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��- � (� �� 2�- ��j�J��VJ��J�J� ��J�� STATE OF NEBRASKA,� From Hall County, ss. Fred J.�ti7.ler �.nd wife I hereby certify that this tinstrumer��t uas filed for record in my office � . at $ dclocic A. D7., ApTil 2b 193� , and is duly recorded in boolc p Qa page 25 . � �-LG�'� Register of Deed$ To B✓ Texas Production Company Deputy. THE TEXAS COb�PANY 1�'ees;�.65 �xa�rat�onNBo� OII� IA.ND .CsAS MI1�TI1\TG LEASE easa o.o - o � �'�i� �9�8 �y J. .x. �2 1 0 B J. .N. 3 y3 � An Agreement, entered into this �� day of Fe b. , 1 9 3 0 � , be t w e e n Fred J.Miller and Annie L.Miller,his wife lessor (whether one or more), r�,nd TEXAS PRODUCTION COMPANY, a corporation organized under the laws of Colorado, lessee. 1. Lessor, in consideration of the sum of Twenty-f our pollars ($ 2�-•�� ), in hand paid, of the royalties herein provided 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 and prospecting and drilling for and producing oil and gas, laying pipe linea, building tanks, storing oil and building powera, atations, telephone lines and other atructures (including houses for employees) thereon, to produce, save, take care of, treat and transport said products, the following deacribed land in �a,l,], County, State of Nebraska, to-wit: North� West Quaxter and �Pest Half North East Qua.rter Section Twenty Eight ,Township Eleven , 1Qorth Range Twelve iNest contain�n9 2�+0 acres more or less. 2. Subject to the other provisions herein contained, this lease ahall remain in force for a term of ten years from this date (hereinafter called "primary term") and as long thereafter as either oil or gas is or can be produced from any well on said land; however, lessee at any time may release this lease in whole or in part. � 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 ; to be delivered at the wella or to the credit of lessor in the pipe line to which the wella may be connected, or, at the option of the lesaee, from time to , • 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 ' 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 the land or in the manufacture of gasoline, including casinghead gas, the market price at the well of one-eighth of the gas so aold or used, provided that i€ and when lessee shall sell gas at the wells lessor's royalty thereon shall 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 responaible third parties when and fP offered for sale or transfer by lesaor. 4. If drilling operations are not commenced on said land o r before on yeax from Lhis date, this lease sha then�te��atea��to both parties, unless lessee shall pay or tender.to�ssor or to the credit of lessor in�'armers �Ta.'G@ Bank at��OOQ nlV@T�N b (which bank is lessor's agent) the sum of welve ---�-�----'�—�"""'—""""—""'—'"' --Dollars ($ ],�.b0 ) (hereinafter called "rental"), which shail extend for six months the time within which drilling operations may be commenced. Thereafter, semi-annually, in � like manner, and upon like payments or tender,, the commencement of drilling operations may be further deferred for periods of six months during the primary term. The payments or tenders of rental may be made by the check or draft of lessee mailed ur delivered to said bank on or before such date � of payment. Drilling operations hereunder shall 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 aaid land, the payments or tenders of rental in the manner herein provided shall be binding on the succesaora, � assigns or legal representatives of lessor. If such bank (or any auccessor bank) ahould fail, liquidate or be succeeded by another bank, lessee ahall not 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 � �p executed and acknowledged, naming another bank as agent to receive such payments or tenders. The down cash payment fs consideration for this lease Vi� 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 if leasee, � before the next ensuing rental paying date, commences further driiling operations or commences or resumes the payment or tender of rentals. If after the discovery of oil or gas the production thereof should cease from any cause, this lease ahall not be terminated thereby if lessee commences additional drilling � operationa within sixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender oE rentals before the neat R. 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 l� operations thereon, the lease shall remain in force so long as drilling operations are prosecuted, and, if they result in the,production oP oil or gas, ao long ' ' thereafter as oil or gas is or can be produced from any weil on said land. 6. Lessee shall have the free use of oil, gas, wood, coal and water irom said land, escept water from lessor's wells, for ali operations hereunder, and the royalty on oil and gas shall be in the net quantity after deducting any so used for operations. Lessee shall have the right at any time during or after the espfration of this lease to remove all property and fixtures placed by lessee on said land, including the right to draw and remove a11 casing. When required by lessor, lesaee will bury all pipe lines beloW ordinary plow depth, and no well aha11 be drilled within two hundred feet oE any