02-1201_SAN JUAN BASIN AUTHORITY_Property Lease RECORDING REOUES7ED l3Y This Document was electronically recorded by
IRRST AMERICAN TITLE C0VP,4NY
SUSOMS40N DEPARTMENT First American Title
VESTED BY Recorded in Official Records, County of Orange
RECORDING REQUESTED ) Tom Daly,Clerk-Recorder
AND WHEN RECORDED MAIL TO: )
stradling Yocca Carlson & Rauth ) 1111111 1111111111111111111111111111111111111111111 NO FEE
660 Newport Center Drive, Suite 1600 ) 2003000021097 04:07pm 01/07/03
NewNewport Beach, California 92660 103 15 002 14
p ) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Attn: Denise E. Hering, Esq. )
}1�-7 -7 3 [Space above for Recorders use.]
}� 7 75 This document is recorded for the benefit of the City of San Juan
1};; 7 L- `7 7 Capistrano.and the recording is lee-exempt under Section 27383 of
the Government Code.
PROPERTY LEASE
By and Between
CITY OF SAN JUAN CAPISTRANO
and
SAN JUAN BASIN AUTHORITY
Dated as of December 1, 2002
Relating to
$31,555,000
SAN JUAN BASIN AUTHORITY
LEASE REVENUE BONDS
(GROUND WATER RECOVERY PROJECT)
ISSUE OF 2002
DOCSOC\909634v I I X22658.0017
PROPERTY LEASE
This Property Lease is dated as of December 1, 2002, by and between CITY OF SAN JUAN
CAPISTRANO, a municipal corporation, duly organized and existing under and by virtue of the laws
of the State, as lessor (the "City"), and the SAN JUAN BASIN AUTHORITY, a joint powers
authority, duly organized and existing under the laws of the State, as lessee (the "Authority").
WITNESSETH :
WHEREAS, the City has determined the public benefit and necessity therefor and has
entered into this Property Lease (the "Property Lease") with the Authority for the purpose of leasing
all of the City's interest in the real property constituting the Sites (as defined in the Service Contract)
(including all existing improvements thereon) described in Exhibit A hereto (collectively, the
"Property"), to the Authority, as lessee hereunder; and
WHEREAS, the Authority intends to lease the Property to the Capistrano Valley Water
District, a county water district (the "Water District"), pursuant to the terms of that certain Lease
Agreement, dated the date hereof, between the Authority and the Water District (the "Lease") in
order to obtain funds to finance the design, construction and installation of the ground water recovery
plant project known as the San Juan Basin Desalter Plant, which consists of the Project
Improvements (as defined in the Service Contract) (the "Service Contract Project Improvements");
and
WHEREAS, by resolution of the City Council, the City has agreed to execute this Property
Lease and to deliver it upon performance and compliance by the Authority of all terms or conditions
of this contract to be performed concurrently herewith, including without limitation, the delivery of
certain San Juan Basin Authority Lease Revenue Bonds (Ground Water Recovery Project) issue of
2002 (the "Bonds") pursuant to that certain Trust Agreement, dated as of the date hereof (the "Trust
Agreement"), among the Authority, the Water District and BNY Western Trust Company, as trustee
(the "Trustee");
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for
other valuable consideration, it is hereby mutually agreed as follows:
Section 1. Definitions. Unless the context otherwise requires, the capitalized terms herein
which are not defined herein shall have the meanings specified in the Trust Agreement or, if not
defined therein, in the Lease.
Section 2. Lease of the Property. The City hereby leases to the Authority, and the Authority
hereby leases from the City, the Property, on the terms and conditions hereinafter set forth.
Section 3. Term. The term of this Property Lease shall commence as of the Delivery Date for
the Bonds and shall remain in effect until the earlier of October 1, 2057 or the day following the date
of expiration or termination of the Operating Lease pursuant to its terms.
Section 4. Rental. The Authority, or any assignee or successor in interest of the Authority under
this Property Lease, shall pay upon execution and delivery of this Property Lease to the City as and
for rental hereunder, the amount of One Dollar and no/100 ($1.00), and shall pay to the Trustee the
amount required to be deposited in the Project Account of the Project Trust Fund pursuant to the
provisions of Section 4.2 of the Trust Agreement. Such amounts shall be disbursed in accordance
DOCSOC\909634v 11\22658.0017
with Section 4.2 of the Trust Agreement for the purpose of funding the Service Contract Project
Improvements (as defined in the Trust Agreement). As additional consideration for the leasing of the
Property to it, the Authority shall execute and deliver the Lease and the Trust Agreement and
perform its obligations thereunder. The Authority hereby waives any right that it may have under the
laws of the State of California to receive a rebate of any rent paid hereunder in full or in part in the
event there is a substantial interference with the use and right of possession by the Authority or its
sublessee of the Property or any portion thereof as a result of material damage, destruction or
condemnation.
