grantee’s use of the Property for a visitor’s center and related appurtenances and improvements. WASTE MANAGEMENT OF CALIFORNIA, INC., a California corporation Date: ________________________ By: _________________________ Name: _______________________ Title: ________________________ 713 C-3 ATTACHMENT 1 LEGAL DESCRIPTION OF THE PROPERTY Parcel 1 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 12°10’45” West 177.58 feet; thence North 3°49’15” East 140.70 feet to the easterly terminus of the twenty-second course of Tract 8, as Described in the Notice of Lis Pendens recorded May 19, 1966, as Instrument No. 26184 in Book 2990, Page 214 of Official Records of Ventura County, said point being the True Point of Beginning of this description; thence along the easterly prolongation of said twenty-second course, 103rd:South 87°03’50” East 342.81 feet to the intersection with a line, passing through the northeasterly terminus of the second course of said Instrument No. 52910 and having a bearing of North 11° 104th:09’17” East; thence along said line, 105th:North 11°09’17” East 688.42 feet; thence, 106th:North 87°34’18” East 2141.98 feet; thence, 107th:South 16°21’23” East 294.33 feet; thence, 108th:South 58°41’11” East 178.06 feet; thence, 109th:North 46°41’00” East 605.51 feet; thence, 110th:North 79°31’02” East 1275.20 feet to the intersection with a line, passing through the south- easterly terminus of the ninety-ninth course of boundary of the City of Moorpark, as described in the Certificate of Completion recorded March 30, 1983, as Instrument No. 83-031119 of Official Records of Ventura County, said line having a bearing of North 77°15’24” West; thence along said line, 111th:South 77°15’24” East 554.96 feet to the southeasterly terminus of said ninety-ninth course; thence along the boundary of the City of Moorpark by the following eight courses: 714 C-4 112th:North 7°56’14” West 175.00 feet; thence, 113th:North 27°51’14” West 776.50 feet; thence, 114th:North 8°40’14” West 198.80 feet; thence, 115th:North 5°52’46” East 553.00 feet; thence, 116th:North 17°27’52” East 396.67 feet; thence, 117th:South 89°55’15” West 646.85 feet; thence, 118th:South 0°04’45” East 660.00 feet; thence, 119th:South 89°55’15” West 2433.49 feet to the northeasterly corner of Exhibit “A”, as described in the Corporation Grant Deed recorded January 21, 1987, as Instrument No. 87-008520 of Official Records of Ventura County; thence along the boundary of said Exhibit “A” by the following five courses: 120th:South 29°56’07” East 50.40 feet; thence, 121st:South 13°45’35” East 149.10 feet; thence, 122nd:South 3°55’32” West 102.45 feet; thence, 123rd:South 41°39’22” West 33.27 feet; thence, 124th:North 86°09’57” West 114.54 feet to the intersection with the easterly line of Parcel “H”, as described in the Quitclaim Deed recorded March 4, 1966, as Instrument No. 12207 in Book 2953, Page 270 of Official Records of Ventura County; thence along said easterly line, 125th:South 29°49’54” West 210.40 feet to the northerly corner of Parcel “G”, as described in said Instrument No. 12207; thence along the easterly line of said Parcel “G”, 126th:South 40°00’15” West 265.75 feet to the intersection with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following four courses: 127th:South 23°19’15” West 138.47 feet; thence, 128th:South 83°03’15” West 213.60 feet; thence, 129th:South 69°32’37” West 517.39 feet; thence, 130th:South 65°18’15” West 37.60 feet to the westerly terminus of the fifteenth course of Estate 1, as described in the Grant Deed recorded September 8, 2004, as Document No. 20040908- 0245548 of Official Records of Ventura County; thence along the boundary of said Estate 1 by the following fourteen courses: 131st:South 84°46’19” East 358.38 feet; thence, 132nd:North 70°14’09” East 234.37 feet; thence, 133rd:North 81°25’06” East 203.27 feet; thence, 715 C-5 134th:South 32°40’27” East 130.77 feet; thence, 135th:South 25°08’33” West 129.96 feet; thence, 136th:South 42°48’25” West 56.20 feet to the beginning of a non-tangent curve, concave northwesterly and having a radius of 518.00 feet, a radial to said point bears South 29°11’47” East; thence, 137th:Southwesterly along said curve an arc distance of 145.04 feet through a central angle of 16°02’33” to the beginning of a tangent reversing curve, concave southeasterly and having a radius of 582.00 feet; thence, 138th:Southwesterly along said curve an arc distance of 148.08 feet through a central angle of 14°34’40” to the beginning of a tangent reversing curve, concave northerly and having a radius of 518.00 feet; thence, 139th:Southwesterly along said curve an arc distance of 274.19 feet through a central angle of 30°19’40” to the beginning of a tangent reversing curve, concave southerly and having a radius of 582.00 feet; thence, 140th:Westerly along said curve an arc distance of 168.08 feet through a central angle of 16°32’47”; thence tangent to said curve, 141st:South 76°02’59” West 136.85 feet to the beginning of a tangent curve, concave southeasterly and having a radius of 582.00 feet; thence, 142nd:Southwesterly along said