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FL...-.S21IE..iDUENAL GOMPANY LINCO .. �_ .__... ..._.. .__._ . ...,___-..r-'.�.__'_-_.-._.._�. �_ <br /> STATE OF NEBRASSA,� <br /> From Hall County, ss. <br /> , <br /> � John H.G�rdes and wife <br /> ' I hereby cer•tify that this instrumer��t was filed for record in my office <br /> i' - at 9 dcl,ncic A. �i., Octob�r l�j 19 3Q , and is <br /> ;� dul.� recorded in book Q page 7$` . <br /> I '' ! <br /> ��� Register of Deeds <br /> To B✓ � <br /> ' Texas Production Company De ut2. � <br /> p J <br /> �� - � Ti'ees,$ 2.SO � <br /> �; Lea�r �°on�5� D GAS MINING LEAS�N�B�'s�" � ea a N .0g 55 <br /> !�- E��-7 a19-z p bt�°JkT� N, ' . �� . ���� �9�� bY .T.N. <br /> �; � r A h J A g r e e Y nen t, en�ere d in to t his 5 t h day o g M arc h , 1 9 7�� > be tween <br /> �i; John H.Gerdes and Myrtle B.Gerdes his �ife;Dani�han Nebraska <br /> ��� lessor (whether one or more), and TEXAS PRODUCTTON COMPANY, a corporation organized under the laws of Colorado, lessee. <br /> ; <br /> (� 1. Lessor, in consideration of the sum of For�y Dollars ($ �-�•�� ), in hand paid, of the royaities 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 lines, building tanks, storing oil and building powers, stations, telephone lines I <br /> and other atructures (including houses for employees) thereon, to produce, aave, take care of, Lreat and transport said products, the following described <br /> y�� �' land in Hall County, State of Nebraska, to-wit: <br /> the north west quarter section 20; �he north half of the north h�lf section 1�; the south <br />"j0� .� j; half of the south east a,uarter section 1�; all in to�nship 9 north,range 10 �aest and contain- <br /> N in� in all �00 acres niore or l�ss. � � <br /> � <br />� �; <br />�� i <br /> �i <br />�� �I' - . . . . . I <br /> 1 1�� <br />� 2. Subject to the other provisions herein contained, this lease shall remain in force for a term of ten years from this date (herefna.fter called "primary <br /> � ' term") and as long thereafter as either oil or gas is or can be produced from any weli on said land,• however, lessee a� any time may release this lease <br /> ' in whole or in part. � <br /> ; <br /> 3. The royalties reserved by lessor, and which shadl be paid by lessee, are (a) on oil, one-eighth of that produced and saved from said land, the salne <br /> > to be delivered at the wells or to the credit of lessor in the pipe line to which the wells may be connectied, or, at the option oP the lessee, from time ta <br />�' � ; time, the market price at the wells of such one-eighth on the day it is run to the pipe line or storage tanks, leasor's interest in either case to bear its <br /> �li proportion of any expense of treating unmerchantable oil to render it merchantable as crude, and (b) on g�s 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-efghth of the gas so 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. Lessee is hereby given the <br /> i option of purchasing all or any part of said royalty rights from the leseor at the best bona fide price offered by responsible third parties when and if <br /> offered for sale or transfer by lessor. <br /> I 4. If drilling operations are not commenced on said land on or before one ear from this date, this lease shall then terminate as to both parties, ualess <br /> ; lessee shall pay or tender to lessor or to the credit o lessor in $&T1�C O� 1�oniphan B�k ac Doniphan Neb 8 (which bank is <br /> lessor's agent) the sum of Tvaent� and 110���� -� — � — — -- — — — — — — — — — — — —Dollaxs ($ �� �� ) <br />� � � (hereinafter called "rental"), which sh 1 extend for aix 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 driiling operations may be further deferred for periods of aix months during the � <br /> ; primary term. The payments or tenders of rental may be made by the check or draft of lessee mailed �r delivered to s�id bank 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. Notwithsta#ding any devolu- <br /> tion, change ar division in the ownership of said land, the payments or tenders of rental in the manner herein provided aha11 be biading on the suCCessors, <br /> I assigns or legal representatives of lessor. If such bank (or any successor bank) should fail, liquidate or be succeeded by another bank, 1QSgee shail not <br /> �, be held in default for failure to make such payments or tenders until thirty days after lessor shall deliver to lessee an instrument fn writing duly <br /> executed and acknowledged, naming another bank as agent to receive auch payments or tender�. The down cash payment is conaideration for this lease <br /> I 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 /> � before the next ensuing rental paying date, commences further drilling operations or