Section 5. Purpose. The Authority shall lease the Property to the Water District pursuant to the
Lease for the purposes described in the Lease and for such purposes as may be incidental thereto.
Section 6. Installation of Water District's Personal Property. The Water District may, so long as
to do so is not reasonably expected to obstruct, delay, hinder or interfere with the development and
construction of the Project Improvements, at any time and from time to time, in its sole discretion
and at its own expense, install or permit to be installed items of equipment or other personal property
in or upon any portion of the Property. All such items, so long as such items do not constitute a part
of the Service Contract Project Improvements, shall remain the sole personal property of the Water
District, regardless of the manner in which the same may be affixed to such portion of the Property,
in which none of the Authority, the City (but only until such time as the Water District has merged
into the City) nor the Trustee shall have any interest, and may be modified or removed by the Water
District at any time; provided that the Water District shall repair and restore any and all damage to
such portion of the Property resulting from the installation, modification or removal of any such
items of equipment. Nothing in this Property Lease shall prevent the Water District from purchasing
items to be installed pursuant to this Section, provided that no lien or security interest attaching to
such items shall attach to any part of the Property, other than Permitted Encumbrances,
Section 7. Additions,_Modifications and Improvements. Subject only to applicable restrictions
and conditions of the Service Contract, and, so long as to do so is not reasonably expected to
obstruct, delay, hinder or interfere with the development and construction of the Project
Improvements, the Water District shall, at its own expense, have the right to make additions,
modifications or improvements to any portion of the Property if such additions, modifications or
improvements are necessary or beneficial for the use of such portion of the Property. Such additions,
modifications and improvements shall not in any way damage any portion of the Property or cause
them to be used for purposes other than those authorized under the provisions of state and federal law
or in any way which would impair the exclusion from gross income for federal income tax purposes
of the interest portion of the Lease Payments or diminish the value of the Property; and the Property,
upon completion of any additions, modifications and improvements made pursuant to this Section,
shall be of a value which is not less than the value of the Property immediately prior to the making of
such additions, modifications or improvements.
Section 8. Representations, Warranties and Covenants.
(a) The City represents and warrants as follows:
(i) Ownership. The City is the owner in fee of the Property.
(ii) Organization; Authorization; Enforceability. The City is a municipal
corporation duly created under the laws of the State and the laws of the State authorize the City to
enter into this Property Lease and to enter into the transactions contemplated by and to carry out its
2
DOCSOC\909634v 11\22658.0017
obligations under this Property Lease, and the City has duly authorized and executed this Property
Lease. This Property Lease constitutes the legal, valid and binding obligation of the City,
enforceable in accordance with its respective terms, except to the extent limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles affecting
the rights of creditors generally.
(iii) No Conflicts or Default; No Liens or Encumbrances. Neither the execution
and delivery of this Property Lease, nor the fulfillment of or compliance with the terms and
conditions hereof, nor the consummation of the transactions contemplated hereby. conflicts with or
results in a breach of the terms, conditions or provisions of any restriction or any agreement or
instrument to which the City is now a party or by which the City is bound, or constitutes a default
under any of the foregoing, or results in the creation or imposition of any lien, charge or
encumbrance whatsoever upon any of the property or assets of the City or upon the Project. except
for Permitted Encumbrances.
(iv) No Consent Required. There is no consent, approval, authorization or other
order of, or filing with, or certification by, any regulatory authority having jurisdiction over the City
required for the consummation by the City of the transactions contemplated by this Property Lease.
(v) No Litigation. There is no action, suit, proceeding, inquiry or investigation,
at law or in equity, before or by any court, governmental agency, public office or body, pending or
threatened against the City affecting the existence of the City or the titles of its officers to their
respective offices or seeking to prohibit, restrain or enjoin the City's ability to confer rights and
entitlements on the Authority as described herein or in any way contesting or affecting the validity or
enforceability of this Property Lease or contesting the powers of the City or its authority to enter into,
adopt or perform its obligations under this Property Lease or any amendment or supplement thereto,
wherein an unfavorable decision, ruling or finding would materially adversely affect this Property
Lease, or in which a final adverse decision could materially adversely affect the operations of the
City.