curve an arc distance of 61.88 feet through a central angle of 6°05’29”; thence non-tangent to said curve, 143rd:North 31°47’59” West 65.14 feet; thence, 144th:South 58°12’01” West 64.00 feet to the intersection with the northeasterly line of the land described in the Grant Deed recorded October 21, 1988, as Instrument No. 88-159436 of Official Records of Ventura County; thence along said northeasterly line, 145th:South 31°47’59” East 56.97 feet to a point in the centerline of a strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the northeasterly terminus of the second course described therein, and the beginning of a non-tangent curve, concave northwesterly and having a radius of 1000.00 feet, a radial to said point bears South 36°02’17” East; thence along said centerline by the following two courses: 146th:Southwesterly along said curve an arc distance of 340.34 feet through a central angle of 19°30’00” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1750.00 feet; thence, 716 C-6 147th:Southwesterly along said curve an arc distance of 137.44 feet through a central angle of 4°30’00” to the intersection with the easterly line of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along said easterly line, 148th:South 0°01’45” West 32.71 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, hereinabove described in Instrument No. 4351, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 149th:Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 150th:Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 151st:South 21°01’08” East 82.13 feet; thence, 152nd:South 42°25’45” West 320.59 feet to the northerly terminus of the fifteenth course of the hereinabove described Instrument No. 74669; thence along said line, 153rd:South 3°49’15” West 259.09 feet to the True Point of Beginning of this description. Containing 128.81 acres, more or less. Parcel 2 Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: North 12°10’45” West 177.58 feet; thence North 3°49’15” East 399.79 feet to the True Point of Beginning of this description; thence continuing along the boundary of said Instrument No. 74669 by the following two courses: 717 C-7 1st: North 86°10’45” West 32.00 feet; thence, 2nd: North 0°01’15” East 243.34 to the southeasterly corner of Exhibit “A”, as described in the Agreement of Purchase and Sale recorded August 15, 1963, as Instrument No. 47481 in Book 2375, Page 52 of Official Records of Ventura County; thence along the easterly line of said Exhibit “A”, 3rd: North 0°01’45” East 5.91 feet to the intersection with the southerly line of the strip of land, 64.00 feet wide, as described in Exhibit “A” of the Corporation Easement Deed recorded January 23, 1974, as Instrument No. 4351 in Book 4215, Page 429 of Official Records of Ventura County, said point being the beginning of a non-tangent curve, concave northwesterly and having a radius of 1782.00 feet, a radial to said point bears South 11°49’05” East; thence along said strip of land by the following two courses: 4th: Northeasterly along said curve an arc distance of 146.80 feet through a central angle of 4°43’12” to the beginning of a tangent compound curve, concave northwesterly and having a radius of 1032.00 feet; thence, 5th: Northwesterly along said curve an arc distance of 80.71 feet through a central angle of 4°28’51”; thence radial to said curve, 6th: South 21°01’08” East 82.13 feet; thence, 7th: South 42°25’45” West 320.59 feet to the True Point of Beginning of this description. Containing 1.00 acres, more or less. 718 C-8 ATTACHMENT 2 DESCRIPTION OF GRANTOR’S BENEFITTED PROPERTY (LANDFILL) 719 C-9 720 C-10 721 C-11 ACKNOWLEDGMENT OF NOTARY PUBLIC State of California ) ) SS. County of ____________ ) On_________________________ before me, ___________________________, Notary Public, personally appeared______________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) Notary Public A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 722 C-12 ACKNOWLEDGMENT OF NOTARY PUBLIC State of California ) ) SS. County of ____________ ) On_________________________ before me, ___________________________, Notary Public, personally appeared______________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) Notary Public A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 723 C-13 CITY OF MOORPARK Office of the City Clerk 799 Moorpark Ave. Moorpark, California 93021 CERTIFICATE OF ACCEPTANCE OF GRANT DEED (Govt. Code § 27281) (All of Assessor’s Parcel Number 500-0-281-465 and Portions of Assessor’s Parcel Numbers 500-0-281-545 & 500-0-292-195) This is to certify that the attached Grant Deed executed by Waste Management of California, Inc., a California corporation, which grants in fee to the City of Moorpark, a municipal corporation that certain Property described therein, consisting of Parcel 1 (129 acres) and Parcel 2 (1 acre), is hereby accepted under the authority of the City Council of the City of Moorpark and the City of Moorpark consents to the recordation thereof by its duly authorized officer. Dated: _____________, 2018 CITY OF MOORPARK, a municipal corporation By: _____________________________ Troy Brown, City Manager ATTEST: By: _____________________________ Maureen Benson, City Clerk APPROVED AS TO FORM: By: _____________________________ Kevin Ennis, City Attorney 724 D-1 EXHIBIT D REDACTED COPY OF OIL, GAS AND MINERAL LEASE 725 D-2 726 D-3 727 D-4 728 D-5 729 D-6 730 D-7 731 D-8 732 D-9 733 D-10 734 D-11 735 D-12 736 D-13 737 D-14 738 D-15 739 D-16 740 D-17 741 D-18 742 D-19 743 D-20 744 D-21 745 D-22 746 EXHIBIT D FORM OF SURFACE WAIVER AGREEMENT RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: California Resources Production Corporation c/o California Resources Petroleum Corporation 11109 River Run Boulevard Bakersfield, California 93311 Attention: Land Department with a Copy to: City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Attention: Office of the City Clerk SPACE ABOVE THIS LINE FOR RECORDER’S USE [X] All of APNs 500-0-292-015, 500-0-292-035 [X] Portions of 500-0-281-545 & 500-0-292-195 Document Transfer Tax: $0.00 This Instrument is for the benefit of the City of Moorpark and is exempt from Recording Fees (Gov’t. Code § 27383, Filing Fees (Gov’t. Code § 6103)(, and Documentary Transfer Tax (Rev. & Tax. Code § 11922) SURFACE WAIVER AGREEMENT This Surface Waiver Agreement (“Agreement”), dated _________________, 2018 (the “Effective Date”), is entered into by and between the City of Moorpark, a California municipal corporation (“City”) and California Resources Production Corporation, a Delaware corporation, as agent of and operator for its affiliate California Resources Petroleum Corporation, a Delaware corporation (“Mineral Owner”). The City and Mineral Owner are sometimes collectively referred to herein as the “Parties” and individually as “Party.” RECITALS A. WHEREAS, the City and Waste Management of California, Inc., a California corporation (“Waste Management”) and the City contemplate entering into an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (“Purchase Agreement”) whereby Waste Management intends to convey to the City that certain real property consisting of approximately 125 acres located in the City of Moorpark, County D-1 12853-0046\2193857v1.doc 747 of Ventura, California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference (“Property”). B. WHEREAS, Waste Management and the City also contemplate entering into a separate Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions whereby Waste Management intends to convey to the City approximately 130-acres of real property (“130-acre Property”) located adjacent to the Property and identified as all of Los Angeles County Tax Assessor’s Parcel Number (“APN”) 500-0-281-465 and portions of Assessor’s Parcel Numbers 500-0-281-545, 500-0-292-195, and the parties intend to enter into a separate Surface Waiver Agreement in connection with the 130-acre Property. C. WHEREAS, as part of the real property transaction for the Property, Waste Management intends to reserve its mineral interest in the Property. D. WHEREAS, the City intends to purchase the Property for public use, namely open space purposes, and all uses necessary or convenient thereto so that the City may, independently or jointly with the County of Ventura, operate and maintain a portion of the Property as a conservation easement in perpetuity while utilizing the remainder of the Property as functional land for the public. E. WHEREAS, a portion of the Property is subject to that certain Oil, Gas and Mineral Lease dated July 15, 2014 between Waste Management and California Resources Production Corporation, a Delaware corporation, as agent of and operator for its affiliate California Resources Petroleum Corporation, a Delaware corporation (previously registered as Vintage Production California LLC, a Delaware limited liability company) (“Lease”) and pursuant to said Lease, Mineral Owner either owns in fee an undivided interest in all or a portion of the oil, gas, and other minerals (sometimes collectively referred to as “minerals”) or has leased and wishes to continue leasing from Waste Management the mineral estate in that portion of the Property subject to the Lease described in Exhibit B attached hereto and incorporated herein by this reference. F. WHEREAS, in anticipation of the transfer of the Property, the City and Waste Management have requested that Mineral Owner waive its rights to use or occupy a portion of the surface of the Property and of the subsurface area located between the surface and five hundred feet (500’). G. WHEREAS, in exchange for express reservation of certain areas of the Property for current and future oil and gas operations, Mineral Owner agrees to waive and surrender its rights to use or occupy the remaining surface of the Property. H. WHEREAS, the parties intend that this Agreement will be recorded at the time that the Grant Deed that conveys the Property to the City is recorded in the Official Records of the County of Ventura. NOW, THEREFORE, in consideration of the promises and the mutual covenants set forth herein, and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: D-2 12853-0046\2193857v1.doc 748 TERMS OF AGREEMENT 1. Waiver of Surface Rights. 