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HomeMy WebLinkAboutResolution - 4962 - Letter Agreement - DG & EE Inc - Geophysical Survey, Near Lake Alan Henry - 09_28_1995Resolution No. 4962 September 28, 1995 Item #12 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Letter Agreement with Dawson Geophysical and Enserch Exploration, Inc. permitting a geophysical survey in the vicinity of Lake Alan Henry, attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: Betty MY Johnson, Cyty Secretary APPROVED AS TO CONTENT: TerfIrEllerbro9k, Director of Water Utilities APPROVED AS TO FORM: JES:js/A-DAWSONAES ccdocs/September 19, 1995 ENSERCH EXPLORAT/ONINc 4849 Greenville Ave., Suite 1200 Dallas, Texas 75206 September 25, 1995 City of Lubbock, Texas P.O. Box 2000 Lubbock, Texas 79457-2000 Gentlemen: Legal Department Frank H. Pope, Jr. Senior Attorney Telephone: (214) 987-7844 Facsimile: (214) 987-6664 Pager: (214) 786-6389 Dawson Geophysical, a Midland based Geophysical Contractor, requests permission from the City of Lubbock to conduct a 3-D Vibroseis seismic survey across certain lands owned by the City of Lubbock in Garza County, Texas. These lands are shown on the attached Exhibit 1. Dawson Geophysical, the geophysical contractor, with many years in the industry, is conducting this survey for Enserch Exploration, Inc., a Dallas based oil and gas exploration company whose stock is listed on the New York Exchange. A brief summary of both companies is attached in Exhibit 2. The 3-D Vibroseis survey consists of placing several hundred geophones (seismic detection devices) at surveyed locations on the surface of the ground. These geophone stations or receiver locations are all connected by cables to a recording truck which records on magnetic tape the measurements from these geophone stations. A non -explosive, hydraulic energy source, coupled with what is referred to as a Vibroseis unit is used as a seismic source for the survey. These Vibroseis units use a flat plate approximately 8' x 4' in size, which makes contact with the ground and is then vibrated at a range of frequencies (typically 12-110 Hertz). Impact is minimal, with Vibroseis units used to acquire hundreds of seismic surveys in West Texas covering thousands of miles. These units have been used to operate in close proximity to roads, buildings, water wells, oil wells and pipelines with no damages or ill effects. The Vibroseis source is also preferable to an explosive source since no drilling into the subsurface is done, eliminating the possibility of ground water contamination and eliminating the necessity for plugging and filling shot holes. In return for the granting of this permit, Dawson Geophysical and Enserch Exploration, Inc, agree to provide the following to the City of Lubbock: 1. Geophysical operations will be conducted in accordance with safe and standard industry practices and in a prudent and careful manner. Dawson agrees to provide proof of September 25, 1995 Page 2 insurance and hold the City harmless from all liability for surface damages including damages to archeological sites, or claims of others including its own employees and subcontractors, which may result from our operations on your property. As a member of the IAGC (International Association of Geophysical Contractors), Dawson strives to perform all geophysical work in accordance with IAGC guidelines and at the highest industry standards. 2. Dawson and Enserch will provide the City of Lubbock with a work plan outlining the specific work to be performed on the property. Work areas will be open to authorized city personnel. It is requested that City of Lubbock personnel notify Dawson Geophysical prior to visiting the seismic operation and follow all safety guidelines. 3. Prior to the start of surveying, Dawson Geophysical will conduct a pre -work meeting with the designated representatives of the City of Lubbock where all questions or concerns can be addressed. This meeting will be attended by a representative from Enserch, and the following Dawson supervisory employees: a field supervisor, lead surveyor, and a permit agent. 4. Coordinate and conduct all necessary archeological surveys as may be required by the Texas Historical Commission. This survey will be for the purpose of identifying sites and avoiding disturbance of any sites by the geophysical operation. Dawson and Enserch agree not to disturb, excavate or tamper with any significant sites as defined by the Archeologist and guidelines from the Texas Historical Commission. All reports and maps showing location of sites will be kept confidential. Use of existing roads and trails shall not constitute disturbance of an existing site. If requested, Dawson and Enserch will provide at no cost to the City of Lubbock one copy of all archeological reports prepared as a result of this survey. This report will be delivered to the City or its designated representative. 