(vi) Lockout Provision. The City hereby accepts and agrees to be bound by the
lockout provisions of Section 6.4 of the Insurance and Indemnity Agreement affecting the rights of
the City, Water District and Authority in the event of a termination of the Lease Agreement pursuant
to the Lease Agreement, subject to the express terms of Section 6.4 of the Insurance and Indemnity
Agreement.
(b) The Authority covenants that it shall not encumber the Property except for Permitted
Encumbrances.
Section 9. Assignments. The City acknowledges and affirms the lease of the Property to the
Authority and the assignment by the Authority of its right, title and interest in and to the Property to
the Trustee, under the terms of the Trust Agreement among the Authority, the Water District and the
Trustee, for the benefit of the Owners of the Bonds. No other assignment of any rights hereunder
shall be permitted without the consent of the City, the Authority and the Trustee.
Section 10. Actions on Termination. The Authority agrees, upon the termination of this Property
Lease, to quit and surrender to the City the Property in the same good order and condition as it was in
at the time the real property then constituting the Property became subject to this Property Lease,
reasonable wear and tear excepted, provided that any permanent improvements and structures
existing upon the Property at the time of the termination of this Property Lease shall remain thereon
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DOCSOC\909634v 11\22658.0017
and all interest therein shall vest in the Authority free and clear of any interest of the City, except as
provided in the Operating Lease.
Section 11. Quiet Enjoyment. The Authority at all times during the term of this Property Lease
shall peaceably and quietly have, hold and enjoy all of the Property, subject only to Permitted
Encumbrances.
Section 12. Default. In the event the Authority shall be in default in the performance of any
obligation on its part to be performed under the terms of this Property Lease, which default continues
for 30 days following written notice to and demand for correction thereof by the City, the City may
exercise any and all remedies granted by law which do not adversely affect the interests of the
Owners of the Bonds, with the prior consent of the Trustee; provided that the City may not terminate
this Property Lease and shall exercise only remedies providing for specific performance hereunder.
Section 13. Taxes. The City covenants and agrees to pay any and all assessments and utility
charges of any kind or character and also all taxes, including possessory interest taxes, levied or
assessed upon the Property.
Section 14. Eminent Domain. In the event the whole or any part of the Property is taken by
eminent domain proceedings, the interest of the Authority shall be recognized and is hereby
determined to be the amount of unpaid Lease Payments and Additional Payments due the Authority
under the Lease.
Section 15. Partial Invalidity. If any one or more of the terms, provisions, covenants or
conditions of this Property Lease shall to any extent be declared invalid, unenforceable, void or
voidable for any reason whatsoever by a court of competent jurisdiction, the finding or order or
decree of which becomes final, none of the remaining terms, provisions, covenants and conditions of
this Property Lease shall be affected thereby, and each provision of this Property Lease shall be valid
and enforceable to the fullest extent permitted by law.
Section 16. Applicable Law. This Property Lease shall be governed by and construed in
accordance with the laws of the State.
Section 17. Representatives. Whenever under the provisions of this Property Lease the approval
of the Authority or the City is required, or the Authority or the City is required to take some action at
the request of the other, such approval or such request shall be given for the Authority by an
Authorized Representative of the Authority and for the City by an Authorized Representative of the
City and any party hereto shall be authorized to rely upon any such approval or request.
Section 18. Notices. All notices or other communications hereunder shall be sufficiently given
and shall be deemed to have been received five days after deposit in the United States mail in
registered or certified form, postage prepaid:
If to the City: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Attention: Treasurer
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DOCS00909634v 11\22658.0017
If to the Authority: San Juan Basin Authority
27500 La Paz Road
Laguna Niguel, CA 92677
Attention: Executive Director
If to the Trustee: BNY Western Trust Company
700 South Flower Street, Suite 500
Los Angeles, California 90017
Attention: Corporate Trust
The Authority, the City and the Trustee, by notice given hereunder, may designate different
addresses to which subsequent notices or other communications will be sent. The Authority and the
City agree to give the Trustee copies of all notices or other communications given to the other party
hereunder.
Section 19. Captions. The captions or headings in this Property Lease are for convenience only
and in no way define, limit or describe the scope or intent of any provision or section of this Property
Lease.
