ACT Of ASSIGNMENT AMD ASSUMPTION AND MORTGAGE

ACT OF . 'SIGW ENT AND ASSUMPTION cated 3E of che 30th day cf September, 1983 ("Assignment"), from Freeport-McMoF an I n c . , a Delaware c o r p o r a t i o n ( ".-.s: : gnor" ) tc Freeport-McMoRan O i l and Gas Royalty Partnership, a Texas general p a r t n e r s h i p ("Assignee"), of which McMoPan Offshore Management Co., a Delaware c o r p o r a t i o n and F i r s t C i t y National Bank of Houston, as Trustee under t h a i c e r t a i n Royalty T r u s t Indenture dated September 30, 1982.. are the p a r t n e r s and AC" 0 r MORTGAGE by Assignee i n favor i f the Trustee a..d the Agent ri-ime aclow

W I T N E S S E T H

WHEREAS, McMoRan-rreeport 0:1 Company, a Delaware co r p o r a t i o n , executed ar.d d e l i v e r e d t o McMoRan O i l & Gas Co., a Delaware c o r p o r a t i o n ("MOG") t h a t c e r t a i n O v e r r i d i n g Royalty Conveyance ( t h t "Conveyance") dated September 28, 2983, a copy of the Conveyance being attached he:' to as Annex I and i n c o r p o r a t e d h e r e i n f o r a l l purposes, and a l l defined terms used i n th*s Assignment having the same meaning as i n the Conveyence;

WHEREAS, MuC- borrowed from the banks (the "Banks") named on the s i g n a t u r e '-age o i t h a t c e r t a i n C r e d i t Agreement dated as of September 1, 1983 (the MCred t Agreement") among MOG and the Banks, i n c l u d i n g Manufacturers Hanover Trust Company, i n d i v i d u a l l y and as agent (the "Agent"), the sum of 560,000,000 and as evidence of such borrowing executed and d e l i v e r e d i t s Promissory Notej dated September 30, 1983, one payable to each Bank i n a p r i n c i p a l sum equal t o the Commitment (as defined in_*trie C r e d i t Agreement) of such Bank, be a r i n g i n t e r e s t as t h e r e i n provided ( s a i d Promissory Notes of MOG being h e r e i n a f t e r -r e f e r r e d to as the "Notes"), and as s e c u r i t y f o r the Notes executed and d e l i v e r e d tc P. C l i f f o r d Wilson, as Trustee ( h e r e i n c a l l e d t he "Trustee") and t o the Agent a Mortgage, and Deed of Tr u s t and PIt-dge and Assignment of Production , dated as of September 28. 19e3 ( t h e "Mortgage"), by which MOG mortgaged t c P. C l i f t o r d ' i l s o n , as Trustee and h i s successors i n the t r u s t created by the Mortgage f o r the use

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and b e n e f i t of the Ager.t f o r tl i e pre r a t a b e n e f i t of the Banks, the Royalty I n t e r e s t , i n c l u d i n g i t s i n t e r e s t i n the Subject Minerals and a l l the r i g h t s , t i t l e s , i n t e r e s t s , estates, remedies, powers and p r i v i l e g e s vested i n MO * as owner of the Royalty I n t e r e s t or which i t then had or might become e n t i t l e d t o under and by v i r t u e of the terms and pr o v i s i o n s of the Conveyance;

WHEREAS, MOC has assigned and conveyed the Royalty I n t e r e s t t o Assignor, subject t o the Mortgage and the F i r s t Assignment, and Assignor has assumed the o b l i g a t i o n s of MOG under the C r e d i t Agreement, the Notes and the Mortgage, a l l i n accordance w i t h the p r o v i s i o n s of an Act of Assignment and Assumption and Mort .'age dated as of the 30th day of Set cembir, 1583 ( t h e " F i r s t Assignment'') and Assignee has mortgaged the Royalty I n t e r e s t pursuant t o the F i r s t Assignment ;

WHEREAS, an unexecuted copy o f the Mortgage (the "Form of Mortgage"» together w i t h Annex A t h e r e t o ( the form of the C r e d i t Agreement t o which i s attached the form of the Notes) i s a t t a c h e d hereto as Annex I I and in c o r p o r a t e d herein f o r a l l purposes;

NOW, THEREFORE, f o r and i n c o n s i d e r a t i o n of Ten Dol l a r s (SIO.00) and other good and val u a b l e c o n s i d e r a t i o n , trie r e c e i p t and s u f f i c i e n c y of which are hereby acknowledged, Assignor, Assignee, che Trustee and the Ag-snt hereby agree as f o l l o w s :

X. ASS' 'NMENT

Assignor does hereby g r a n t , bargain, s e l l , warrant, assign, t r a n s f e r and convey the Royalty I n t e r e s t unto Assignee, i t s successors and assigns, s u b j e c t , however, t o the Mortgage, t o have and t o hold the Royalty I n t e r e s t unto Assignee f o r e v e r , s u b j e c t t o the c o n d i t i o n s contained h e r e i n .