5. No seismograph surveys or Vibroseis trucks will be located within two miles of the Alan Henry Dam. Within this area, all vehicles, other than the Vibroseis trucks will remain on existing roads or trails. There is no known instance of damage to a dam that arose from a normal Vibroseis seismic survey located 2-3 miles away. Enserch will hire Vibra-Tech Engineers, a well qualified, independent consulting firm, to conduct field tests to measure particle motion at 1/4, 1/2 and 1 mile intervals from the Vibroseis source. Additional testing will be done, prior to commencing operations, if requested by the City of Engineers' office. 6. No earth moving equipment will be used within 100' of 2245' contour. Any brush removal or earth moving equipment used around the 2220' contour (in the river bottom) shall be done with prior approval from the City of Lubbock. September 28, 1995 Page 3 and B. of this agreement shall be deemed full complete payment for the seismic permits necessary to this survey. In addition to the above payment, the following data will be given or access provided to the City to aid in its development of this property. A. All survey data gathered from the geophysical survey. This will include a map showing the location of all GPS points and all cultural features surveyed and all data in a digital format. B. Enserch will make available in its offices, during regular office hours and as work stations are available, to the City of Lubbock, or its designated representative, the seismic data within and 1/4 mile around the lands described as: Sections 115 & 137, Block 5, H.& G.N. RR. Co. Survey, Garza County, Texas and Section 4, Block 6, H.&G.N. RR. Co. Survey, Garza County, Texas. This data will be considered confidential and proprietary to Enserch Exploration, Inc.. The data may be used to construct geologic or geophysical maps. These maps are for the City of Lubbock's own internal use and may not be copied or shown to third parties, other than for purposes of litigation with appropriate confidentiality agreements or orders, and the employees of the City or contractors and consultants employed by the City. Neither Dawson nor Enserch warrants accuracy of the seismic data or any interpretation resulting from the use of the 3-D seismic data. Enserch will notify the City within forty-five days of its obtaining the 3-1) data in processed form. 8. As a final condition, Enserch, its representatives and assigns agree not to drill any oil and gas wells within 150' of the Sam Wahl recreation area, or at an elevation below 2,245' in the area adjacent to Lake Alan Henry, that all surface equipment shall be located at elevations greater than 2,245' and all work shall be performed in a manner not to jeopardize any potable water located in the lake. If these terms are acceptable, please sign and return this agreement to Dawson Geophysical. If you have any questions, please contact Dawson Geophysical at 1-800- 332-9766 or Enserch Exploration, Inc. at 1-800-725-1123. Eo l m wr Dawson Geophysical, Enserch Exploration, Inc. September 25, 1995 Page 4 EXECUTED this day of September, 1995. ATTEST: 9'tt'- M- (--,, 4k, tty Johnson, C' y Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: Notts, Jr., Trial Attorney EXHIBIT 2* Enserch Exploration, Inc., is an independent natural gas and oil exploration and production company. It is listed on the New York Stock Exchange amd had pro forma operating income of $34 million during 1994. Its year-end proved natural gas reserves as determined by DeGolyer & MacNaughton, independent petroleum consultants, were 1.04 Tcf with 46 MMbls of condensate. Enserch Exploration, Inc. explores for, develops and produces natural gas and crude oil in many areas thoughout the United States. Its domestic operations are concentrated in Texas, the Gulf of Mexico, Alabama, Louisiana, Mississippi, Oklahoma and the Rocky Mountains area. Enserch Exploration, Inc. operates over 600 oil and gas wells in Texas. The company's history dates back to the early 1900s and it has been conducting business under the Enserch Exploration, Inc. name since the mid-'70s. Enserch Exploration, Inc. has been active in 3-D seismic work since the inception of the technology and has shot or acquired over 280 square miles of 3-D seismic in Hardeman and Shackelford Counties alone. In an effort to develop new technology, Enserch Exploration, Inc. has joined