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<br /> � STATE OF NEBRASI�A,�
<br /> � From Hall Cou7aty, ss.
<br /> �' Henry S�ithwick, single
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<br /> !! I hereby certi f y that this instrumer��t 2r;as f iled f or record z.ri m f o f f ice
<br /> ' at S` o'c1,ne7c A.�,� Apri 1 26 19 3� , and is
<br /> dul� reeorded 2n boolc a Q� page 1$` ,
<br /> !� �-�-��-����� Itegistea• of Deeds
<br /> � To $�
<br /> �,
<br />' �� Texas Isroduction Company Deput�.
<br /> �� 1+'ees,�62.�0
<br /> �� THE EXA
<br /> �' pa�ra on Boo OIL AND GAS MIl\TII\TG LEASE � Rental Boo�w 1
<br /> I� 3�12 1930 By J.T.N. - 3yI2 I�30 By J. .�.
<br /> �; An Agreement, entered into this 2�. day of Feb, , 19 3� , between
<br /> �,
<br /> !' Henry 9mithwick, a single man
<br />, � _
<br /> ': lessor (whether one or more), �nd TEXAS PRODUCTION COMPANY, a corporation orga ized uttder the laws of Colorado, lessee.
<br /> " 1. Lessor, in consideration of the sum of Twent3r'�ft�LU." Dollars (�2�.�� ), in hand paid, of �he royalties herein provided
<br /> � I; and the agreements of lessee herein contained, hereby grants, leases and lets exclusively unto lessee, for the purpose of testing by any method for formations '
<br /> � �i and prospecting and drilling for and producing oil and gas, laying pipe lines, building tanks, storing oil and building powers, stations, telephone lines
<br /> �; and other structures {including houses for employees) thereon, to produce,. save, take care of, treat and transport said products, the following described
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<br /> ;' land in Ha.11 County, State of Nebraska,, to-wit:
<br /> ��'� South S�est Quarter SPction Twenty; South xalf South Ea�t Quarter Section Nineteen, Township
<br /> Eleven North Range Eleven '�est containing 2�+0 acres more or less.
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<br /> !; 2. Subject to the other provisions herein contained, this lease shall remain in force for a term of ten years from this date (hereinafter called "primary
<br /> ;' term") and as long thereafter as either oil or gas is or can be produced from a.ny well on sa2d land; however, lessee at any time may release this lease
<br /> 'i in whole or in part.
<br /> � � `�� 3. The royalties reserved by lessor, and which shall be paid by lessee, are (a) on oil, one-eighth of that produced and saved from said land, the same
<br /> to be delivered at the wells or to the credit of lessor in the pipe line to which the wells may be connected, or, at the option of the lessee, from time to ,
<br /> time, the market price at the wells of such one-eighth on the day it is run to the pipe line or storage tanks, lessor's interest in either case to bear its
<br /> ; proportion of any expense of treating unmerchantable oil to render it merchantable as crude, and (b) on gas produced from said land and sold or used off
<br /> � the la.nd or in the manufacture of gasoline, including casinghead gas, the market price at the well of one-eighth of the gas so sold or used, provided that
<br /> �; if and when lessee shall seil g�,s at the wells lessor's royalty thereon shail be one-eighth of the amount realized from such sales. Lessee is hereby given the
<br /> �I option of purchasing all or any part of said royalty rights from the lessor at the best bona fide price offered by responsible third parties when and if
<br /> !� offered for sale or transfer by lessor.
<br /> 4. If clrilling operations are not commenced on said land on,Qx be ore ne ear fxo�y,,th�'s date this lease shal th n ter�n�t e as to both partfes, unless
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<br /> }� lessee shall pay or tender to lessor or to the credit of lessor in �iTB, e �an� OI tia.1T0 � Bank at 'Ca�.ro,lV(.'D.12 �0
<br /> �' (which bank is
<br /> lessor's agent) the sum of `�Vpe],VE �------------��------�-----��'�---�-��---��—�---� Dollars ($ .