Section 20. Execution in Counterparts. This Property Lease may be executed in any number of
counterparts. each of which shall be deemed to be an original but all together shall constitute but one
and the same instrument.
Section 21. Amendment. The terms of this Property Lease shall not be waived, altered, modified,
supplemented or amended in any manner whatsoever, except by written instrument signed by the
Authority and the City, with the prior written consent of the Trustee and, so long as the Insurance
Policy is in effect and the Insurer is not in default thereunder, the Insurer.
5
POCSOC\909634v]1\22658.0017
IN WITNESS WHEREOF, the parties have caused this Property Lease to be executed by
their duly authorized officers on the date and year first above written.
CITY OF SAN JUAN CAPISTRANO s Lessor
By:
/ Mayo
ATTEST:
C' Cl rk
SAN JUAN BASIN AUTHORITY, as Lessee
By:
President of the Board of Directors
ATTEST:
Secretary of the Board of Directors
S-1
DOCSOC1909634v 10\22658.0017
PUBLIC AGENCY FORM OF ACKNOWLEDGEMENT
State of California )
County of Orange ) ss.
City of San Juan Capistrano )
(Gov't Code 40814 & Civil Code 118 1)
On ' % U t 7� before me, Magnet R. Monahan, City Clerk, personally appeared
John S. Gelff, personally known to me to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized capacity,and that by
his signature on the instrument the person, or the entity upon behalf of which the person acted,
executed the instrument.
(SEAL)
WITNESS my hand and official seal.
Margaret R. Monahan, City Clerk _
OPTIONAL
Capacity Claimed by Signers Description of Attached Document
Property Lease: City of San Juan Capistrano
Mayor & San Juan Basin Authority
Title or Type of Document
Title
5 plus signature & acknowledgement pages
Signers are Representing Number of Pages
City of San Juan Capistrano November 1, 2002
Date of Document
San Juan Basin Authority President of Board
Signer(s)Other Than Named Above
IN WITNESS WHEREOF, the parties have caused this Property Lease to be executed by
their duly authorized officers on the date and year first above written.
CITY OF SAN JUAN CAPISTRANO, as Lessor
By:
Mayor
ATTEST:
City Clerk
SAN JUAN BASIN AUTHORITY, as Lessee
By:
President of the oard of Directors
ATTEST:
Secretary of the Board of Directors
S-1
DOCS00909634v]0122658.0017
State of California )
ss.
County of Orange )
O&ID 2002, before me, b�fC
„name, title of officer, e.g., e Doe, NotaK-Public")
personally appeared
(name(s)of signer(s))
personally known to me, OR,
proved to me on the basis of satisfactory evidence to be the person(Jevwhose naTAC
I
subscribed to the within instrument and acknowledged to me that he/ xecuted the
sa a in his/h 1r authorized capacitoy ,-and that by his/h�ignature�Con the instrument
the person or the entity upon behalf which person cted, executed the instrument.
Witness my hand and official seal. //
"� (signature of notary)
LESLIE C. GRAY
Corrwnisaion#1365461
Notary Public-CalNornia fz
Orange Cou ft
My Comm.Fires Jul 19,2006
DOCSOC1909634v 1022658.0017
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
ORANGE, CITY OF SAN JUAN CAPISTRANO, DESCRIBED AS FOLLOWS:
PARCEL A (DANCE HALL):
LOT 1
THAT PORTION OF LOT 60 OF TRACT NO. 103, AS SHOWN ON A MAP RECORDED IN
BOOK 11, PAGES 29 THROUGH 33 INCLUSIVE, OF MISCELLANEOUS MAPS,
RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN BOOK 531,
PAGE 251 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY;
THENCE ALONG THE SOUTHERLY LINE OF SAID LAND SOUTH 87°55'30" EAST 92.80
FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID
SOUTHERLY LINE SOUTH 87°55'30" EAST 169.49 FEET; THENCE NORTH 2°26'44"
EAST 111.24 FEET; THENCE NORTH 87°33'16" WEST 108.59 FEET; THENCE NORTH
2030'44" EAST 127.34 FEET; THENCE NORTH 87°29'16" WEST 60.77 FEET; THENCE
SOUTH 2030'44"WEST 239.75 FEET TO THE TRUE POINT OF BEGINNING.
