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— � - �o� �� - �� STATE OF NEBRASSA,� F�'om Hall County, ss. Charles Haldeman and �ife I he�•eby certif� that this instrumerct was filed for record in my office . at �` �'c1,ncic A.DT,, April 26 is 30 , and is dul� recorded in book `�Q�� page �1 . ��,-�„�,�,.�°' C�� U�-�-�-�� B� �^ I�/� h� Reqiste�• of De s � To J � i��N-- � � �ny � �9� ��,"" ^-��-,�'3 y � -��, Texas Production Company P� ��"' �``~� Deputy. , � �� - � , _ � ,�,� !�'�l��ees,� 2.65 �ease �°.n�o � OII, AND GAS MINING LEASE �ten�a��ook517 � ��i��o �y J.�.N. . . 3I14 193o ByJ.'�. . An Agreement, entered into this �6 day of Feb• , 193� , betweea Chaxles Haldeman and Alice Haldeman,Hie VPife ` U lessor (whether one or more), and TEXAS PRODUCTION COMPANY, a corporation organized under the laws of Colorado, lessee. �j 1. Lessor, in consideration of the sum of s�.Xt86Yi. Dollars (� 16.�� ), 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 attd producing oil and gas, laying pipe lines, building tanks, storing oil and building powers, stations, telephone linea and other structures (inciuding houses for employees) thereon, to produce, save, take care of, Lreat and transport said products, the following described land in Ha,ll County, State of Nebraska; to-wit: � North 1�est Quarter of Section T�venty �hree Tovrnship Eleven,North Ra.nge Eleven,West � containing 160 acres more or less. �,w�u�� n��a{ /��' � ,,�� v , � � ��e-l��-i �f w"' °�� µ?��;�-�'`t «�� C��h�� � 7l�-�� "�`�,e3.�� °,,�.�', �, y�__-- � ��___- 2: Subject to the other provfsions herein contained, this lease shali remain in force for a term of ten years from this date (hereinafter called "primary term") and ae 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 lea»se 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 �vvells or to the credit of leasor in the pipe line to which the wells may be connected, or, at the option of the lessee, from time to time, the market price at the wells of auch 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 mercha,ntabie 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 sold or used, provided that if and when lessee ahall sell gas at the wells lessor's royalty thereon shall be one-eighth of the amount realized from such sales. Lessee ie 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 tranafer by lessor. 4. If drilling operations are not commenced on said land on o before one y ar from this date, this lease shail then terx�inate as to both parties, unless � . lessee shall pay or tender to lessor or to the credit of lessor in l�ebraska �Tat�1 Bank at Grand IB18,T1 �IJ bCwhich bank fs lessor's agent) the aum of $1�$'�---------------------�---�—�+------------------- Dollara ($ $� Q� ) (hereinafter cailed "rental"), whic shall extend for six months the time within which drilling operations may be commenced. Thereaf�er, semi-annually, in like manner, and upon like payments or tenders, the commencement of drilling operationa may be further deferred for periods of aix months during the prima,ry term. The payments or tenders of rental may be made by the check or draft of lessee mailed �r delivered to said bank on or before such date � of payment. Drilliag operations hereunder shall be deemed to be commenced when the first material fs placed on the ground. Notwithsta.nding any devolu- tion, change or division in the ownership of said land, the payments or tenders of rentalin the manner herein provided shall be binding on the auccessors, � assigns or legal representatives of lessor. If such 'bank (or any successor bank) ahould fail, liquidate or be sucCeeded by another bank, lessee shall not - be held in default for failure to make auch payments or tenders until thirty days after lessor ahall deliver to lessee 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 leasa 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 driil a dry hole or holes thereon,this lease shall not be terminated thereby if lessee, before the next ensuing rental paying date, commences further drilling operations or commencea or resumes the payment or tender of rentals. If after the � discovery of oil or g'as the production thereof should cease from any cause, this lease shall not be terminated thereby if lessee commences additional drilling operations within sixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender oP 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 lessee is then engaged in drilling �,\ • operations thereon, the lease shall remain in force so long as driliing operationa are prosecuted, and, if they result in the production of oil or gas, so long �) thereafter as oil or gas is or can be produced from any well on said land. 6. Leasee shall have the free use of oil, gas, wood, coal and water from said land, except water Prom lessor's wells, for all operations hereunder, and the royalty oa oil and gas shall be in the net quantity after deducting any so used for operations. Lessee ahall have the right at any time during or after the expiration of thia lease to remove all groperty and fixtures placed by lessee on said land, including the right to draw and remove all casing. When required by lessor, lesaee wiil bury all pipe linea below C i ordinary plow depth, and no well