residence or barn now on said land without lessor's consent. Lessor shall have the privilege, at the risk and expenae of lesaor, of making connection and using gae from any gas well on said land Por atoves and inBide lights in the principal dwelling on said land out of any surplus gas not needed fox operations hereunder. � 7. The rights oE either party under this lease may be assigned in whole or in part and the provisions hereoP shall extend to the heirs, peraonal representatives, auccessors and assigns, but no sale or assignment by lessor shall operate to enlarge the obligations or diminish the rights and privileges of leasee. Should lesaee assign thi8 lease in whole or in part lessor ahall look aolely to the assignee for performance of its terms as to the parts ao assigned. No sale or asaignment by lessor aha11 be binding on lessee for any purpose until lessee shall be furnished with an instrument in writing evidencing such sale or assignment. IL lessee assigns this lease in part, the obligation (if anq exiats) to pay rentals is apportioned as between the several owners ratably according to the aurface area of each, and default by one of them 3n the payment o! rentals ahall not aYfect the validity of the lease on the portion of land upon which gro rata rentals are paid or tendered. 8. This lease ahali never be Porfeited, cancelled, or terminated for failure by lessee to perform in whole or in part Any oP ita implied,obligationa, nor while oil or gas ie being produced in paying quantitiea for any cauae whatsoever, unless there ahall first be a final judicial ascertainxnent that such obligation or cause exists and that lessee is !n default. Upon auch final deterxnination, lessee is hereby given a reasonable time thereafter to comply with such obligation, or, at lesaee's election, to aurrender the lease, with the option of reserving, under the terms of this lease, each producing well and ten acres surrounding it to be aelected by lessee. Leasee shall not be liable in damagea for breach of any implied obiigation. receive a ent for all, � si ate some agent to p Y�► 9. IE aix or more persons be or become entitled to royalties hereunder, they ahall by sufficient written instrument de gn � and leasee ahall not be required to make payment until such instrument is furniahed. \ S0. When 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, differences with workmen, or failure oi carriers to traneport or furnish facilities for tranaportation or as a reault of some order, requisition or necesaity oY the government, e V 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 thia lease to the contrary notwithstanding. a a aad diaChar e without an dut to do so), m y p Y 8 ee at lessee's option (but Y Y il. Lessor hereby wasrants and agrees to dePend the title to said land and agrees that less , ht to enforce the same, and in addition thereto maq (� ariy taxes, mortgages or other liens upon suid land, and in that event lessee shall be subrogated to such lien, with full rig retain for the satisfaction of such lien and intereat all royalties or rentals accruing hereunder. If leasor owns an interest in said land lesa than the entire fee aimple eatate, N then the royalties and rentals to be paid leasor shall be reduced proportionately. Should tha right or interest oi lessee hereunder be disputed by lesaor, or any other peraon, the time covered by the pendency of auch dispute ahall not be counted against lessee either as affecting the term of the lease or the time !or payment of rentals or I � royaltiea or Eor any other purpose, and lessee may suspend all payments until there is a final adjudication or other determination of such diapute. IN WITNESS WHEREOF this instrument is executed on the date first above written. � Po ted n Ma APPROVED .AS TO Fred J.Miller es�u.) 3_�_�93�j By �.E.L. D S ��PTION & DATA Annie L.Miller es�� ��,�0/��eman r.rssox Attest: �"�� TEXAS PRODUCTION COMPANY, � J.C.Hudnall �SEAL3 By - A.R.�Yilson � Asaistant Secretary. Vice President v i•FQB�'i STATE OF NEBRASKA, � County of H311. as' On this 2�. day of February , i9 30 , before me, a Notary Public, in and for said County, personally came the above named �'r e d J.Mi 11 e r and Ann i e 1+.Mi 11 e r , his wife, who are personally known to me to be the-identical persons whose names are affixed to the above instrument as lessors, and they each acknowledged said instrument to be their voluntary act and deed. Witness my hand and Notarial Seal the date last aforesaid. �s�;AL�. �'.,H:Per$sctn'.- � . Notary PubIic. My commission expires on t 6tY1 day of Febr. , 19 32 - STATE OF COLORADO, ��<�� o � ss. -��_' .� -"�' �"D� City and County of Denver, On this 12 day of �a.rC13 , 19 3� , before me; a Notary Public, in an fo 'd Coun��r�4�lly came ve ed A.R.�i l�.on , Vice President and J.C+.Hudnal l Assistant ecre ' Texas�i�dduc�iqn Comp who are personaliy known to me to be the identical persons whose names are affixed to the above instrument as ' en �S�retary said corporation, and they acknowledged the instrument to be their voluntary act and deeci and the voluntary act and ' c Witness my hand and Notarial Seal the date last aforesaid. (gEAL) Joh Nystrom Notary biic. M commiasion ex ires on the � da oY 0 c t ob e r �s