LOT 2
THAT PORTION OF LOT 60 OF TRACT NO. 103, AS SHOWN ON A MAP RECORDED IN
BOOK 11, PAGES 29 THROUGH 33 INCLUSIVE, OF MISCELLANEOUS MAPS,
RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN BOOK 531,
PAGE 251 OF DEEDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY;
THENCE ALONG THE WESTERLY LINE OF SAID LAND NORTH 2004'30" EAST 174.43
FEET; THENCE SOUTH 87°55'30" EAST 40.01 FEET TO THE TRUE POINT OF
BEGINNING; THENCE CONTINUING SOUTH 87055'30" EAST 30.00 FEET; THENCE
NORTH 2004'30" EAST 30.00 FEET; THENCE NORTH 87°55'30" WEST 30.00 FEET;
THENCE SOUTH 2004'30" WEST 30.00 FEET TO THE TRUE POINT OF BEGINNING.
PARCEL B (MARINER WELL SITE):
THAT PORTION OF LOT 1 OF FRACTIONAL SECTION 14, TOWNSHIP 8 SOUTH,
RANGE 8 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS FOLLOWS:
A 40.00 FOOT WIDE STRIP OF LAND, THE WESTERLY LINE OF WHICH IS
DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF LOT F OF TRACT NO. 7616 AS PER
MAP FILED IN BOOK 350, PAGES 1 THROUGH 5 OF MISCELLANEOUS MAPS IN THE
A-1
DOCSOC190963401122658.0017
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE
EASTERLY LINE OF SAID LOT F SOUTH 6046'00" WEST 61.06 FEET TO THE TRUE
POINT OF BEGINNING;THENCE CONTINUING ALONG SAID EASTERLY LINE SOUTH
6046'00" WEST 40.00 FEET.
PARCEL C (WELL NO. 1):
PARCEL B, AS SHOWN ON EXHIBIT "B" ATTACHED TO LOT LINE ADJUSTMENT NO.
02-15858-13 RECORDED NOVEMBER 15, 2002 AS INSTRUMENT NO. 2002001029016 OF
OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA.
EXCEPTING THEREFROM ALL OIL RIGHTS, MINERAL RIGHTS, NATURAL GAS
RIGHTS AND RIGHTS TO ALL OTHER HYDROCARBONS BY WHATSOEVER NAME
KNOWN TO ALL GEOTHERMAL HEAT AND TO ALL PRODUCTS DERIVED FROM
ANY OF THE FOREGOING AND THE PERPETUAL RIGHT OF DRILL, MINE, EXPLORE
AND OPERATE FOR AND TO PRODUCE, STORE AND REMOVE ANY OF THE
SUBSURFACE RESOURCES ON OR FROM THE LAND INCLUDING THE RIGHT TO
WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAT
THE LAND, WELLS, TUNNELS AND SHAFTS INTO THROUGH OR ACROSS THE
SUBSURFACE OF THE LAND AND TO BOTTOM SUCH WHIPSTOCKED OR
DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS WITHIN OR BEYOND
THE EXTERIOR LIMITS OF THE PROPERTY AND TO REDRILL, RETUNNEL, EQUIP,
MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES BUT
WITHOUT THE RIGHT TO DRILL, MINES, EXPLORE, OPERATE, PRODUCE, STORE OR
REMOVE ANY OF THE SUBSURFACE RESOURCES THROUGH OR IN THE SURFACE
OR THE UPPER FIVE HUNDRED FEET (500') OF THE SUBSURFACE OF THE LAND AS
RESERVED BY KB HOME COASTAL INC., A CALIFORNIA CORPORATION IN THE
DEED RECORDED JULY 9, 2002 AS INSTRUMENT NO. 20020569988 OF OFFICIAL
RECORDS.
PARCEL D (WELL NO. 2):
THOSE PORTIONS OF LOT B OF TRACT NO. 15998, IN THE CITY OF SAN JUAN
CAPISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN
BOOK 820, PAGES 42 THROUGH 47 OF MISCELLANEOUS MAPS IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY AND THE LAND SHOWN AS "NOT A
PART" WITHIN SAID LOT B ON SAID MAP, BEING A STRIP OF LAND, 20.00 FEET
WIDE, THE EASTERLY LINE OF WHICH IS DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF SAID LOT B; THENCE ALONG THE
EASTERLY LINE OF SAID LOT B SOUTH 00°20'50" WEST 95.00 FEET TO THE
SOUTHEAST CORNER OF SAID LOT B.
THE WESTERLY LINE OF SAID STRIP SHALL BE PROLONGED OR SHORTENED SO
AS TO COMMENCE AND TERMINATE IN THE NORTHERLY AND SOUTHERLY LINES
OF SAID LOT B.