with the Los Alamos National Laboratory to in research to develop instrumentation to verify the extent of sub- surface hydraulic fracture stimulation of producing wells. This technology holds great promise for the oil and gas industry and the maximization of domestic reserves of oil and gas. *From the 1993 Facts & Figures publication of ENSERCH Corporation and the 1995 Annual Report of Enserch Exploration, Inc. EXHIBIT 3 DAWSON GEOPHYSICAL COMPANY Founded in 1952, Dawson Geophysical Company acquires and processes seismic data used in the exploration for and development and field management of oil and natural gas reserves. In 1989, Dawson Geophysical Company began converting its operations from the traditional two- dimensional ("2-D") seismic method to the more technologically advanced three-dimensional ("3-D") seismic method. Since fiscal 1990, Dawson Geophysical Company has spent approximately $26 million to acquire new 3-D telemetry recording systems and associated equipment. Dawson's operations consist primarily of five 3-D seismic data acquisition crews and a seismic data processing center. As a result of an increase in industry -wide demand for its 3-D seismic surveys and Dawson's competitive positioning, the Company is continuing to experience an increase in demand for its 3-D seismic services. During fiscal 1994, substantially all of Dawson's revenues were derived from 3-D seismic operations. Dawson's land -based data acquisition crews operate primarily in the southwestern United States. Data processing is performed by Dawson geophysicists at the Company's computer center in Midland, Texas. Dawson acquires and processes data only for its clients, ranging from major oil and gas companies to independent oil and gas operators, who retain exclusive rights to the information obtained. As compared to the 2-D seismic method, the 3-D seismic method provides an immense volume of more precise information to the oil and gas industry. Improved subsurface resolution from 3-D seismic data enhances the exploration for new reserves and enables oil and gas companies to better delineate existing fields and to augment their reservoir management techniques. This diversification of applications has reduced to a certain extent Dawson's dependence on the level of expenditures for oil and gas exploration. Potential benefits of incorporating 3-D technology into exploration and development programs include a decrease in oil and gas finding costs, a reduction of drilling risk and increased efficiencies in reservoir location, delineation and management. Dawson Geophysical Company believes that it maintains a competitive advantage in the industry by (i) continually updating its equipment to take advantage of advances in geophysical technology, (ii) maintaining skilled and experienced personnel for its data acquisition and processing operations, (iii) focusing its operations on the domestic onshore seismic industry, and (iv) providing integrated in-house operations necessary to complete 3-D seismic projects for its clients, including the related 3-1) seismic survey design, permitting, surveying, acquisition and processing functions. The headquarters of Dawson Geophysical Company, a Texas corporation, are located at 208 South Marienfeld, Midland, Texas 79701, and its telephone number is (915) 682-7356. September 19, 1995 City of Lubbock, Texas P.O. Box 2000 Lubbock, Texas 79457-2000 Gentlemen: Dawson Geophysical, a Midland based Geophysical Contractor, requests permission from the City of Lubbock to conduct a 3-D Vibroseis seismic survey across certain lands owned by the City of Lubbock in Garza County, Texas. These lands are shown on the attached Exhibit 1. Dawson Geophysical, the geophysical contractor, with many years in the industry, is conducting this survey for Enserch Exploration, Inc., a Dallas based oil and gas exploration company whose stock is listed on the New York Exchange. A brief summary of both companies is attached in Exhibit 2. The 3-D Vibroseis survey consists of placing several hundred geophoncs (seismic detection devices) at surveyed locations on the surface of the ground. These geophone stations or receiver locations are all connected by cables to a recording truck which records on magnetic tape the measurements from these geophone stations. A non -explosive, hydraulic energy source, coupled with what is refereed to as a Vibroseis unit is used as a seismic source for the survey. These Vibroseis units use a flat plate approximately 9' x 4' in size, which makes contact with the ground and is then vibrated at a range of frequencies (typically 12-110 Hertz). Impact is minimal, with Vibroseis units used to acquire hundreds of seismic surveys in West Texas covering thousands of miles. These units have bxn used to operate in close proximity to roads, buildings, water wells, oil wells and pipelines with no damages or ill effects. The Vibroseis source is also preferable to an explosive source since no drilling into the subsurface is dome, eliminating the possibility of ground water contamination and eliminating the necessity for plugging and filling shot holes. In return for the granting of this permit, Dawson Geophysical and Enserch Exploration, Inc, agree to provide the following to the City of Lubbock- September 19. 