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<br /> STATE OF NEBRASgA,� j
<br /> ; From Hall County, ��' '
<br /> 1
<br /> i; Arthur C.DeA�iSll & W3.fe I hereby certify tlaat this inst��umey�t 2��cs filed for-record in my office
<br /> !� - at S' o'clncic A�i., MSy 28` 19 30 , and is
<br /> ,� dul� recorded in book �Qb page .�
<br /> i, ��-�
<br /> �, Reqister of Deeds
<br /> � To BJ
<br /> ��
<br /> I; Texas Production Company Deputy,
<br /> li - I{'ees,�2.$�0 ,
<br /> ���
<br /> �'; ea �E 'n B`� OIL AND GAS MINING LEASE ea a o '53gT
<br /> ; �'�� � $ by .T.N. _ . �9�� �9� J. .N.
<br /> '! An reement, entered into this �$ day of �ebruary , 19 3� , between
<br /> ' Arthur C.Denman and Dora- Denman hie wife; Alda Nebraska .
<br /> ��
<br /> lessor (whether one or more), and TEXAS PRODUCTION COMPANY, a corporation organized under the laws of Colorado, lessee.
<br /> 1. Lessor, in consideration of the sum orTwenty �ight Doliars (� 2�•�� ), in hand paid, of f,he royalties herein provided
<br /> and the agreements of lessee herein contained, hereby grants, leases and lets exclusively unto lessee, for the purpose of testing by any method for forma.tions
<br /> i and prospecting and drilling for and producing oil and gas, laying pipe Iinea, building tanks, storing oil and building powers, atations, telephone lines
<br /> ;� and other structures (including houses for employees) thereon, to produce, save, take care of, Lreat and transport said products, the following described
<br /> land in Hal�. County, State of Nebraska, to-wit:
<br /> �; the south east qua.rter and �he south eaet qua.rter of the north east section 31, township 11
<br /> range 10 west; the gest half oP the south east quarter section 20, township 10 range 10
<br /> ; north, and containing 2�0 acres more or less.
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<br /> 2. Subject to the other provisions herein contained, this lease shall remafn in force for a term of�en years from this date (hereina,fter called "prImary
<br /> 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
<br /> in whole or in part.
<br /> 3. The royalties reserved by leasor, 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 a,t the wells of such one-eighth on the day it is run to the pipe line or storage tanks, lessor's interest fn 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 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 #hat I
<br /> if and when lessee shall sell gas at the wells lessor's royalty thereon s�all be one-eighth of the amount realized from auch sales. Lessee is hereby given the
<br /> 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 drilling operations are not commenced on said land o�r befp re�png,year fr4 m this date, thia lease s 1 the te��ate �s��t�p,�s, unless
<br /> ' lessee shall pay or tender to lessor or to the c edit o e ,�Q r in 1f lr$T 1VSTi14A&1 Bank at�r8S1� +.s�.aIIQj '1 bank f�i
<br /> iI� lessor's agent) the sum of Fourteen a.rl� AO���V Dollaxs ($ 1���� )
<br /> i� (hereinafter called "rentai"), which shall extend for six months the time within which drilling operations may be commenced. Thereafter, semi-a.nnually, in
<br /> like manner, and upon like payments or tenders, the commencement of drilling operations may be further deferred for periods of six months during the
<br /> I� primary term. The payments or tenders of rental may be made by the check or draft of lessee mailed or delivered to said bank on or before such date
<br /> ii of payment. Drilling operations hereunder sha.11 be deemed to be commenced when the first material is placed on the ground. Notwithetanding any devolu-
<br /> il tion, change or division in the ownership of said land, the payments or tenders of rental in the manner herein provided ahall 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 sha11 not
<br /> !! be held in default for failure to make such payments or tenders until thirty days after lassor shall deliver to lessee an instrument in writing duly
<br /> executed and acknowledged, naming another bank as agent to receive such payments or tenders. The down cash payment is conaideration for this lease
<br /> Ii according to its terms and shall not be alocated as mere rental for a period.
<br /> 5. If prior to the discovery of oil or gas on said land lessee should drill a dry hole or holes thereon, this lease shall not be terminated thereby if lesaee,
<br /> � Ii 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 thereof should cease from any cause, this Iease shall not be terntinated thereby if lesaee commences additional drilling
<br /> � �� operations within sixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rentals befpre 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 /> ) operations thereon, the lease shall 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 /> � jj 6. Lessee ahall have the free use of oil, gas, wood, coal and water from said land, except water from leseor's wells, for all operations hereunder; and the royalty on oil
<br /> and gas shall be in the net quantfty after deducting any so used for operations. Lessee shali have the right at any time during or after the expiration of this lease to remove
<br /> al�property and fixtures placed by lessee on said land, including the right to draw and remove all casing. When required by lessor, lessee will bury all pipe lines below
<br /> ' ordinary plow depth, and no well shall be drilled within two hundred feet of any residence or barn now on said land without lessor's consent. Lessor sha11 have the privilege,
<br /> � 1 at the risk and expense of lessor, of making connection and using gas from any gas well on said land for stoves and inside lighta in the principal dwelling on said land out ,
<br /> I Ij of any aurplus gas not needed for operatione hereunder.