1.1 Waiver of Surface Rights. Mineral Owner permanently waives any and all rights Mineral Owner possesses to use the surface of the Property (i.e. from the ground surface to 500 feet below the ground surface) granted to Mineral Owner (or Mineral Owner’s predecessor in title) by Waste Management pursuant to the Lease or any other easements or rights granted to Mineral Owner (or Mineral Owner’s predecessor in title) no matter how or when or from whom such rights were obtained that may continue in force over said Property, except for and reserving the limited surface access and use rights provided in Section 2 of this Agreement. 1.2 Mineral Interest. Subject to Section 1.1 above, Mineral Owner specifically reserves any and all other rights and interest it has in the Property, whether via ownership or lease, including, but not limited to, the right to slant drill into, under, through or across the Property from such other lands other than the Property for the production of oil, gas, hydrocarbons, and other minerals from the Property 500 feet below the ground surface, in accordance with applicable laws. 1.3 Delivery of Documents. To give effect to the terms contained herein, the City and Mineral Owner shall execute, acknowledge and deliver, or obtain the execution, acknowledgment, and delivery of such further documents as provided in this Agreement. 1.4 Consent and Approval of Mineral Owner’s Operations. Without waiving any of its governmental rights or powers, including without limitation, land use and permit requirements, for itself and for its successors in interest, the City does hereby expressly consent to and approve (in its proprietary capacity as a Party to this Agreement) the exercise and enjoyment by Mineral Owner, its successors and assigns, of its said retained mineral rights and the rights appurtenant and incidental thereto, and the other easements and rights granted to Mineral Owner (or Mineral Owner’s predecessor in title) by Waste Management pursuant to the Lease or any other easements or rights granted to Mineral Owner (or Mineral Owner’s predecessor in title) no matter how or when or from whom such rights were obtained that may continue in force over said Property. 1.5 Confirmation of Mineral Rights. The City hereby recognizes and expressly confirms Mineral Owner’s mineral rights pursuant to the Lease as modified hereinabove, and nothing herein contained in this Agreement shall be deemed to be an abridgement or limitation thereof except insofar as the surface rights of entry appurtenant and incidental thereto have been hereinabove waived, and the City hereby agrees for itself, and its successors in interest, as a covenant running with the Property, which covenant is hereby created, never to contest the title of Waste Management or of Mineral Owner to said retained mineral rights, or to D-3 12853-0046\2193857v1.doc 749 offer any hindrance or obstruction to the exercise or enjoyment of the same by Mineral Owner. 2. Reserved Operations Area and Access Easement. 2.1 Exclusion of Reserved Operations area. Mineral Owner and City agree that a portion of the Property, as depicted on the map attached hereto as Exhibit C and described in Exhibit C-1, attached hereto and incorporated herein (the “Reserved Operations Area”), is excluded and reserved from this Agreement and shall continue to be used by Mineral Owner for its present and future operations, and will not be subject to any long-term conservation instrument recorded on the Property. Mineral Owner shall have the right to continue to exploit, explore for, develop, or produce minerals with wells drilled on the surface of the Reserved Operations Area or from locations outside of the Property. Mineral Owner further retains the right to exclude all others, including the City, from the Reserved Operations Area for safety reasons. If the City needs access to such designated areas, the City shall notify Mineral Owner in writing, and both shall agree on terms for temporary access, in a safe manner, that allows for the City’s necessary operations. 2.2 Grant of Access and Utility Easement. In addition to the appurtenant rights already possessed by Mineral Owner in connection with its mineral rights in the Property, the City grants to Mineral Owner a non-exclusive express easement over, under, upon, through, and across the area depicted in Exhibit C, and described in Exhibit C-2, attached hereto and incorporated herein (the “Access and Utility Easement”) for the purposes of access, ingress and egress to, from and over the Access and Utility Easement area and onto the Mineral Owner’s fee or leasehold for private utilities consisting of such pipeline and power line purposes as exist and may be necessary in association with Mineral Owners present or future use and operations over Mineral Owner’s fee or leasehold. Should inclement weather or natural phenomena render the Access and Utility Easement impassable or should there be a need for emergency access, Mineral Owner shall notify the City of such necessity and the Parties shall agree to a mutually acceptable temporary access route. Additionally, should the City and Mineral Owner deem it in the best interest of both Parties, an alternative route and positioning of the Access and Utility Easement may be identified and utilized should there be a mutual agreement among the Parties. 