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. �e7 , 1f��W � \�//I��, �J�W,'I�\�W�/�)/��u� ° ��J��\��W��J��{//�� . �'��C% ��J �S�1 R�/�� / PJ� .... � TJ STATE OF NEBPA,.4SA, From � ss. � Hall County, 8udo lph Fall er and w i f e I hereby certi f y that this instrumer��t was f iled f or record in my o f f ice � , at S o'cloc7c A.�1., April 26� 19 3p , and is dul� recorded in boolc nQ�� page 23 . �• ��L�,� _ Register of Deed$ � To B✓ � Texas Production Company Deputy. � THE TEXA COM - Fees,�2.65 _ _ � ease o. ease .N .N- �� Q E iration Boox OIL AND GAS MINING LE�.SE ental �ook - �12 19 0 B J.T. . 3�12 �93o By J.�.N. 3 3 y � An Agreement, entered into this �.9 day of Febz�uary , 19 3� , betweea 8udolph Faller and Bertha Fa11er,His '�ife � ' lessor (whether one or more), and TEXAS PRODUCTION COMPANY, a corporation organized under the laws of Colorado, lessee. � 1. Lessor, in consideration of the sum of siRteen Doilars (�16.�0 ), in hand paid, of i�he royalties herein provided and the agreements of lessee herein contained, hereby grants, leases and lete exclusively unto lessee, for the purpoae of testing by any method for formations and prospecting and drilling for and producing oil and gas, laying pipe lines, building tanks, storing oil and building powers, stations, telephone lines and other structures (including houses for employees) thereon, to produce, save, take care of, treat and transport said products, the following described � land in Aa.1.1 County, State of Nebraska, to-wit: North �Pest Quarter Section One Toqvnship �leven North Ran�e T�elve West and containin� 160 I acres more or less. _ � 2. S�bject to the other provisions herein contained, this lease shall remain in force for a term of ten years from this date (hereinafter ca,lled "primary► � term") and as iong thereafter as either oil or gas ia or can be produced from any well on said land; however, lessee at any time may release this leasa in whole or in part. I � - 3. The royalties reaerved 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 ta 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 time, the market priGe 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 ita proportion of any expense of treating unmerchantable oil to render it merchantable as crude, and (b) on gas produced from sa.id land and sold or used off � the land 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 if and when lessee shall sell gas at the wells lessor's royalty thereon sha11 be one-eighth of the amount realized from such sales. Lessee is hereby given the 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 �� offered for sale or transfer by lessor. 4. If drilling operations are not commenced on said land on b fore,qne ear o th�s date, this lease sh 1th en terx�n�t�e as to both parties, unless lessee shall pay or tender to��so qr to the credit of lessor in ��a�e 13&Il� O� �31 T O� �ml�at �8,1 T O� lV e D. (which bank is N � lessor's agent) the sum of l��T --------"------"—"---"--"'—'—'--"---"—�------'—�. Dollars ($ $�.�� ) a� (hereinafter cailed "rental"), which shall extend for aix months the time within which driiling operations may be commenced. Thereafter, semi-annually, in + �ike manner, and upon like payments or tenders, the commencement of drilling operations may be further deferred for periods of six months during the prima,ry term. The payments or tendera of rental may be made by the check or draft of lessee mailed or delivered to said bank on or beYore such date � of payment. Driiling operations hereunder sha11 be deemed to be commenced when the first material is placed on the ground. Notwithstanding any devolu- tion, change or division in the ownership of said land, the payments or tendera of rental in the manner herein provided ahall be binding on the succesaors, assigns or legal representativea of lessor. If such bank (or any successor bank) should fail, liquidate or be succeeded by another bank, lessee shall aot be held in default for failure to make such payments or tenders until thirty days after lessor shall deliver to leasee an instrument in writing duly executed and acknowledged, naming another bank as agent to receive such payments or tenders. The down cash payment is consideration for this lease according to its terms and shall not be alocated as mere rental for a period. �. 5. If prior to the discovery of oil or gas on said land lessee ahould drill a dry hole or holes thereon, this lease shall not be terminated thereby ff lessee, I before the next ensuing rental paying date, commencea further drilling operations or commences or resumes the payment or tender of rentals. If after the (� discovery oP oil or gas the production thereof should cease from any cause, this lease ahall not be terminated thereby if lessee commences additional driiling � operations within sixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rentals before the next ensuing rental paying date. If at the expiration of the primary term oil or gas is not being produced on said land but leasee is then engaged in drilling operationa thereon, the lease shall remain in force so long as drilling operations are prosecuted, and, if they result in the production oE oil or gas, ao long' thereafter as oil or gas is or can be produced from any well on said land. 6. Lessee shall have the free use oP oil, gas, wood, coal and water from said land, except water from lessor's wells, for all operations hereunder, and the royalty on oii and gas sha11 be in the net quantity after deducting any so uaed for operations. Leasee shall have the right at any time during or after the expiration of this lease to �'emove all property and fixtures placed by lessee on said land, including the right to draw and remove all casing. Wheiz required by lesaor, lessee will bury a11 pipe liaes below ordinary plow depth, and no well ahall be drilled within two hundred feet of any residence or barn now on said land without lessor's consent. Lessor aha11 have the privilege, 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 of any surplus gas not needed for operations hereunder. 