Assignor warrants t o Assignee: t h a t Assignor i s the t rue and l a w f u l owner of the Royalty I n t e r e s t and has f u l l r i g h t and a u t h o r i t y t o PC' 1 and convey the Royalty I n t e r e s t ; t h a t Assignor has good t i t l e t o the Royalty I n t e r e s t , f r e e and c l e a r of a l l l i e n s , charges and encumbrances except the Mortgage and the F i r s t Assignment; and t h a t Assignor w i l l warrant and f o r e v e r defend the Royalty I n t e r e s t unto Assignee against any other person

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whomsoever now or at any time .-ereafte r l a w f u l l y c l a i m i n g cr to c l a i m the same or any pa:* thereof by, through or under Assignor, but not oi h e r w i i . This instrument i s made ir. f u l l s u b s t i t u t i o n and subrogation of Assignee i n anc ox a l i cover-ants ana warranties by ethers h e r e t o f o r e given or made i n respect c;' the Subiect I n t e r e s t s or the Royalty I n t e r e s t or any p a r t t h e r e o f .

Assignor w i l l d u l y execute and de ' i v e r a i l such supplementary and c c r r e c t : 'e instruments and oth e r papers and assurances as s h a l l be necessary or proper f o r the p e r f e c t i o n -nd p r o t e c t i o n of the i n t e r e s t assigned hereby and the r i g h t s conferred or intended t o be c o n f e r r e d upon Assignee by t h i s Assignment.

I I . ASSUMPTION

Assignee hereby e x p r e s s l y assumes and agrees t o perform, observe ar.d c o n f i r m a i l and s i n g u l a r the covenants, agreements, terms, c o n d i t i o n s , o b l i g a t i o n s , appointments, d u t i e s and l i a b i l i t i e s of Assignor under the Credi' Agreement, the Notes and the Mortgage (and i n connection t h e r e w i t h has executed as Assignee each o i the Notes'1 and any document or instrument executed and de- %vi-red or f u r n i s h e d by Assignor i n connection tner< v i t h . Henceforth, the Assignee i s and s h a l l be bound by, and s h u i l enjoy the b e n e f i t s o f , the C r e d i t Agreement, the Notes and the Mortgage as i f Assignee had been a p a r t y t h e r e t o from the o r i g i n a l e x e c u t i o n and d e l i v e r y t h e r e o f . Henceforth, a L ". references i n the C r e d i t Agreement, the Notes and the Mortgage t o the "Obl i g o r " s h a l l ba deemed t o be references t o the Assignee. Assignee acknowledges the release of the Assignor from i t s o b l i g a t i o n s and l i a b i l i t i e s under the C r e d i t Agrf-sment, the Notes and the Mortgage i n accordance w i t h the terms t h e r e o f and agrees t h a t such re l e a s e s h a i l not c o n s t i t u t e a release c r discharge of Assignee from i t 6 o b l i g a t i o n s assumed hereunder.

I ! I MORTGAGE

To f u r t h e r evidence the assumption by AsBigi. e of Assignor's o b l i g a t i o n s under the Mortgage the C r e d i t Agreement and the Notes and to continue the l i e n of the Mortgage and, as s e c u r i t y f o r the payment c f the indebtedness described i n Section 1.1 of the Form of

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Mortgage as assumed pursuant t o t h i s Assignment, the Assignee by these presents does gra n t , bargain, s e l l , mortgage, pledge, assign, t r a n s f e r ar.d convey unto the Trustee and unto the Trustee's successors i n t h i s t r u s t -nd unto the Trustee's and t h e i r assigns, the f o l l o w i n g described p r o p e r t y , r i g h t s , t i t l e s , i n t e r e s t s , e s t a t e s , remedies, powers and p r i v i l e g e s ( c o l l e c t i v e l y , the "Mortgaged P r o p e r t y " ) , t o w i t :

(a) The Royalty I n t e r e s t , and a l l r .ts, t i t l e s , i n t e r e s t s , e s t a t e s , remedies, powers and p r i v i l e g e s vested i n the Assignee as the owner of the Royalty I n t e r e s t or which the Assignee now has or may become e n t i t l e d to under or by v i r t u e of the Conveyance, the F i r s t Assignment and t h i s Assignment.