2.3 Use of Access and Utility Easement. The Access and Utility Easement shall only be used for such private utility purposes stated above and access to and from Mineral Owner’s fee or leasehold. Mineral Owner shall comply with all laws, rules, and orders of all federal, state, county and local governments or agencies that may be applicable to use of the roadway, including but not limited to, those applicable to the transportation of hazardous materials. 2.4 Reservation of Future Drill Site Operations Areas and Easements. If the City acquires the fee interest in the adjacent 130 Acres, the City agrees to grant to D-4 12853-0046\2193857v1.doc 750 Mineral Owner and Mineral Owner retains the right to exclusively utilize two (2) parcels of land (“Drill Sites”) located on the 130 Acres that shall be excluded from any long-term conservation agreement and may, at Mineral Owner’s sole discretion, be used as drill sites and for future operations of whatever nature with respect to the exploration for, exploitation of mining and production, processing, transporting and marketing of oil, gas and/or other minerals from Mineral Owner’s fee or leasehold or in connection with the conduct of other activities associated with the ownership of the oil, gas and mineral interests in the Property or surrounding fee or leasehold. Drill Sites shall each be limited to three (3) acres in size and shall be located as closely as reasonably possible surrounding the location center points identified as “Moorpark Pad A” and “Moorpark Pad B” on Exhibit D attached hereto and made a part hereof. It shall be stipulated, however, that no newly constructed Drill Site have a clear line of sight to Highway 118 as presently situated south of the Property. The City shall inform Mineral Owner of any contemplated non-temporary use of the Drill Sites by City prior to such use and Mineral Owner reserves the right to reject any such use of the Drill Sites that may materially and adversely impact Mineral Owner’s current or future use of the location(s). Contemporaneously, if the City acquires the fee interest in the adjacent 130 Acres, the City agrees to grant to Mineral Owner and Mineral Owner retains the right to a thirty foot (30’) wide non-exclusive right-of-way, pipeline and power line perpetual easement to and from each of the two (2) Drill Sites (“Reserved Easements”). Said Reserved Easements shall be located in the clearest, convenient and most reasonable location as determined by Mineral Owner for access by Mineral Owner to and from the Drill Sites, access roads and Mineral Owner’s infrastructure and facilities. Mineral Owner shall be allowed to temporarily exceed the size and width of the Drill Sites and Reserved Easements only for the time periods of actual construction and drilling operations. Mineral Owner shall be responsible for the permitting, construction and maintenance of any improvements related to its use of each Drill Site Area and Reserved Easements (the City shall bear any cost or expense of activities of the City or its designees, successors, tenants, assigns, successors-in-title, and mortgagees within the Property). Mineral Owner shall notify the City in writing as provided in Section 14 below of the location of the Reserved Easements prior to using said Reserved Easements. Mineral Owner shall also notify the City in writing prior to temporarily exceeding the size and width of the Drill Sites and Reserved Easement for the time periods of actual construction and drilling operations and provide the approximate size and width of the area required for such temporary use. Mineral Owner may, at any time, request that the City execute a separate, recordable document in a form agreeable to Mineral Owner memorializing the Drill Sites and/or the Reserved Easements. The City shall promptly deliver such document(s) to Mineral Owner. D-5 12853-0046\2193857v1.doc 751 2.5 Maintenance. Mineral Owner shall, at Mineral Owner’s own cost and expense, maintain the Reserved Operations Area, Access and Utilities Easement, Drill Sites and Reserved Easements (“Reserved Sites”) in essentially the same condition as it existed as of the date of this Agreement, subject to modifications necessary for Mineral Owner to conduct oil and gas operations. the City shall not be responsible for maintenance costs or maintenance of the Reserved Sites unless the City, its assigns or, by extension, the public jointly use the Reserved Sites in which case both the City and Mineral Owner will share in the maintenance cost proportionate to usage. 2.6 Duration. The rights granted by the City and the exceptions reserved by Mineral Owner are granted in perpetuity, shall run with and be appurtenant to Mineral Owner’s title to the minerals beneath the Property or Mineral Owner’s surrounding fee or leasehold and the rights reserved in over and upon the Reserved Sites. 