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<br /> STATE OF NEBRASgA,� '
<br /> I, From Hall County, �S'
<br /> !; Julius Schuett and wife
<br /> �; I hereby ce�rtify that this instrumer��t �.twas filed for recor'd in my office
<br /> il - at gi o'cl,nc7c A�Vi., M8y 2� 19 �0 , and is
<br /> �,' duly recorded in book N QN page (� . �
<br /> {j I�eqister o�f e'd8
<br /> Ij To B�
<br /> ,;
<br /> ! Texas I�roduction Company Deputy.
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<br /> i� . I�'ees,�2.6�j
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<br /> ��i � �E sn�-��A� OjL AND GAS MINING LEASE � �e��Q�, -532
<br /> i� � - ���� ���v �v �.T.N! . 3 � � t3�'�� J.T .
<br /> �iAn Agreement, ent�red into this 2 day of Feb� , �9 �� , between
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<br /> h'� Juliue 8chuett and Aa►anda, Behuett,bia �ife
<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 of �e1V8- Dollars (� �•2•� ), in hand paid, of the royalties herein provided
<br /> , and the agreements of lessee herein conta.ined, hereby grants, leases and lets exclusively unto lessee, for the purpose of testing by any method for forma:tiona
<br /> �� and prospecting and drilling for and producing oil and gas, laying pipe lines, building tanks, storing oil and building powers, atationa, telephone linea
<br /> I( 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 �a�.l County, State of Nebraska, to-wit:
<br /> � �I l�est Half of North Esst Quarter and 9outh Eaet Quarter of Aorth �Pest Quarter Se�tion 27
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<br /> Tounehip Twelve North Range �lenen west eontaining 120 acres more or lese.
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<br /> - � � 2. Subject to the other provisions herein contained, this lease shall remain in force for a term of ten year�from this date (hereinafter called "prim&,ry
<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. �he royalties reserved by lessor, and which shall be paid by leasee, are (a) on oil, one-eighth of that produced and saved from said land, the same
<br /> � to be delivered at the cvelis or to the credit of lessor in the pipe line to which the wells may be connected, or, at the optioa of the lessee, from time to
<br /> ; time, the market price st the wells of such one-eighth on the day it is run to the pipe line or storage tanka, lessor's interest fn either case to bear its
<br />, � proportion of any expense of treating unmerchantable oil to render it merchanta.ble as crude, and (b) on gaa produced from said land and sold or used off
<br /> h land h a ' lu in asin head h mark ri a h
<br /> t e or in t e ma,nufacture of g soline, inc d g c g gas, t e et p ce t t e well of one-eighth of the gas so sold or used, provided that
<br /> i 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. Lessee is hereb iven the
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<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 /> I . offered for sale or transfer by lessor. '
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<br /> i 4. If drilling operations are not commenced on said land on or before on year from this date, this lease shall then termiaate as to both parties, unless
<br /> i lesaee shall pay or tender to lessor or t-th�cr=dit of les=or in Q'��,'t@ �gji�`of Cairo Bank at Qgj,TO �@b• (which bank ig
<br /> lessor's agent) the sum of gia ^� — + + — �- �— — — — — — Dol�ars ($ 6•� )
<br /> (hereinafter called "rental"), which shall extend for aix months the time within which drilling operations may be commenced. Thereafter, semi-annuall , in
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<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 /> �!, primary term. The payments or tenders of rental may be made by the check or draft of lessee mailed ur delivered to said ba.nk on or before such date
<br /> �� of payment. Drilling operations hereunder shall be deemed to be commenced when the first material is placed on the ground. Notwithetanding any devolu-
<br /> I! tion, change or division in the ownership of said land, the payments or tenders of rental in the manner herein provided shall be binding on the successors,
<br /> ;� assigns or legal representativea of lessor. If such bank (or any auccessor bank) should fail, liquidate or be succeeded by another bank, lessee shall not
<br /> � be held in default for failure to make such payments or tenders until thirty days after lessor aha.11 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 considerakion for this lease
<br /> �j 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 lessee,
<br /> Ibefore the next ensuing rental paying date, commences further driiling 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 lease shall not be terminated thereby if lessee commences additional drilling
<br /> �� operations within �ixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rentals before the negt
<br /> �; ensuing renta.l 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 oii or gas, so long
<br /> tV I thereafter as oil or gas is or can be produced from any well on said land.
<br /> � � 6. Lessee ahall have the free use of oil, gas, wood, coal and water from said land, except water from Ie,ssor's wells, for all operations hereunder, and the royalty on oil
<br /> � �; 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 espiratfon o!this lease to x`emove
<br /> � al� property and fixtures placed by lessee on said land, including the right to draw and remove all casing. When required by lesaor, leasee will bury all pipe linea below
<br /> � ordinary plow depth, and no well shall be drilled within two hundred feet of auy residence or barn now on said land without lessor'a consent. Lesaor shall have the privilege,
<br /> at the risk and expense of leasor, of making connect3on and using gas from any gas well on said land for stoves and inside lights in the principal dwelling on aaid land out
<br /> i of anq aurplus gas not needed for operations hereunder.
