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Syngas Land (Lease) EXHIBIT B Permitted Encumbrum 1. Standby fees, taxes and assessments by any taxing authority for the year 1999 and subsequent years not yet due and payable, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. 2. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities: (a) To tidelands or land comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs, or oceans, or (b) To lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or (c) To filled-in-Iands Or artificial islands, or ( . (d) To statutory water rights, including riparian rights, or (e) To the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across the area. 3. Subject to any portion of the herein described property lying within the boundaries of San Jacinto Bay. 4. Right-of-way for pipeline over Lots 10 and 48 of Strang Subdivision as evidenced by instrument from Lois Cotton Blaydes and husband, Ralph H. Blaydes, to Texas Eastern Transmission Corporation, recorded in Volume 2508, Page 217, of the Deed Records of Harris County, Texas, as amended by instrument dated April 17, 1974, between Selected Land Corporation and Texas Eastern Transmission Corporation, recorded'in the office of the County Clerk of Harris County, Texas under Clerk's File Number E194171. 5. Terms, conditions and stipulations contained in Right-of-Way and Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number K838717. ~ HOU03:144138.7 B:l::