1995 Page 2 Geophysical operations will be conducted in accordance with safe and standard industry practices and in a prudent and careful manner. Dawson agrees to provide proof of insurance and hold the City harmless from all liability for surface damages including damages to archeological sites, or claims of others including its own employees and subcontractors, which may result from our operations on your property. As a member of the IAGC (International Association of Geophysical Contractors), Dawson strives to perform all geophysical work in accordance with IAGC guidelines and at the highest industry standards. 2. Dawson and Enserch will provide the City of Lubbock with a work plan outlining the specific work to be performed on the property. Work areas will be open to authorized city personnel. It is requested that City of Lubbock personnel notify Dawson Geophysical prior to visiting the seismic operation and follow all safety guidelines. 3. Prior to the start of surveying, Dawson Geophysical will conduct a pre -work meeting with the designated representatives of the City of Lubbock where all questions or concerns can be addressed. This meeting will be attended by a representative from Enserch, and the following Dawson supervisory employees: a field supervisor, lead surveyor, and a permit agent. 4. Coordinate and conduct all necessary archeological surveys as may be required by the Texas Historical Commission This survey will be for the purpose of identifying sites and avoiding disturbance of any sites by the geophysical operation. Dawson and Enserch agree not to disturb, excavate or tamper with any significant sites as defined by the Archeologist and guidelines from the Texas Historical Commission. All reports and maps showing location of sites will be kept confidential. Use of existing roads and trails shall not constitute disturbance of an existing site. If requested, Dawson and Enserch will provide at no cost to the City of Lubbock one copy of all archeological reports prepared as a result of this survey. This report will be delivered to the City or its designated representative. 3 No seismograph surveys or Vibroscis trucks will be located within two miles of the Alan Henry Dam. Within this area, all vehicles, other than the Vibrosei.s trucks will remain on existing roads or trails. There is no known instance of damage to a dam that arose from a normal Vibroscis seismic survey located 2-3 miles away. Enserch will hire Vibra- Tech Engineers, a well qualified, independent consulting firm, to conduct field tests to measure particle motion at 1/4, 1!2 and 1 mile intervals from the Vibroscis source. Additional testing will be done, prior to commencing operations, if requested by the City of Engineers' office. 6. No earth moving equipment will be used within 100' of 2245' contour. Any brush removal or earth moving equipment used around the 2220' contour (in the river bottom) shall be done with prior approval from the City of Lubbock. September 19. 1995 Page 3 7. Dawson and the City of Lubbock agree that the information supplied under sections A. and B. of this agreement shall be deemed full complete payment for the seismic permits necessary to this survey. In addition to the above payment, the following data will be given or access provided to the City to aid in its development of this property. A. All survey data gathered from the geophysical survey. This will include a map showing the location of all GPS points and all cultural features surveyed and all data in a digital format. B. Enserch will make available in its offices, during regular office hours and as work stations are available, to the City of Lubbock, or its designated representative, the seismic data within and 1/4 mile around the lands described as: Sections 115 & 137, Block 5, H.& G.N. RR_ Co. Survey, Garza County, Texas and Section 4, Block 6, H.