STATE OF CALIFORNIA GAVIN NEWSOM, Governor CALIFORNIA STATE LANDS COMMISSION EXECUTIVE OFFICE 100 Howe Avenue, Suite 100-South Sacramento, CA 95825-8202 JENNIFER LUCCHESI, Executive Officer (916) 574-1800 Fax (916) 574-1810 California Relay Service TDD Phone 1-800-735-2929 Voice Phone 1-800-735-2922 DELIVERED VIA EMAIL AND CERTIFIED MAIL July 1, 2019 File Ref: PRC 3133.1 PRC 4000.1 PRC 7911.1 Charles Cappel Chief Executive Officer Carone Petroleum Inc. 1145 Eugenia Pl., Suite 200 Carpinteria, CA 93013 RE: Termination of Lease Nos. PRC 3133.1, PRC 4000.1, and PRC 7911.1 Dear Mr. Cappel, On June 28, 2019, the California State Lands Commission terminated State Oil and Gas Leases PRC 3133.1, PRC 4000.1, and PRC 7911.1 (the Leases). As a result, all entitlements to occupy or develop State of California lands within the previously leased areas for purposes of extracting mineral resources, have ended. Pursuant to the California Coastal Sanctuary Act of 1994 (Pub. Resources Code ยง 6240 et seq.), the termination of the Leases now places the leased lands within the California Coastal Sanctuary. Mineral extraction on lands within the sanctuary is prohibited by law. Sincerely, JENNIFER LUCCHESI Executive Officer Charles Cappel July 1, 2019 Page 2 cc: Joan Barminski, Regional Director, Bureau of Ocean Energy Management Mark Fesmire, Regional Director, Bureau of Safety and Environmental Enforcement Theresa Bell, Bureau of Safety and Environmental Enforcement Marion Garcia, U.S. Department of Transportation Ken Harris, CA Department of Conservation Tom Cullen, CA Department of Wildlife Alison Dettmer, CA Coastal Commission John Zorovich, County of Santa Barbara Bonnie Luke, County of Ventura David Durflinger, City of Carpinteria Will Daniel, Exxon Mobil Corporation