(b) A l l r i g h t , t i t i e and i n t e r e s t t h a t the Assignee now has or may become e n t i t l e d to under or by v i r t u e cf the Conveyance the F i r s t Assignment and t h i s Assignment w i t . i respect to any and a l i Sales Contracts (as d e f i n e d i n the Form of Mortgage), a l l of such r i g h t , t i t i e and i n t e r e s t being hereby pledged w i t h and assigned t o the Trustee as p a r t of the Mortgaged Property.

TO HAVE AND TO HOLD the Mortgaged Property unto the Trustee, the Trustee's successors i n t h i s t r u s t , and unto the Trustee's succe c*iors, h e i r s , executors, a d m i n i s t r a t o r s and assigns f o r e v e r .

BLT IN TRUST, NEVERTHELESS, f o r the b e n e f i t and s e c u r i t y of the h o l d e r s of the Notes and a l l indebtedness described i n Section 1.1 of the Form of Mortgage as assumed by t h i s Assignee pursuant t o t h i s Assignment.

AND UPON THE TRUSTS and su b j e c t t o the terms, covenants and c o n d i t i o n s set f o r t h i n the Form of Mortgage, which terms, covenants and c o n d i t i o n s s h a l l be deemed ..o be inco r p o r a t e d h e r e i n as f u l l y as i f reproduced i n t h i c

Assignment and any references i n the Form of Mortange t 0

the "Obligor" s h a l l be deemed t o r e f e r t o the Assignee.

Special Mortgage

In order t o secure f u l l and punctual payment of the Notes at m a t u r i t y , or when otherwise due i n accordance w i t h the terms of the Form of Mortgage and the C r e d i t Agreement or as the same may be extended, and any and a l l

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of the other o b l i g a t i o n s assumec t y Assignee pursuant t o t h i s Assignment, the Assignee does, by these presents, mortgage, pledge and s p e c i a l l y hypothecate i n favor o t a l l present and f u t u r e holders of the Notes represented h e r e i i by the Trustee and the Agent, such p o r t i o n of the Mortgaged Property of the Assignee as i s s i t u a t e d i n the State of Louisiana or as t o which the laws of the State of Louisiana are a p p l i c a b l e as a matter of f e d e r a l law.

Pledge and Assignment of Production

The Assignee hereby grants, bargains, s e l l s , pledges, assigns, t r a n s f e r s , conveys, sets over and d e l i v e r s unto the Agent, i t s successors and assigns, ( a l l upon the terms and subject to the covenants and c o n d i t i o n s set f o r t h i n the Form of Mortgage) a l l of i t s r i g h t , t i t l e and i n t e r e s t i n and t o a l l the p r o d u c t i o n of Subject Minerals (as d e f i n e d i n the Conveyance) a t t r i b u t a b l e t o the Royalty I n t e r e s t ( the "Conveyance M i n e r a l s " ) , t o g e t h e r w i t h a l l proceeds and a l l r i g h t s accrued, t o accrue, or d e r i v e d from the sale of Conveyance Minerals and i n c l u d i n g a l l moneys due and t o become due under any of the Sales Contracts a t t r i b u t a b l e to the sale of Conveyance Minerals.

IV. MISCELLANEOUS

This Assignment s h a l l be b i n d i n g upon, and sha]1 inure to the b e n e f i t of, the p a r t i e s hereto and t h e i r r e spective successors and assigns

This Assignment i s executed i n m u l t i p l e counter­p a r t s . Each of such counterparts s h a l l be deemed an o r i g i n a l c f equal d i g n i t y and e f f e c t f o r a l l p e r t i n e n t purposes. Moreover, each and a l l of said c o u n t e r p a r t s , when taken t o g e t h e r , s h a l l c o n s t i t u t e one and the same Assignment.

IN WITNESS WHEREOF, the Assignor, the Assignee, the Trustee and the Agent have on the date f i r s t above w r i t t e n caused t h i s instrument t o be duly executes b e i o r e me, the undersigned Notary P u b l i c i n and f o r the County of New York, State of New York, i n the presence of the undersigned competent witnesses, aft*»r due reading of the

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whole and I , the Notary, have auly paraphed the Notes "Ne V a r i e t u r " f o r i d e n t i f i c a t i o n herewith.