&G.N. RR. Co. Survey, Garza County, Texas. This data will be considered confidential and proprietary to Enserch Exploration, Inc.. The data may be used to construct geologic or geophysical maps. These maps are for the City of Lubbock's own internal use and may not be copied or shown to third parties, other than for purposes of litigation with appropriate confidentiality agreements or orders, and the employees of the City or contractors and consultants employed by the City_ Neither Dawson nor Enserch warrants accuracy of the seismic data or any interpretation resulting from the use of the 3-D seismic data. Enserch will notify the City within forty-five days of its obtaining the 3-D data in processed form 8. As a final condition, should Enserch and or its representatives propose to drill any oil and gas wells within 150' of the Sam Wahl recreation area, all surface equipment shall be located at elevations greater than 2,245' and all work shall be performed in a manner not to jeopardize any potable water located in the lake. If these terms are acceptable, please sign and return this agreement to Damson Geophysical. If you have any questions, please contact Dawson Geophysical at 1-800- 332-9766 or Enserch Exploration, Inc. at 1-900-725-1123. Dawson Geophysical September 19. 1995 Page 4 J B. Camp, Director Mid -Continent Region Enserch Exploration, Inc. EXECUTED this 2LIjiday of September, 1995. CITY OF LUBBOCK DAVTO R. LANGSTON, MAYOR ATTEST: Betty Johnson, City Secretary APPROVED AS TO CONTENT. f2l r� T Terry Ellerbrook, Director of :dater Utilities APPROVED AS TO FORM: can Shotts, Jr., Trial Attorney j Resolution No. 4962 September 28, 1995 Item #12 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Letter Agreement with Dawson Geophysical and Enserch Exploration, Inc. permitting a geophysical survey in the vicinity of Lake Alan Henry, attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this ATTEST: &,ti,- )k Q)r4," Betty NVAohnson, CVty Secretary APPROVED AS TO CONTENT: Tllerbrogk, Direc or o Water Utili ies APPROVED AS TO FORM: ' e o �r, RialAt�tome I �i JES.is/A-DAWSON.RES ccdocs/September 19, 1995 ENSERCH EXPLORAT/ONINC 4849 Greenville Ave., Suite 1200 Dallas, Texas 75206 September 25, 1995 City of Lubbock, Texas P.O. Box 2000 Lubbock, Texas 79457-2000 Gentlemen: Legal Department Frank H. Pope, Jr. Senior Attorney Telephone: (214) 987-7844 Facsimile: (214) 987-6664 Pager: (214) 786-6389 Dawson Geophysical, a Midland based Geophysical Contractor, requests permission from the City of Lubbock to conduct a 3-D Vibroseis seismic survey across certain lands owned by the City of Lubbock in Garza County, Texas. These lands are shown on the attached Exhibit 1. Dawson Geophysical, the geophysical contractor, with many years in the industry, is conducting this survey for Enserch Exploration, Inc., a Dallas based oil and gas exploration company whose stock is listed on the New York Exchange. A brief summary of both companies is attached in Exhibit 2. The 3-D Vibroseis survey consists of placing several hundred geophones (seismic detection devices) at surveyed locations on the surface of the ground. These geophone stations or receiver locations are all connected by cables to a recording truck which records on magnetic tape the measurements from these geophone stations. A non -explosive, hydraulic energy source, coupled with what is referred to as a Vibroseis unit is used as a seismic source for the survey. These Vibroseis units use a flat plate approximately 8' x 4' in size, which makes contact with the ground and is then vibrated at a range of frequencies (typically 12-110 Hertz). Impact is minimal, with Vibroseis units used to acquire hundreds of seismic surveys in West Texas covering thousands of miles. These units have been used to operate in close proximity to roads, buildings, water wells, oil wells and pipelines with no damages or ill effects. The Vibroseis source is also preferable to an explosive source since no drilling into the subsurface is done, eliminating the possibility of ground water contamination and eliminating the necessity for plugging and filling shot holes. In return for the granting of this permit, Dawson Geophysical and Enserch Exploration, Inc, agree to provide the following to the City of Lubbock: 1. Geophysical operations will be conducted in accordance with safe and standard industry practices and in a prudent and careful manner. Dawson agrees to provide proof of September 25, 1995 Page 2 insurance and hold the City harmless from all liability for surface damages including damages to archeological sites, or claims of others including its own employees and subcontractors, which may result from our operations on your property. As a member of the IAGC (International Association of Geophysical Contractors), Dawson strives to perform all geophysical work in accordance with IAGC guidelines and at the highest industry standards. 