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<br />STATE OF TEXAS
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<br />9
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<br />K1'\TOW ALL PERSONS BY THESE PRESENTS:
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<br />COUNTY OF HAYS
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<br />CONVEYANCE, ASSIGNMENT AND BILL OF SALE
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<br />This Conveyance, Assignment and Bill of Sale (this "Conveyance"), effective as of
<br />February ~, 2001 (the "Effective Date"), is from HA YS ENERGY LIMITED PARTNERSHIP,
<br />a Delaware limited partnership, whose mailing address is 10000 Memorial, Suite 500, Houston,
<br />Texas 77024 (herein called "Grantor"), and in favor of THE CITY OF SAN MARCOS, TEXAS,
<br />whose mailing address is 630 East Hopkins, San Marcos, Texas 78666 (herein called "Grantee").
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<br />ARTICLE I
<br />GRANTING AND HABENDUM CLAUSES
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<br />1.1 Granting and Habendum Clauses.
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<br />For good and valuable consideration, the receipt and sufficiency of which Grantor hereby
<br />acknowledges, Grantor hereby grants, conveys, bargains, assigns, transfers, delivers, and sets over
<br />unto Grantee, its successors and assigns, all right, title, interest and estate of Grantor in and to the
<br />following described property, to-wit:
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<br />(a) Easements. The easements, rights of way, surface rights, interests in land, permits,
<br />licenses and grants, and all amendments to each thereof used in connection with the operation ofthe
<br />Pipelines (as hereinafter defined), including, without limitation, those described on Exhibit A
<br />attached hereto, together with all prescriptive rights and all franchises, privileges, permits, grants,
<br />leases, and consents in favor of Grantor, or Grantor's predecessors in title, in, on, over and under
<br />lands, roads, highways, railroads, rivers, canals, ditches, bridges, public grounds or structures, or
<br />elsewhere, and all rights incident thereto, and permits and grants for the installation, maintenance,
<br />repair, removal and operation of the Pipelines (collectively, the "Easements" and singularly, the
<br />"Easement");
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<br />(b) Pipelines. The presently existing water supply and return pipelines located in, on,
<br />over, under or adjacent to the property described in (a) above, together with all buildings, structures,
<br />improvements, equipment and appurtenances of every kind or nature that are a part of, affixed to or
<br />used in connection therewith, including all meters, valves, gates, appliances, and all appurtenances
<br />and fixtures of every kind or nature whatsoever forming a part of said pipelines (collectively,
<br />together with additions or replacements, the "Pipelines" and singularly, the "Pipeline"); and
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<br />HOU:590942.3
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