<br /> ' (hereinafter called "rental"), which shail extend for six months the time within which driiling operations may be commenced. Thereafter, semi-annually, in
<br /> ilike manner, and upon like payments or tenders, the commencement of drilling operations may be further deferred for periods of six months during the
<br /> ' primary term. The payments or tenders of rental may be made by the check or draft of lessee mailed ur delivered to eaid bank on or before such date
<br /> ; of payment, Drilling operations hereunder shall be deemed to be commenced when the first material is placed on the ground. Notwithstanding any devolu-
<br /> �� tion, change or division in the ownership of said land, the payments or tendera of rental in the manner herein provided shali be binding on the successors,
<br /> �, assigns or legal representatives of lessor. If such bank (or any successor bank) should fail, liquidate or be succeeded by another bank, lessee shall not
<br /> i! be held in default for failure to make such payments or tenders until thirty days after lessor shall deliver to lessee an instrument in writing duly
<br /> i! executed and acknowledged, na,ming another bank as agent to receive such payxnents or tenders. The down cash payment is consideration for this lease
<br /> according to its terms and shall not be alocated as mere rentai for a period.
<br /> ' 5. If prior to the discovery of oil or gas on said Iand lessee should driIl a dry hoIe or hoIes thereon,this Iease shaII not be terminated thereby if Iessee,
<br /> !� before the next ensuing rental paying date, commences further drilling operations or commences or resumes the payment or tender of rentals. If after the
<br /> '` discovery of oil or gas the production the�eof should cease from any cause, this lease shall not be terminated thereby if lessee commences additional drilling
<br /> ;j operations within suity days thereafter or (if it be within the primary term) coxnmences or resumes the payment or tender of rentals before the next
<br /> ensuing rental paying date. If at the expiration of the primary term oil or gas is not being produced on said land but lessee is then engaged in drilling
<br /> i' operations thereon, the lease shail remain in force so long as drilling operations are prosecuted, and, if they result in the production of oil or gas, so long
<br /> {! thereafter as oil or gas is or can be produced from any well on said land.
<br /> � 6. Lessee shall have tha Tree use of oil, gas, wood, coal and water from said land, except water from lessor's wells, for ali operations hereunder, and the royalty on oil
<br /> !. and gas shall be in the net quantity after deducting any so used for operatione. Lessee shall have the right at any time during or after the expiration of this lease to remove
<br /> �� all property and fixtures place3 by leasee on said land, including the right to draw and remove all casing. When required by lessor, lesaee will bury all pipe lines below
<br /> ; ordinary plow depth, and no well shall be drilled within two hundred feet oP any residence or barn now on said land without lessor's consent. Lessor shall have the privilege,
<br /> 'f at the risk and expense of lessor, of making connection and using gas from any gas well on said land for atoves and inside lights in the principal dwelling on said land out
<br /> of any surplus gas not needed for operations hereunder.
<br /> � ;� 7. The rights of either party under this lease may be assigned in whole or in part and the provisions hereof ahall extend to the heirs, personal representatives, successors
<br /> i� and assigns, but no sale or assignment by lessor shall operate to enlarge the obligations or diminish the rights and privileges of lesaee. Should lessee seaign this lease in
<br /> �" whole or in part lessor shall look solely to the aesignee for performance of its terms as to the parte so assigned. No sale or assignment by lessor shall be binding on lessee
<br /> v y- for any purp,ose until lessee shall be furnished with an instrument in writing evidencing such sale or assignment. If lessee assigns this lease in art, the obli ation (iY an
<br /> J� � exists) to pay rentais ia apportioned as between the several owners ratably according to the surface area of each, and default by one of thempin the payment of rentals
<br /> shall not affect the validity of the lease on the portion of land upon which pro rata rentals are paid or tendered.
<br /> � j 8. This lease shall never be Porfeited, cancelled, or terminated for failure by lessee to perform in whole or in part any oP its implied obligations, nor while oil or gas is
<br /> ! being produced in paying quantities for any cause whatsoever, unless there shall first be a final judicial ascertain�rient that such obligation or cause exista and that lesaee
<br /> � j fs in default. Upon such final determination, lessee is hereby given a reasonable time thereafter to comply with such obligation, or, at lessee's election, to surrender the
<br /> � lease, with the option of reserving, under the terma of this lease, each producing well and ten acres surrounding it to be selected by lessee. Lessee shall not be liable in
<br /> � damages for breach of any implied obligation.