ATTEST:

A s s i s t a n t Secre ta ry

FREEPORT-McMoRan INC.

By: L- »• \sc • Vice President

Aea yet a s t Secretary

FREEPORT-McMoRan OIL AND GAS ATTEST: ROYALTY PARTNERSHIP

By: McMoRan Offshore Management Co., General Partner

YiciT Pre i e n t

R. C l i f f o r d Wilson, Trustee

MANUFACTURERS HANOVER TRUST COMPANY, as Agent

By: I \ J . 1}

ea k^h±i Before me:

Notary P u b l i c

" 'NO 03-'749383 c ,|I«A>] .o Bronx Cou"'/

STATE OF MEW YORK ) SS . :

COUNTY OF NEW YORK )

EE IT REMEMBERED that: I , David Cordero , a Notary P u b l i c d u l y q u a l i f i e d , commissioned, sworn and a c t i n g i n and f o r the County and State a f o r e s a i d , hereby c e r t i f y t h a t on t h i s 30th day •>£ September 1983, t h e r e appeared b e f o r e me s e v e r a l l y each of the f o l l o w i n g persons each being the desi g n a t e d o f f i c *r of the c o r p o r a t i o n set opposite h i s name or the m d i v i c u a l named as Tru s t e e , and such c o r p o r a t i o n or i n d i v i d u a l being a p a r t y t o the for e g o i n g i n s t r u m e n t :

Rene L a t i o l a i s Vice P r e s i d e n t c f Freeport-McMoRan Inc.

John F. Gott:-;hall Vice President of McMoRan Offshore Management Co.

Harry R. Madeira Vice P r e s i d e n t of Manufacturers Hanover T r u s t Company

R. C l i f f o r d Wilson Trustee

CALIFORNIA On t h i s 30th day o f September, i n the year Z983, before me, the undersigned, a Notary P u b l i c of sa i d S t a t e , d u l y commissioned and sworn, p e r s o n a l l y appeared each of the above-mentioned persons, p e r s o n a l l y known to me ( o r proved t o me on the b a s i s o f s a t i s f a c t o r y evidence) t o be the person who executed the w i t h i n i n s t r u m e n t i n the c a p a c i t y set f o r t h o p p o s ite h i s name abcve on b e h a l f of the c o r p o r a t i o n s s t op p o s i t e h i s name above or as Trustee and acknowledged t o mt, i n the Cfese of such c o r p o r a t i o n s , t h a t such c o i p o r a t i o n executed i t , and acknowledged to me t h a t such c o r p o r a t i o n executed the v i t h i n i n s t r u m e n t pursuant t c t h e i r b y - l a v s or a r e s o l u t i o n c f t h e i r beards of d i r e c t o r s .

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IN WITNESS WHEREOF, I have hereunto set my hand and a f f i x e d my o f f i c i a l seal the day and year i n t h i s c e r t i f i c a t e f i r s t above w r i t t e n .

No(!a5r' y Public in and foOAuc r~'i~: s a i d State

'4.- '• V-rH

LOUISIANA On t h i s date before me personal I y ca^'^area i , C 3 * each such person, t o me p e r s o n a l l y known, each of whom being by me duly sworn., d i d say t h a t he i s the designated o f f i c e r of the c o r p o r a t i o n set opposite h i s name or the Trustee. . nd i n the case of such c o r p o r a t i o n s , *-hat the seal a f f i x e d t o the f o r e g o i n g instrument i s the corporate seal of said c o r p o r a t i o n and t h a t the instrument was signed and sealea on behalf of the c o r p o r a t i o n and was signed on behal f of the c o r p o r a t i o n by ..uthonty of i t s Board of D i r e c t o r s , and acknowledged the instrument t o be the f r e e act and deed of the c o r p o r a t i o n set opposite h i s name.

TEXAS This instrument was acknowledged before me on t h i s date by each such perscn, each of whom i s the Trustee or the designated o f f i c e r of the c o r p o r a t i o n set opposite h i s name, on behalf o f , i n the case of such c o r p o r a t i o n s , the c o r p o r a t i o n set opposite . l i s name.

to Jits Notary P u b l i c , State of New Yo k

No. Ol' VlifM? Qualifies in New York Courty

Commission Expires Z fJoJaJ'

PAV'D l .C'DERO No'an p- " "J** '*

O'.a- Qr , i» Co'jnty O-t ••- •• n U.~* v O u " " * f

ComniiiSior. bap'res Varch 20. -L.