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<br /> _ _ —___.-----____.. - —.-_---_._____�
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<br /> � STATE OF NEBRASSA,)
<br /> From Hall County, �t ss. �
<br /> Ja�nes A.Sprague 8Ad �I�f@ I hereb� certify tlLat this instrumer��t uas filed for record in my office
<br /> . at $� dcl,ncic A.b�1., Y8,�1 2� 19 30 , and is
<br /> dul� reco�°ded in book �(�N page ( • �
<br /> Register o D d � '
<br /> To B� �
<br /> Texas Production Company Deputy. �
<br /> . I+'ees,�2.8'0
<br /> ea e . N- OIL AND GAS MINII�TG LEASE �6n al -$Q•o '533 �
<br /> . �r RaBH��T N . . .3�f1� 19 O y J.T.N.
<br /> �� �d into this da of , �9 3 , between
<br /> �'igree�ment, extter �7 y -February �
<br /> Jamee A.Sprague and Amelia 8pra$ue,hie wif�
<br /> Iessor (whether ons or more), and TEXAS PRODUCTION COMPANY, a corporation organi1z�ed under the laws of Colorado, lessee.
<br /> 1. Lessor, in consideration of the Sum ofTwentq f Qur pollars ($ 2`'�'•�0 ), in hand paid, of the 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 a.ny method for formations
<br /> . 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 housea for employees) thereon, to produce, save, take care of, treat and transport said products, the following deacribed
<br /> land in �Sl�. County, State of Nebrask�,, to-wit:
<br /> Sou�h Eaet Quarter Section Twenty T�wc�; 8outh Half 9outh Esst Quarter Seotion Twent� Three
<br /> To�vnship �leven North Range Eleven �Iest and conta.ining 240 acres more or less.
<br /> �
<br /> �
<br /> 2: Subject to the other proviaions herein contained, this lease shall remain in force for a term of ten years from thia date (hereinafter called "primarp
<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 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 tanka, 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 land or in the manufacture of gasoline, including casinghead gas, the market price at the well of one-eighth of the gas ao sold or used, provided that
<br /> if and when lessee shall sell gas at the wells lessor's royalty thereon shall be one-eighth of the amount realized from such sales. Lesaee 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 onp� b fo,�eq�e ga� this date, this lease sh then e�te t b h parties, unless
<br /> Iessee shall pay or tend,.er to�essor or to the credit of lessor in r-i�BT 1�Q�lo��� Bank at �r�� +ay��2��� (which bank is
<br /> lessor's agent) the sum of TA'e19C � � "' " � — � " " � � ' � � � � — — � � — — �' Dollars ($ • )
<br /> (hereinafter cailed "rental"), which shall extend for six months the time within which drilling operations may be commenced. Thereafter, semi-annually, 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 /> prima,ry 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 auch date �+
<br /> of payment. Drilling operations hereunder ahall 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 tenders of rental in the ma.nner herein provided shall be binding on the succeasora,
<br /> assigns or legal representatives of lessor. If such bank (or any successor bank) should fail, liquidate or be succeeded by another bank, lessee ahall not �
<br /> be heid 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 /> executed and acknowledged, naming another bank as agent to receive auch payments or tenders. The down cash payment is consideration for thia leaae (�
<br /> according to its terms and ahall 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 lessee, U
<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 thereof ahould cease from any cause, this lease shall not be terminated thereby if lessee coma�ences additional drilling
<br /> operations within aixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rent8ls before the negt
<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 gaa, so long �
<br /> thereafter as oil or gas is or can be produced from any well on eaid land.
<br /> 6. Lessee ahall have the free use of oil, gas, wood, coal and water from said land, except water Prom lessor's wells, for all operationa hereunder, and the royalty on oII g
<br /> and gas aha11 be in the net quantity after deducting any so used for operations. Lesaee ehall have the right at any time during or after the expiration of thia leasa to remove '�1
<br /> a11 property and fixtures placed by lesaee on aaid land, including the right to draw and remove all casing. When required by lessor, lesaee will bury all pipe linea below
<br /> ordinary plow depth, and no well ahall be drilled within two hundred feet of any reaidence or barn now on said land without lessor's consent. Lesaor shall have the privilege,
<br /> at the riak and expense of leasor, of making connection and using gas fTOm any gaa well on aaid land for atoves and fnside lighta in the principal dwelliag 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 shall extend to the heirs, personal representative8, succeasors
<br /> and assigns, but no sale or assignment by lessor shali operate to enlarge the obligations or d'uninish the rights and privileges ot lessee. Should leasee asaign this lease in
<br /> whole or in part lessor shall look aolely to the assignee for performance of ita terms as to the parte so asaigned. No sale or assignment by lesaor aha11 be binding on leesee
<br /> Eor any purpose until lessee ahall be furnished with an instrument in writfng evidencing such sale or assignment. If lessee assigns this lease in part, the obligation (if any
<br /> exists) to pay rentals fa apportioned as between the aeveral ownera ratably according to the aurface area of each, and default by one of them in the payment oi rentale
<br /> ahall not sYfect the validity of the lease on the portion of land upon which pro rata rentals are paid or tendered.