7. The rights of either party under this lease may be assig'ned in whole or in part and the provisions hereof ahall extend to the heirs, personal representatives, auccessors and assigns, but no sale or assignment by lessor ahall operate to enlarge the obligations or diminish the righta and privileges of leasee. Should lessee essiga this lease in whole or in part lessor ahall look solely to the assignee for performance of its terms as to the parts so assigned. No sale or asaignment by lessor shall be binding on lesaee for any purpose until lessee shall be furnished with an instruxnent in writing evidencing auch sale or assignment. If lessee assigna this lease in part, the obligation (1! any exists) to pay rentals is apportioned as between the aeveral ownera ratably according to the surface area of each, and default by one of them in the payment of x'entals shall not affect the validity of the lease on the portion of land upon whicri pro rata rentals axe paid or tendered. 8. This lease ahall never be forfeited, cancelled, or terminated for failure by lessee to perform in whole or in part any oY its implied obiigations, nor while oil or gas is � being produced in paying quantities for any cause whatsoever, unless there shall firet be a final judicial ascertainxrient that such obligation or cause exists and that lesaee is in default. Upon`such final determination, lessee is hereby given a reasonable time thereafter to comply with auch obligation, or, at lessee's election, to surrender the lease, with the option of reserving, under the terms of this lease, each producing well and ten acres aurrounding it to be aelected by lessee. Lessee aha11 not be liable in damages for breach oE any implied obligation. 9. IP six or more peraons be or become entitled to royalties hereunder, they shali by sufficient written inetrument designate aome agent to receive payment for all, and lessee ahall not be required to make payment until such instrument is furnished. � 10. �Vhen drilling or other operations are delayed or interrupted by lack of water, labor or material, or by fire, storm, flood, war, rebellion, insurrection, riot, atrike, differencea with workmen, or failure of carriera to transport or furnish facilities for transportation or as a result of some order, requisition or neceasity of the government, 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 againat lessee, anything in this lease to the contrary notwithstanding. 11. Leseor 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), may pay aad discharge retain�for�he aatfsfactiontoErsuch�l en�and lnte est all oyaltae�ev��nrentals a crning hereundera tIE lessorlow slan fnterest in said landtless than the entireafee aimplet etate then the royalties and rentals to be paid lessor shall be reduced proportionately. Should the right or interest of lesaee hereunder be disputed by lessor, or any other peraon, the time covered by the pendency of such diapute shali not be counted against leasee either as affecting the term oE the lease or the time Yor payment of rentala or royalties.or for any other purpoae, and lessee may suspend all payments until there is a final adjudication or other determination of auch dispute. ITNE WHEEtEOF this instrument is executed on the date first above written. Pos ec�on �ap AP R V D �S T$ Rudolph Faller �s�'� 3-�1930 vY I.E.L. D�S�R P�IO n& ATA Bertha Faller es�aL� � fi �f � L�ssoR � � Atteat: CORP TEXAS PRODUCTION COMPANY, ��R.Wll$021 J.C.Hudnall �SEAL ' By � Assistant ecretary. Vice President r�ss� ' STATE OF NEBRASKA, � ss. County of H3�y�.1. On thia 2'7. day of Februa.ry , 19 3�, bePore me, a Notary Public, in and for said County, personally came the above aamed Rudolph Faller ana Bertha Fal�er , his wife, who are personally known to me to be the identical peraone whose names are affixed to the above instrument as leasors, and they each acknowledged said instrument to be their voluntary act and deed. Witness my hand and Notarial Seal the date last aforesaid. (sEAL) W.E.Sorensen I - Notary Pubiic. 4 My commission expires on the 20 day of July , 19 31 - STATE OF COLOftADO, j�� � as. ' City and County of Denver, ; On this 1.I day of �areh , 19 3� , before me, a Notary Public, in and for said County, personally came the above named A,R..T�1�.8021 , Vice President and e7.�"i.HU.CL21a.1-Z . Assistant Secretary of said Texas Production Company, who are personally known to me to be the identical persons whose names are affixed to the above instrument as Vice President and Assistant Secretary of said corporation, and they acknowledged the instrument to be their voluntary act and deed and the voluntary act and deed of said corporation. Witness my hand and Notarial Seal the date last aforesaid. t S�L� eTO71A 3'.�y$trOTCt ' Notary Public. M commission expires on the 7j� day of October , is 33 .