<br /> ?. The rights of either party under this lease may be assigned in whole or fn part and the provisions hereof shall extend to the heira, personal representatives, aucceasors
<br /> I and assigns, but no eale or assignment by lessor shali operate to enlarge the obligations or diminish the rights and privileges of lesaee. Should leasee assign this lease in
<br /> � I whole or in part lessor shali look soleIy to the assignee for performance of its term8 as to the parts so assigned. No sale or assignment by lesaor aha11 be binding on lessee
<br /> � for any purpose until lessee ahall be furnished with an instrument in writing evidencing such sale or assignment. If lessee asaigna this lease in part, the obligafion (if any
<br /> exiats) to pay rentals is apportioned as between the aeveral owners ratably accordIng to the surface area of each, and dePault by one of them in the payment o! rentals
<br /> � ahall not affect the validity of the lease on the portion of land upon which gro rata rentals are paid or tendered.
<br /> j 8. This leaae shall never be forfeited, cancelled, or terminated for failure by lessee to perform in whole or in part any of its implied obligations, nor while ofl or gas ie
<br /> N being produced in paying quantities for any cause whatsoever, unless there shali first be a final judicial ascertainnient that auch obligatlon or cauae exists and that lesse8
<br /> is in default. Upon auch final determination, lessee is hereby given a reasonable time therealter to comply with such obllgation, or, at lesaee's election, to surrender the
<br /> lease, with the option of reservmg, under the terms of this lease, each producing well and ten acres surroundfng it to be aelected by lessee. Lesaee ahall not be liable in
<br /> damages for breach of any implied obligation.
<br /> i 9. If six or more persons be or become entitled to royalties hereunder, they ahaii by sufficient written instrument deaignate some agent to receive payment for a11, '
<br /> � and lessee shall not be required to make payment until such instrument is furnished.
<br /> 10. When drilling or other operations are delayed or fnterrupted by lack of water, labor or material, or by fire, atorm, flood, war, Tebellion, ittaurreCtion, riot, strike,
<br /> i differences with workmen, or failure of caxriers to transport or furnish facilities for transportation or as a result of some order, requisitlon or necessify oi the government>
<br /> � or as the result of any cause whatsoever beyond the control of the lessee, the time of such delay or interruption ahall not be counted against lessee, anything in this lease to
<br /> � �j fhe contrary notwithatandfng.
<br /> 11. Lessor hereby warrants and agrees to defend the title to said land and agrees that iessee, at lesaee's option (but without any duty to flo ao), may pay and diecharge
<br /> aify taxes, mortgages or other liens upon said land, and in that event lessee shall be subrogated to such ifen, with full right to enforce the same, and in addition thereto may
<br /> retain for the Datisfaction of such lien and interest all royaltiea or rentals accruing heFeunder. If lessor owns an interest in said land less than.the entlre fee simple e8tate,
<br /> � then the roya,lttes end rentals to be paid lessor shail be reduced proportionately. Should the right or interest of lessee hereunder be di8puted by lessor, or any other person,
<br /> the time covered by the pendency of such dispute ahall not be counted againat lessee either as affecting the term of the lease or the tfine !or p$yment oY rentals or
<br /> j royalties or for any other purpose, and lessee may suapend all payments until there is a final adjudication or other determination of such dispute.
<br /> �' IN WITNESS WHEREOF this instrument is ex t1 d te f above written. � , .
<br /> � � p D� H � p�JB��pTp . Julius Schuett cSEAL}
<br /> l; �� � O��y�.R;L. jR�► 7�F rerrrro�t A�8�1�8 9Cbu�fi�t '
<br /> � � . . �s�w�
<br /> � �� � � , L�SSOA
<br /> li Attest: SCO� TEXAS PR DUCTION COMPANY,
<br /> J.C.Hudaall `���L� sy A.�.1�ilson
<br /> i Aaeistant Secxetary. �� Vice President
<br /> � � � � LE$SEE
<br /> I STATE OF NEBRASKA,
<br /> i County of �11 � ��'
<br /> � On this 2� day of Februa.ry , 19 �� , before me, a Notary Fublic, in and for said County, persona,lly came the above named +
<br /> �� Juliue sCYlU.@t� and Aa►a,nda 9ehuett , his wife, who are personally known to me to be the identical
<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 /> li Witness my hand and 1Votarial Seal the date last aforesaid. ���j�� �.�.���Ag�a ,
<br /> i Notary Public. I
<br /> My commission expires on the 20 day of Jul� , 19 31 ,
<br /> STATE OF COLORADO,
<br /> � ss.
<br /> City and County of Denver,
<br /> On this 2� day of Mareh , 19 3� before me,a Notary Public, in and for said County,personally came the above na,med
<br /> � �rR.�f�.$01� , Vice President and J.�+•H1lf�A81�. Assistant Secretary of said Texas Production Company,-who
<br /> are personally known to me to be the identical persons whose names are affixed to the above instrument as Vice President and A.ssistant Secretary-oP s81d i
<br /> corporation, and they acknowledged the instrument to be their voluntary act and deed and the voluntary act and deed of said corporation. '
<br /> Witness my hand and Notarial Seai the date last aforesaid. �s�� John �.�y$�'rT�2ia �'
<br /> Notary Public.
<br /> M commission expires on the � da of �Q�4b6T 18 '
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