<br /> 8. This lease xhall never be forfeited, cancelled, or terminated for failure by lessee to perform in whole or in part any of its implied obligatione, nor while oil or gas is
<br /> be4ng produced in paying quantities for any cause whatsoever, unlesa there shall first be a final judicial ascertainment that such obligation or causo esists and that lesaee
<br /> is in default. Upon such Yinal determination, lessee is hereby given a reasonabie time thereafter to comply with such obligation, or, at lesaee's election, to surrender the
<br /> lease, with the option of reserving, under the terms of thie lease, each producing well and ten acres aurrounding it to be aelected by leasee. Lessee aha11 not be liable in
<br /> damages for breach of any implied obligation.
<br /> 9. Ii six or more peraons be or become etttitIed to royaities hereunder, they shall by sufficient wriYten instrument designate some agent to receiva payment for atl,
<br /> and lessee aha11 not be required to make payment until such instrument is furnished.
<br /> 10. When drilling or other operations are delayed or interrupted by lack of water, labor or material, or by fire, atorm, flood, war, rebellion, insurrection, riot, atrike,
<br /> differences with workmen, or failure of carriere to transport or furnish Pacilities for transportation or as a result of somB order, requisition or necesaity of the g'overnment,
<br /> or as the reault 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
<br /> , the contrary notwithstanding.
<br /> 11. Lessor hereby warrants and agreea to defend the title to said land and agrees that lessee, at lessee's option (but without anY duty to do so), maq pay and diacharge
<br /> atiy taxes, mortgages or other liens upon sr�id 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 /> retain for the satisfaction of auch lien and intereat ali royalties or rentals accruing hereunder. It lesaor owns an interest in sa,id la.nd less than the entire fee gimple eatate,
<br /> then the royalties and rentals to be paid lessor aha11 be reduced proportionately. 3hould the right or interest of lessee hereunder be diaputed by leasor, or any other person,
<br /> the time covered by the pendency of auch dispute ahail not be counted against lessee either as a.ffeetittg the term oE the lease or the time for payment of rentals or
<br /> royalties or for any other purpose, and lessee may auspend all paymente until there ie a final adjudication or other determination oi such diepute.
<br /> IN WITNESS WHEREOF this instrument is executed on the at rst above written. ' - • '
<br /> p tCd M$ �ppgQ q� p� (SEAL)
<br /> o P � James A.S r e
<br /> r�(-19�� b I.�.L. DESCRIPTIO� & D��A - P � ,
<br /> 3 � T F �' eman Amelia 8prague �g��
<br /> �/i�'��o �ssoR
<br /> Attest: TEXAS PRODUCTION COMPANY,
<br /> J.c+.Hud1181I �$��� - By A.R,W�1$�A � Vice Preaident
<br /> �,.,� Assistant Secretary. LESS�E
<br /> . ;{ �
<br /> . '��r,
<br /> TATE OF NEBRASKA
<br /> s ,
<br /> ��2
<br /> 89. ���
<br /> County of $�,11_ � 0 o aid ount ersonall came the above named !
<br /> On this 2� day or Februar� , 19 3 , before me, a Notary Public, in and f r s C y, p y
<br /> J8.ID6$ A.8pr#�gue and �1it31�8 Bprague , his wife, who are personally known to me to be the identical
<br /> persons whose names are affixed to the above instrument as leasors, and they each acknowledged said instrument to be their voluntary act and deed.
<br /> Witness my hand and,Notarial Seal the date last aforesaid. �•$.8oreneen
<br /> C;�f�L� Notary Public.
<br /> My commiesion expirea on the 2a, day of J111� , lg 31 ,
<br /> STATE OF COLORADO,
<br /> � as.
<br /> City and County of Denver,
<br /> On this 2� day of �rCh , 19 �� , before me, a Notary Public, in a.nd for said County,personally came the above named
<br /> A.R.��180T1 , Vice President and J.G.�uC�Ilal�. Assistant Secretary of said Tesas Production Compaay, who
<br /> are personally known to me to be the identical persons whose names are affixed to the above instrument as Vice President and Assistant Secretary of said
<br /> corporation, and they acknowledged the instrument to be their voluntary act and deed and the volunta,ry act and deed of said corp�7rOa�tin �,•��Q,�T01D
<br /> Witness my hand and Notarial Seal the date last aforesaid. �� j�
<br /> �$�'�L� Notary Publie,
<br /> M commission ex ires on the 3� da of Oetober , 19
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