A-2
DOCSOC1909634v]1122658.0017
A
PARCEL E (WELL NO.4):
LOT E OF TRACT NO. 15998 IN THE CITY OF SAN JUAN CAPISTRANO. COUNTY OF
ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 820. PAGES 42
THROUGH 47 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
EXCEPTING THEREFROM,THE SOUTHEASTERLY 15.00 FEET OF SAID LOT.
PARCEL F (KINOSHITA):
BEGINNING AT THE NORTHEAST CORNER OF TRACT NO. 11086, AS PER MAP FILED
IN BOOK 479, PAGES 26 TO 31 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE CENTERLINE OF
CAMINO DEL AVION NORTH 88045'27" WEST 28.52 FEET; THENCE NORTH 00°48'04"
WEST TO A POINT WHICH IS 1.00 FOOT NORTHERLY OF THE CENTERLINE OF
CAMINO DEL AVION, MEASURED AT RIGHT ANGLES AND 28.50 FEET WESTERLY
OF THE EASTERLY CENTERLINE OF ALIPAZ STREET MEASURED AT RIGHT
ANGLES, AS SHOWN ON SAID MAP, SAID POINT BEING THE TRUE POINT OF
BEGINNING; THENCE PARALLEL WITH THE CENTERLINE OF SAID CAMINO DEL
AVION NORTH 88°45'27" WEST 40.00 FEET; THENCE NORTH 25°52'46" EAST 89.03
FEET TO A POINT WHICH IS 28.50 FEET WESTERLY OF THE EASTERLY
CENTERLINE OF SAID ALIPAZ STREET, MEASURED AT RIGHT ANGLES; THENCE
PARALLEL WITH SAID EASTERLY CENTERLINE SOUTH 00048'04" EAST 80.97 FEET
TO THE TRUE POINT OF BEGINNING.
PARCEL G: (TIRADOR):
THAT PORTION OF LOT 31 OF TRACT NO. 103 IN THE CITY OF SAN JUAN
CAPISTRANO, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN
BOOK 11, PAGES 29 THROUGH 33 OF MISCELLANEOUS MAPS IN THE OFFICE OF
THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST EASTERLY CORNER OF SAID LOT 31; THENCE ALONG
THE NORTHERLY LINE OF SAID LOT NORTH 89°02'56" WEST 127.69 FEET TO A
POINT THAT IS 40.00 FEET SOUTHEASTERLY MEASURED AT RIGHT ANGLES FROM
THE CENTERLINE OF PASEO TIRADOR AS SHOWN ON THE AMENDED DIAGRAM
OF ASSESSMENT DISTRICT NO. 78-3 FILED IN BOOK 19, PAGES 14 THROUGH 22 OF
ASSESSMENT MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY;
THENCE PARALLEL WITH SAID CENTERLINE SOUTH 47054'43" WEST 43.95 FEET TO
THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 47°54'43" WEST
40.00 FEET; THENCE SOUTH 42'05'17" EAST 40.00 FEET; THENCE NORTH 47°54'43"
EAST 40.00 FEET; THENCE NORTH 42'05'17" WEST 40.00 FEET TO THE TRUE POINT
OF BEGINNING.
EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS,
NATURAL GAS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY
WHATSOEVER NAME KNOWN THAT MAY BE WITHIN OR UNDER THE PARCEL OF
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DOCSOC1909634v 11\22658.0017
LAND HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF
DRILLING, MINING, EXPLORING, AND OPERATING THEREFOR, AND REMOVING
THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO
WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN
THOSE HEREINABOVE DESCRIBED, OIL OR GAS WELLS, TUNNELS AND SHAFTS
INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE
DESCRIBED, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED
WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE
EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN,
REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, WITHOUT,
HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE
THROUGH THE SURFACE OR THE UPPER 100 FEET OF THE SUBSURFACE OF THE
LAND HEREINABOVE DESCRIBED OR OTHERWISE IN SUCH MANNER AS TO
ENDANGER THE SAFETY OF ANY HIGHWAY THAT MAY BE CONSTRUCTED ON
SAID LAND, AS RESERVED IN THE DEED FROM CARL L. STROSCHEIN AND
OTHERS, RECORDED FEBRUARY 15, 1955 IN BOOK 2959, PAGE 307 OF OFFICIAL
RECORDS.
A-4
DOCSOC\909634v I]122658.0017