<br /> j 9. If six or more persons be or become entitled to royalties hereunder, they shall by sufficient written instrument designate some agent to receive payment for a11,
<br /> � �� and lessee shall not be required to make payment until such instrument is furnished. s
<br /> 10. When drilling or other operations are delayed or interrupted by lack of water, labor or material, or by fire, storm, flood, war, rebellion, fnsurrection, riot, atrike,
<br /> differences with workxnen, or failure of carriers to transport or furnish facilities for transportation or as a result of some order, requisition or necessity oi the government,
<br /> (`( '� or as the result of any cause whatsoever beyond the control of the lessee, the time of such delay or interruption shall not be counted against lessee, anything in this lease to
<br /> `! the contrary notwithstanding.
<br /> 11. Lessor hereby warrants and agrees to defend the title to said land and agrees that lessee, at lessee's option (but without any duty to do so), ma
<br /> �i y pay and diacharge
<br /> ; ariy taxes, mortgages or other liena upon said land, and in that event lessee shall be subrogated to such lien, with full right to enforce the same, and in addition thereto may
<br /> ii retain for the satisfaction of such lien and interest ali royalties or rentals accruing hereunder. If lessor owns an interest in said ]and less than the entire fee aimple esYate,
<br /> � !� then the royaltie� and rentals to be paid lessor shall be reduced proportionately. Should the right or interest of lessee hereunder be disputed by lessor, or any other person,
<br /> the time covered by the pendency of such dispute shall not be counted against lessee either as affecting the term ot the lease or the time for payment of rentals or
<br /> �j royalties or for any other purpose, and lessee may suspend all payxnents until there is a finai ad�udication or other determination of auch dispute.
<br /> � �;� IN WITNESS WHEREOF this instrument is executed on the date first above written. � , �
<br /> � 3�5t�930nby�'�I.E.L. APPROVED AS TO , Henry Smith,wick csEaL3
<br /> ,` DES�R�P�ION &nDATA �sEaL�
<br /> �' ' /��� �
<br /> zFSSOR
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<br /> �1 Attest: �GORP� TEXAS PRODUCTION COMPANY,
<br /> � 'i J.C.Hudnall (SEA ) By A.R.Vfilson '
<br /> �, Assistant Secretary. Vice President
<br /> y� �ss�
<br /> R�\ �; STATE OF NE�RASKA,
<br /> v County of Ha.l�. ; s�' �
<br /> � � On thie 2�, day of Feb• , i930 , before me, a Notary Pubiic, in and for said County, personally came the above named
<br /> I� Henry Smithwick and a single man , , who are personally known to me to be the identicai
<br /> �! persons whose names are affixed to the above instrument as Iessors, and they each acknowledged said instrument to be their voluntary act and deed.
<br /> �l Witness my hand and Notarial Seal the date last aforesaid. �sEe�L� G. �i.�VeM
<br /> �;
<br /> I t� Notary Public.
<br /> � My commission expires on the 27 day of July 197j`+ .
<br /> � �
<br /> i STATE OF COLORADO,
<br /> ss. 'y�
<br /> i� City and County of Denver,
<br /> `� On this �1 day of �reh , 19 30 , before me, a Notary Public, in and for said County, personally came the above named
<br /> ! A.R.�11B021 , Vice President and J.C+.HUC�Ylc'��.�. - Assistant Secretary of said Texae Production Company, who
<br /> are personally known to me to be the identical persons whose names are affixed to the above instrument as Vice President and Assista,nt Secretary of said
<br />• j� corporation, and they acknowledged the instrument to be their voluntary act and deed and the volunta,ry act and deed of said corporation.
<br /> I Witness my hand and Notarial Seal the date last aforesaid.
<br /> � . (3EAL� John TN Nax$ Publimc.
<br /> My commisaion expires on the Tj� day of Oct4ber 19�3
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