<br /> N 4', 7. The rights of either party under this lease may be assigned in whole or in part and the provisiona hereof shall extend to the heirs, personal Tepresentatives, succeasora
<br /> J hali
<br /> � and assigns, but no eale or assignment by lessor s operate to enlarge the obligations or diminish the ri hts and Tivile es oY less . Should lessee asai t n
<br /> S' P € ee Bn his lease i
<br /> �� whole or in art lessor shall look solel to the assignee for erformance of its terms to th o si ne .
<br /> P Y P as e pasta s as g d No sale or asaignment by lesaor shall be binding on lessee
<br /> Ij Yor any purpose until lessee shall be furnished with an instrument in writing evidencing such sale or assignment. If lesaee asaign�s this lease in part, the obligation (if any
<br /> e exists) to pay rentals is appoi�tioned as between the several owners ratably according to the aurface area oY each, and default by one of them in the payxnent of rentals
<br /> �i shall not affect the validity of the lease on the portion oP land upon which pro rata rentals are paid or tendered.
<br /> (� 8. This lease ahall never be forfeited, cancelled, or terminated for failure by lessee to perPorm in whole or in part any of fts implied obligations, nor while oil or gas is
<br /> � �j being produced in paying quantitiea for any cause whatsoever, unless there shall first be a finai judicial ascertainxr�ent that such obligation or-cauae ex#sts and that lesaee �
<br /> is in default. Upon such final determination, lessee is hereby given a reasonabie time thereatter to comply with such obligation, or, at lessee's election, to sUrrender the
<br /> � �' lease, with the option of reserving, under the terms of this lease, each proflucing well and ten acres aurrounding it to be aelected by lessee. Lesaee shall not be liabie in (
<br /> �j damages Por breach of any implied obligation.
<br /> �i 9. If aix or more persons be or become entitled to royalties hereunder, they shall by sufficient written instrument designate some agent to receive payment for all,
<br /> and lessee ahali not be required to make payment until such instrument is furnished.
<br /> � 10. When drilling or oYher operations are delayed or interrupted by lack oE water, labor or material, or by fire, atorm, flood, war, rebellioi►, insurrection, riot, strike,
<br /> i differencea with workmen, or faiture of carriers to transport or furnish facilities for transportatfon or as a result of some order, requiaiCion or necessity of the goveTnment.
<br /> ! or as the result of any cause whataoever beyond the control of the lessee, the time of such delay or fnterruption ahall not be counted against leasee, 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) may pay discharge I
<br /> � !' ariy tazces, mortgages or other liens upon said land, and fn that event lessee shali be subrogated to such lien, with fuli right to enforce the same, and in additiq �Teto may
<br /> �I retain for the satisfaction of such lien and intereat all royalties or rentals accruing hereunder. If lesaor owns an fnteFest in said land lesa tliah the entire fe� � le eatate, I
<br /> then the royalties and rentals to be paid lessor shall be reduced proportionately. Shouid the right or interest oi lessee hereunder be disputed by leasor, or a.�y dt �} person,
<br /> the time covered by the pendency of such dispute shall not be counted against lessee either as affecting the ternx of the lease or the time for payme�#. of TCi�tals or
<br /> royalties or for any other purpose, and lessee may suspend a11 payments until there is a final adjudication or other determination of auch diapute.
<br /> (
<br /> IN WITNESS WHEREOF this instrument is esecuted on the da e ir above written. • • ,
<br /> d �, E �p
<br /> ii ����e19�$ bypI.E.L. D 3 R PT�O�& DATA ' - Arthur .Ct.Denman cs�� �
<br /> , �� emaa � Dora Denma�.n csEaL�.
<br /> �, �rl$ �� L�ssoR
<br /> �i Attest: (�''0� 'TEXAS PRODUCTION COMPANYe
<br /> ' J.O.Huclnall ��EA 3 sy A.R.Wilson
<br /> i Assistant Secretary. � Vice President
<br /> I � , LE�SE� �
<br /> �; STATE OF NEBFtASIfA,
<br /> ;� County of ji$11 � �g� �
<br /> i
<br /> On this 2$� day of F'ebruary , Y9 3� , before me, a Notary Pubiic, in and for said County, personally came the above named
<br /> �i Artk�ur Q.Denman and DOTa DCAiQa21 , his wife, who are personally known to me�to be the identical
<br /> ;
<br /> �; persons whose names are affixed to the above instrument as lessors, and they each acknowledged said instrument to be their voluntary act and deed.
<br /> � Witness my,hand and Notarial Seal the date last aforesaid.
<br /> ;j (BEAL) fR.R.Ellis �
<br /> + Notary Public. ,
<br /> i' My commission expires on the �],6th day of �&rC71 , ie 35 . �
<br /> (
<br /> ! STATE OF COLORADO,
<br /> ss.
<br /> I City and County of Denver,
<br /> � On thia 2g day of Mareh , 19 3� before me, a Notary Public, in and for said County,personally came the above na,med i
<br /> �.R.��ZBOII , Vice President and J.�.�uC�Tlall ' ' Assista,nt Secretary of said Texas Production-Company, who �
<br /> (, are personally known to me to be the identical persons whose names are affixed to the above instrument as Vice �resident and ,Assistarit Seesretary of said
<br /> i� corporation, and they acknowledged the instrument to be their voluntary act and deed and the volunta,ry act and dsed of said corporation.
<br /> �� Witness my hand and Notarial Seal the date laet aforesaid. (gEAL) Joha �'.IQ�$'CTOID
<br /> �i Z otary Public.
<br /> M commission ex ires on the 30 day of October . 18 3J. �
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