shall be drilled within two hundred feet oi any residence or barn now on said land without lessor's consent. Lesaor shall have the privilege, , at the risk and expense of lessor, of making connection and using gas from any gas well on sadd land for stoves and inside lights fn the principal dwelling on said land out � of any surplus gae not needed for operations hereunder. ?. The rights of either party under thia lease may be asaigned in whole or in part and the provisions hereof shall extend to the heirs,personal repreaentatives, succeasors � and assigns, but no sale or assignment by lessor ahall operate to enlarge the obligations or diminish the rights and privileges of lesaee. Should lessee assign this lease in , whole or in part lessor shall look solely to the aseignee for perforxnance of its terxna as to the parte ao assigned. No sale or assignment by lessor shall be binding on leasee for any purpoae until lessee shall be furni�hed with an instrument in writing evidencing such sale or aesignment. IY lesae�a�signs this lease in part, the obligation (ii any exiats) to pay rentals is apportioned as between the several owners ratably according to the aurface area of each, and default by one oP them in the payment o! rentals ahall not affect the validity of the lease on the portion of land upon which pro x•ata rentals are paid or tendered. 8. This lease ahsll never be forfeited, cancelled, or terminated for failure by lessee to perform in whole or in part any of its implied_obligationa, nor while oil or gas ia being produced in paying quantitiea for any cause whatsoever, unless there shall first be a final judicial ascertainment that such obligation or cause exists and that lesaee is in default. Upon auch final deterxnination, lessee is hereby given a reasonable time thereafter to comply with such obligation, or, at lessee'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 selected by lesaee. Lesaee shall not be liable ia damages for breach oY any implied obAgation. 9. If six or more persons be or become entitied to royalties hereunder, they shall by sufficient written instrument designate aome agent to receive payment for all, and lessee shall not be required to make payment until auch instrument ia furnished. 10. When drilling or other operations are delayed or interrupted by lack of water, labor or material, or by fire> storm, flood, war, rebeilion, insurrection, riot, atrike, differences with workmen, or failure of carriers to transport or furnish facilities for transportation or as a result of some order, re9uisition or necessity of the government, or as the reault oP any cause whatsoever beyond the control of the lessee, the time of such delay or interruption shall not be counted against lessee, anything in thi8 lease to the contrary notwithstanding. 11. Lesaor hereby warranta and agrees to defend the title to said land and agreea thAt lessee, at lessee's option (but without any duty to do so), maq pay and discharge ariy taxes, mortgages or other liens upon said land, and in that event lessee shall be subrogated to auch lien, with full right to enforce the eame, and in addition thereto may retain for the satisfaction of such lien and interest all royaltiea or rentals accruing hereunder. If leasor owna an interest in said land less than the entire fee aimple estate, then the royalties and rentals to be paid lessor ahali be reduced proportionately. Should the right or interest of leasee hereunder be diaputed by lessor, or any other person, the time covered by the pendency of such dispute ahall not be counted against lessee either as affecting the term oP the lease or the time for payment of rentala or royalties or for any other purpose, and lessee may suspend all payments until, there is a final adjudication or,other determination oY auch diapute. IN WITNESS WHEREOF this instrument is executed on the date first above written. • Pos� on M�p �APP�RO�F�D- AS TQ Charles Haideman cs�z� 3-1 0 by .E.L. DE C� T N & DA`;'A Ali�ce Haldeman �s�� �/I�T,��QTi13.21 L�SBOfi $/ U � Attest: CORP TEXAS PRODUCTION COMPANY, J.C.Hudnall �SEAL By A,R.l�ilson _ ', Assistant Secretary. Vice Presfdent �, LESSEE STATE OF NEBRASKA, � � H ss. Count of all , Y ^� On this 26 day of Februa,ry , 19 3� , before me, a Notary Public, in and for ss�id County, personally came the above named Charles Haldeman �d AZiC� HAldeman , his wife, who are personally known to me to be the identical persons whose names are affixed to the above instrument as lesaors, 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.I+.Sorensen PTotary Public. My commiasion expires on the 20 day of July , ig 31 . � STATE OF COLORADO, as. City and County of Denver, - � On this �.9 day of �dareh , i9 �� , before me a Notary Public, in and for said County, personally came the above named �,,R,Wilson , Vice President and 'J.C.Hudnc�.l� Assistant Secretary of said Texas Production Gompany, who are personally known to me to be the identica,l persons whose names are affixed to the above instrument as Vice Eresident and Assistant Secretary of aaid corporation, and they acknowled�ed 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. ��EAL� eTOYlIl T.�yStTOt11 Notary Public. � M commission e ires on the � da of 0 e t ob e r , 19 3 3 u� � . � _