2.7 Abandonment. Mineral Owner shall, at Mineral Owner’s own cost and expense, follow all applicable laws, including California Code of Regulations Title 14, sections 1700 et seq., for the plugging, abandonment and/or reclamation of any wells and associated structures located within the Reserved Sites. 2.8 Indemnification. (a) Indemnity by Mineral Owner. Subject to subsection 2.8(b) below, Mineral Owner agrees to release and does hereby defend and indemnify the City and each of its elected or appointed officials, council members, employees, servants, agents, attorneys, accountants, representatives, contractors, and consultants (the “City Parties”) from and against all claims, losses, liabilities, causes of action, demands, damages, suits, judgments, debts, costs, claims for payment, contribution or indemnity, expenses (including but not limited to attorneys’ fees and costs), fines, penalties, and liens of every kind and nature of any and every kind or nature (including, without limitation, claims and liability for, and damage and losses from death of or injury and damage to or destruction of any real or personal property whatsoever) (collectively referred to as “Claims”) arising out of or related to any previous, current, or future operations of Mineral Owner on or its predecessors on or about the Property, including without limitation releases of hazardous materials, including oil- and petroleum-based products. (b) Limitations on Mineral Owner’s Indemnity Obligations. Notwithstanding any other provision hereof, Mineral Owner shall not be obligated to indemnify the City Parties with respect to (i) any Claims to the extent that such Claims result from or arise out of the negligence or willful misconduct of any City Parties; and (ii) any Claims relating to bodily injury or property damage made prior to the date of this Agreement. City acknowledges that Mineral Owner’s operations pursuant to the Lease could result in a diminution of value of the Property and/or have an adverse impact on the marketing of the Property. D-6 12853-0046\2193857v1.doc 752 Notwithstanding anything herein to the contrary, Mineral Owner shall not be obligated to indemnify City for any Claims that are based on a diminution of value of the Property that arise due to Mineral Owner’s activities and operations pursuant to the Lease, so long as such activities and operations are or were in compliance with applicable laws and all of the terms and requirements of the Lease. (c) Indemnity by City. Subject to subsection 2.8(d) below, City agrees to release and does hereby defend and indemnify the Mineral Owner and each of its officers, employees, servants, agents, attorneys, accountants, representatives, contractors, and consultants (the “Mineral Owner Parties”) from and against all Claims arising out of or related to use of the Property by the City Parties or any of their invitees, licensees, including members of the public. (d) Limitations on City’s Indemnity Obligations. Notwithstanding any other provision hereof, City shall not be obligated to indemnify the Mineral Owner Parties with respect to (i) any Claims to the extent that such Claims result from or arise out of the negligence or willful misconduct of any Mineral Owner Parties; and (ii) any Claims relating to bodily injury or property damage made prior to the date of this Agreement. 3. Insurance. Mineral Owner shall name the City as a named additional insured on any insurance policies maintained by Mineral Owner related to the Property and Mineral Owner’s operations in connection with the Property. Mineral Owner shall maintain a policy of commercial general liability insurance issued by an insurer reasonably satisfactory to City covering the use by and activities of Mineral Owner with a single limit of liability (per occurrence and aggregate) of not less than $2,000,000. Mineral Owner shall deliver to City certificates of insurance and copies of additional insured endorsements naming City as named additional insured, evidencing that such insurance is in force and effect, and evidencing that City has been named as an additional insured thereunder with respect to the use and operations by Mineral Owner in connection with Mineral Owner’s fee or leasehold. Mineral Owner shall not cancel any such insurance policies without thirty (30) days written notice thereof directed to the City. 4. Cooperation by the City. The City agrees, in its proprietary capacity and as a party to this Agreement, to cooperate in good faith in the implementation of the rights and obligations of the parties to this Agreement. However, nothing contained herein shall impair or preclude the City’s exercise of its governmental rights and powers. 5. Cooperation by Mineral Owner. Mineral Owner agrees not to unreasonably object to, interfere with, protest, or oppose in any way the approvals, plans, or operations of the City at the Property. 6. Binding Effect. This Agreement shall be binding on all Parties and their heirs, successors, and assigns. 