2. Dawson and Enserch will provide the City of Lubbock with a work plan outlining the specific work to be performed on the property. Work areas will be open to authorized city personnel. It is requested that City of Lubbock personnel notify Dawson Geophysical prior to visiting the seismic operation and follow all safety guidelines. 3. Prior to the start of surveying, Dawson Geophysical will conduct a pre -work meeting with the designated representatives of the City of Lubbock where all questions or concerns can be addressed. This meeting will be attended by a representative from Enserch, and the following Dawson supervisory employees: a field supervisor, lead surveyor, and a permit agent. 4. Coordinate and conduct all necessary archeological surveys as may be required by the Texas Historical Commission. This survey will be for the purpose of identifying sites and avoiding disturbance of any sites by the geophysical operation. Dawson and Enserch agree not to disturb, excavate or tamper with any significant sites as defined by the Archeologist and guidelines from the Texas Historical Commission. All reports and maps showing location of sites will be kept confidential. Use of existing roads and trails shall not constitute disturbance of an existing site. If requested, Dawson and Enserch will provide at no cost to the City of Lubbock one copy of all archeological reports prepared as a result of this survey. This report will be delivered to the City or its designated representative. 5. No seismograph surveys or Vibroseis trucks will be located within two miles of the Alan Henry Dam. Within this area, all vehicles, other than the Vibroseis trucks will remain on existing roads or trails. There is no known instance of damage to a dam that arose from a normal Vibroseis seismic survey located 2-3 miles away. Enserch will hire Vibra-Tech Engineers, a well qualified, independent consulting firm, to conduct field tests to measure particle motion at 1/4, 1/2 and 1 mile intervals from the Vibroseis source. Additional testing will be done, prior to commencing operations, if requested by the City of Engineers' office. 6. No earth moving equipment will be used within 100' of 2245' contour. Any brush removal or earth moving equipment used around the 2220' contour (in the river bottom) shall be done with prior approval from the City of Lubbock. September 28, 1995 Page 3 and B. of this agreement shall be deemed full complete payment for the seismic permits necessary to this survey. In addition to the above payment, the following data will be given or access provided to the City to aid in its development of this property. A. All survey data gathered from the geophysical survey. This will include a map showing the location of all GPS points and all cultural features surveyed and all data in a digital format. B. Enserch will make available in its offices, during regular office hours and as work stations are available, to the City of Lubbock, or its designated representative, the seismic data within and 1/4 mile around the lands described as: Sections 115 & 137, Block 5, H.& G.N. RR. Co. Survey, Garza County, Texas and Section 4, Block 6, H.&G.N. RR. Co. Survey, Garza County, Texas. This data will be considered confidential and proprietary to Enserch Exploration, Inc.. The data may be used to construct geologic or geophysical maps. These maps are for the City of Lubbock's own internal use and may not be copied or shown to third parties, other than for purposes of litigation with appropriate confidentiality agreements or orders, and the employees of the City or contractors and consultants employed by the City. Neither Dawson nor Enserch warrants accuracy of the seismic data or any interpretation resulting from the use of the 3-D seismic data. Enserch will notify the City within forty-five days of its obtaining the 3-D data in processed form. 8. As a final condition, Enserch, its representatives and assigns agree not to drill any oil and gas wells within 150' of the Sam Wahl recreation area, or at an elevation below 2,245' in the area adjacent to Lake Alan Henry, that all surface equipment shall be located at elevations greater than 2,245' and all work shall be performed in a manner not to jeopardize any potable water located in the lake. If these terms are acceptable, please sign and return this agreement to Dawson Geophysical. If you have any questions, please contact Dawson Geophysical at 1-800- 332-9766 or Enserch Exploration, Inc. at 1-800-725-1123. v— ti p► Twonweni region Enserch Exploration, Inc. September 25, 1995 