7. Mineral Leases and Production Agreements Subject Hereto. Any lease or production D-7 12853-0046\2193857v1.doc 753 agreement of oil, gas, and/or other minerals now on or hereafter covering the Property, or any portion thereof, shall be expressly made subject to the terms and provisions of this instrument. 8. Running with the Land. It is the intention of the Parties hereto that the rights and waiver of surface and subsurface rights herein established for the benefit of the City shall run with, and be appurtenant to, the Property, and shall be burdens upon the oil, gas, and other mineral interests held by Mineral Owner in and under the Property, shall run with such oil, gas, and other mineral interests, and shall bind Mineral Owner and its successors, tenants, assigns, successors- in-title, and mortgagees. Furthermore, it is the intention of the Parties hereto that the designated Reserved Operations Area (Exhibit C-1) and access easement (Exhibit C-2) herein established for the benefit of the Mineral Owner shall run with, and be appurtenant to, the Reserved Operations Area, and shall be burdens upon the surface estate held by the City, and shall bind the City and its successors, tenants, assigns, successors-in-title and mortgagees. 9. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter of this Agreement. There are no oral understandings, terms, or conditions, and neither Party has relied upon any representation, express or implied, not contained in this Agreement. 10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 11. Voluntary Agreement. The Parties represent that they have read this Agreement in full and understand and voluntarily agree to its provisions. The Parties further represent that they have, as of the date of execution of this Agreement, the legal authority and capacity to understand, agree to, and sign this Agreement on their own behalf and on the behalf of any entity for which they sign. The Parties further acknowledge and agree that they have been represented by competent legal counsel at all times relevant to this matter and have had an adequate opportunity to consult with and receive legal advice from said counsel prior to their signing of this Agreement. 12. Interpretation. The language of all parts of this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against any Party. 13. Attorneys’ Fees and Costs. Each Party shall bear its own attorneys’ fees and costs incurred prior to the effective date of this Agreement. If any legal action or proceeding arising out of or relating to this Agreement is brought by any Party to this Agreement, the prevailing Party will be entitled to receive from the other Party or Parties to such action or proceeding, in addition to any other relief that may be granted, the reasonable attorney’s fees, costs, and expenses incurred in the action or proceeding by the prevailing Party. 14. Notices. All notices or other documents to be provided pursuant to this Agreement shall be personally delivered, mailed by certified mail, postage prepaid, or sent via nationally- recognized overnight courier to the following addresses (or to such subsequent addresses provided in writing by the parties). Any changes to the below shall be made in writing delivered to the other Party pursuant to this Section: D-8 12853-0046\2193857v1.doc 754 (a) To City City of Moorpark 799 Moorpark Avenue Moorpark, California 93021 Attn: City Manager (b) To Mineral Owner California Resources Petroleum Corporation 11109 River Run Blvd. Bakersfield, CA 93311 Attn: Land Department 15. Severability. If any provision of this Agreement is held to be void, voidable, or unenforceable, the remaining portions of the Agreement shall remain in full force and effect. 16. Execution in Counterparts. This Agreement may be executed in counterparts, such that the signatures may appear on separate signature pages, and shall be deemed effective when all Parties have signed the Agreement or any counterpart thereof. A copy of an original, with all signatures appended together, shall be deemed a fully executed Agreement. 17. Modification and Amendment. This Agreement may not be modified or amended except in writing signed by all Parties. 18. Cooperation; Further Assurances. The Parties hereto shall take such actions, or execute, acknowledge and deliver, or obtain the execution, acknowledgment, and delivery of such further documents, as are reasonably necessary, appropriate or desirable to give effect to the terms of this Agreement, including documents incorporated with this Agreement and attached hereto. 