Page 4 EXECUTED this 2$ day of September, 1995. DAVID R. LANGSTON, MA ATTEST: A-etty Johnson, Cit Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: Jean E. otts, . , rial Attorney EXHIBIT 2* Enserch Exploration, Inc., is an independent natural gas and oil exploration and production company. It is listed on the New York Stock Exchange amd had pro forma operating income of $34 million during 1994. Its year-end proved natural gas reserves as determined by DeGolyer & MacNaughton, independent petroleum consultants, were 1.04 Tcf with 46 MMbls of condensate. Enserch Exploration, Inc. explores for, develops and produces natural gas and crude oil in many areas thoughout the United States. Its domestic operations are concentrated in Texas, the Gulf of Mexico, Alabama, Louisiana, Mississippi, Oklahoma and the Rocky Mountains area. Enserch Exploration, Inc. operates over 600 oil and gas wells in Texas. The company's history dates back to the early 1900s and it has been conducting business under the Enserch Exploration, Inc. name since the mid-'70s. Enserch Exploration, Inc. has been active in 3-D seismic work since the inception of the technology and has shot or acquired over 280 square miles of 3-D seismic in Hardeman and Shackelford Counties alone. In an effort to develop new technology, Enserch Exploration, Inc. has joined with the Los Alamos National Laboratory to in research to develop instrumentation to verify the extent of sub- surface hydraulic fracture stimulation of producing wells. This technology holds great promise for the oil and gas industry and the maximization of domestic reserves of oil and gas. *From the 1993 Facts & Figures publication of ENSERCH Corporation and the 1995 Annual Report of Enserch Exploration, Inc. EXHIBIT 3 DAWSON GEOPHYSICAL COMPANY Founded in 1952, Dawson Geophysical Company acquires and processes seismic data used in the exploration for and development and field management of oil and natural gas reserves. In 1989, Dawson Geophysical Company began converting its operations from the traditional two- dimensional ("2-D") seismic method to the more technologically advanced three-dimensional ("3-D") seismic method. Since fiscal 1990, Dawson Geophysical Company has spent approximately $26 million to acquire new 3-D telemetry recording systems and associated equipment. Dawson's operations consist primarily of five 3-D seismic data acquisition crews and a seismic data processing center. As a result of an increase in industry -wide demand for its 3-D seismic surveys and Dawson's competitive positioning, the Company is continuing to experience an increase in demand for its 3-D seismic services. During fiscal 1994, substantially all of Dawson's revenues were derived from 3-D seismic operations. Dawson's land -based data acquisition crews operate primarily in the southwestern United States. Data processing is performed by Dawson geophysicists at the Company's.computer center in Midland, Texas. Dawson acquires and processes data only for its clients, ranging from major oil and gas companies to independent oil and gas operators, who retain exclusive rights to the information obtained. As compared to the 2-D seismic method, the 3-D seismic method provides an immense volume of more precise information to the oil and gas industry. Improved subsurface resolution from 3-D seismic data enhances the exploration for new reserves and enables oil and gas companies to better delineate existing fields and to augment their reservoir management techniques. This diversification of applications has reduced to a certain extent Dawson's dependence on the level of expenditures for oil and gas exploration. Potential benefits of incorporating 3-D technology into exploration and development programs include a decrease in oil and gas finding costs, a reduction of drilling risk and increased efficiencies in reservoir location, delineation and management. Dawson Geophysical Company believes that it maintains a competitive advantage in the industry by (i) continually updating its equipment to take advantage of advances in geophysical technology, (ii) maintaining skilled and experienced personnel for its data acquisition and processing operations, (iii) focusing its operations on the domestic onshore seismic industry, and (iv) providing integrated in-house operations necessary to complete 3-D seismic projects for its clients, including the related 3-D seismic survey design, permitting, surveying, acquisition and processing functions. The headquarters of Dawson Geophysical Company, a Texas corporation, are located at 208 South Marienfeld, Midland, Texas 79701, and its telephone number is (915) 682-7356.