19. Effect of Headings. The subject headings of the sections and paragraphs of this Agreement are included for purposes of convenience only, and shall have no effect on the meaning or the construction or interpretation of any of the provisions hereof. WHEREFORE, the undersigned execute this Agreement as follows: D-9 12853-0046\2193857v1.doc 755 Dated: __________________, 2018 CITY OF MOORPARK, a municipal corporation By: Janice S. Parvin, Mayor ATTEST: ____________________________________ Maureen Benson, City Clerk Approved as to form: By:_________________________________ Kevin Ennis, City Attorney Dated: __________________, 2018 Dated: __________________, 2018 CALIFORNIA RESOURCES PRODUCTION CORPORATION, a Delaware Corporation By: Title:________________________________ By: Title:________________________________ D-10 12853-0046\2193857v1.doc 756 EXHIBIT “A” LEGAL DESCRIPTION Being a portion of Parcel Map Waiver No. SD06-0072, in the City of Moorpark, County of Ventura, State of California, as recorded June 10, 2008, as Document No. 20080610-00091642 of Official Records of Ventura County, described as follows: Beginning at the intersection of the northerly line of State Highway 118, as described in the Final Order of Condemnation recorded August 7, 1975, as Instrument No. 52910 in Book 4443, Page 319 of Official Records of Ventura County, with the easterly boundary of the land described in the Grant Deed recorded December 16, 1963, as Instrument No. 74669 in Book 2446, Page 56 of Official Records of Ventura County; thence along said easterly boundary by the following two courses: 1st: North 12°10’45” West 177.58 feet; thence, 2nd: North 3°49’15” East 140.70 feet to the easterly terminus of the twenty-second course of Tract 8, as Described in the Notice of Lis Pendens recorded May 19, 1966, as Instrument No. 26184 in Book 2990, Page 214 of Official Records of Ventura County; thence along the easterly prolongation of said twenty-second course, 3rd: South 87°03’50” East 342.81 feet to the intersection with a line, passing through the northeasterly terminus of the second course of said Instrument No. 52910 and having a bearing of North 11°09’17” East; thence along said line, 4th: North 11°09’17” East 688.42 feet; thence, 5th: North 87°34’18” East 2141.98 feet; thence, 6th: South 16°21’23” East 294.33 feet; thence, 7th: South 58°41’11” East 178.06 feet; thence, 8th: North 46°41’00” East 605.51 feet; thence, 9th: North 79°31’02” East 1275.20 feet to the intersection with a line, passing through the southeasterly terminus of the ninety-ninth course of boundary of the City of Moorpark, as described in the Certificate of Completion recorded March 30, 1983, as Instrument No. 83-031119 of Official Records of Ventura County, said line having a bearing of North 77°15’24” West; thence along said line, 10th: South 77°15’24” East 554.96 feet to the southeasterly terminus of said ninety-ninth course; thence along the boundary of the City of Moorpark by the following eight courses: 11th: South 38°53’46” West 275.00 feet; thence, 12th: South 73°30’46” West 206.50 feet; thence, 13th: South 46°56’46” West 290.00 feet; thence, 14th: South 40°29’46” West 362.60 feet; thence, 15th: South 27°28’46” West 78.50 feet; thence, 16th: South 5°35’46” West 95.00 feet; thence, 17th: South 21°03’14” East 596.50 feet; thence, 18th: South 15°35’14” East 293.77 feet to the intersection with the northerly line of State Highway 118, as described in said Instrument No. 52910; thence along said northerly line by the following 23 courses: 19th: North 73°08’13” West 311.01 feet; thence, 20th: North 58°03’18” West 411.49 feet; thence, 21st: South 72°38’40” West 80.78 feet; thence, D-11 757 22nd: North 23°18’45” West 107.36 feet; thence, 23rd: South 88°31’52” West 179.58 feet; thence, 24th: North 14°04’00” East 167.97 feet; thence, 25th: North 68°18’29” West 157.16 feet; thence, 26th: South 58°27’11” West 244.51 feet; thence, 27th: South 31°46’57” East 148.21 feet; thence, 28th: South 54°26’11” West 436.21 feet; thence, 29th: North 53°12’25” West 177.55 feet; thence, 30th: South 82°18’20” West 526.78 feet; thence, 31st: North 89°20’12” West 215.47 feet; thence, 32nd: North 83°30’32” West 140.09 feet; thence, 33rd: South 76°47’44” West 115.43 feet; thence, 34th: North 56°29’10” West 125.85 feet; thence, 35th: North 87°45’13” West 405.89 feet; thence, 36th: North 71°16’05” West 500.75 feet; thence, 37th: North 22°21’13” West 219.67 feet; thence, 38th: North 41°24’09” West 247.96 feet; thence, 39th: South 76°09’58” West 313.48 feet; thence, 40th: South 43°16’43” West 265.26 feet; thence, 41st: North 63°17’49” West 114.12 feet to the point of beginning of this description. EXCEPTING THEREFROM that portion of said land, as described in the document recorded April 29, 1970, as Instrument No. 20543 in Book 3655, Page 306 of Official Records of Ventura County. Containing 125.00 acres, more or less. _______________________________________ Larry J. Frager, P.L.S. 7998 Date D-12 758 Exhibit “B” Legal Description of Portions of Property Subject to Lease in Favor of Mineral Owner [To Be Inserted] D-13 759 Exhibit “C” Map of Portions of Property Excluded and Reserved from Surface Waiver Agreement [To Be Inserted] D-14 760 Exhibit “C-1” General Description of Reserved Operations Area [To Be Inserted] D-15 761 Exhibit “C-2” Description of Non-Exclusive Access and Utility Easement [TO BE INSERTED] D-16 762 Exhibit “D” Depiction of Moorpark Pad A and Moorpark Pad B D-17 763 Acknowlegment A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) D-18 764 Acknowledgment A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) D-19 765 Acknowledgment A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ______________ ) On _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) D-20 766