commences or resumes the payment or tender of rentals. Tf 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 /> i operations within sixty days thereafter or (if it be within the primary term) commences or resumes the payment or tender of rentals before 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 fs 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 ofl or gas, so long �I <br /> � � thereafter as oil or gas is or can be produced from any well on said land. I <br /> � i 6. Leasee shali have the free use of oil, gas, arscl, � and water from said land, except water from lessor's welis, for all operations hereunder, and the royalty on oil � <br /> � I and gas sha11 be in the net quantity after deducting any so used for operations. Lessee ahall have the right at any time during o1r after the espiration Uf this lease to remove I <br /> I; all property and fixtures placed by lessee on said land, including the right to draw and remove all casing. When required by les8or, le8see will bury ail pipe lines below <br /> ordinary plow depth, and no well shall be drilled within two hundred feet of any residence or barn now on sald land without lessor's consent. E,easor shall hav8 !he pFivilege, I <br /> i� at the risk and expense of lessor, of making connection and using gas from any gas weil on said land for stoves and inaide lights in the principal dweliing on said land out <br /> � of any aurplus gas not needed for opeTations hereunder, , <br /> �� 7. The rights of either party under this lease may be assigned in whole or in part and the proviaions hereoL shall extend to the heirs,peraonal repreaentarives, auccessors I <br /> � ;� and assigns, but no sale or assignment by lesaor shall operate to enlarge the obligations or diminish the rights and privileges of lessee. Should lessee assign this lease fn <br /> whole or in part lessor shall look solely to the asaignee for performance of itg terma as to the parts ao assigned. No sale or asxign�ent by leasor shall be binding on lesaee � <br /> �j for any purpose until lessee ahall be furnished with an inatrument in writing evidencing such sale or assignment. If leasee assfgns this lease dn part, the obligation (if any <br /> I exists) to pay rentals is apportioned as between the aeveral owners ratabiy according to the surface area of each, and default by one of them fn the payment oi reatals II <br /> � � ahall not affect the validity of the lease on the portion oP land upon which pro rata rentais are paid or tendered. <br /> N �1 8. This lease ahall never be forPefted, cancelled, or terminated for fa.fiure by lessee to perPorm in whole or in part anq of its ianpifed oirligations, nor while oii or gas is <br /> being produced in paying quantities for any cause whatsoever, unless there shall ffrst bo a final judicial ascertainment that such obligation or cauae exi8tg and that lessee � <br /> II is in defanit. Upon such Yinal determination, lessee is hereby given a reasonable time therealter to comply with such obiigation, or, at lessee's eleefion, to surrender the <br /> lease, with the option of reaerving, under the terms of this lease, each producing qrell and ten acrea aurrounding it to be aeleeted by lesaee. Lessee shall not be liable in <br /> ! damagea for breach of any implied obligation. <br /> 1' 9. If six or more peraons be or become entitled to royaltiea hereunder, they ahall by sufficient written instrument desSgnate aome agent to receive payment for all, <br /> �� and leasee ahall not be required to make payment until such instrument is furnished. <br /> i S0. When drillfng or other operations are delayed or fnterrupted by lack oE water, labor or material, or by fire, storm, fiood, war, rebellion, inaurrection, riot, strike, <br /> , � differences with workmen, or failure of carriers to transport or furnish facilities for transportation or as a result of some order, requiaition oF necessity o! the gpvernment, <br /> � or as the result of any cause whatsoever beyond the control of the lessee, the time of such delay or fnterruption shall not be counted against leasee, anything in thi� lease to <br /> j the contrary notwithstanding. <br /> ; 1L 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 and discharge " <br /> ariy taxes, mortgagea or other liens upon said land, and in that event lessee sha11 be subrogated to auch lien, with fuil right to enforce the same, and in additioa thereto may <br /> � retain for the satiafaction of such lien and interest all royalties or rentals aceruing hereunder. If leasor owns an interest in said land lesa than the entire fee aimple eatate, <br /> i then the royalties and rentals to be paid lessor ahall be reduced proportionately. Should the right or interest pi lessee hereunder be diaputed by lessor, or any other person, � ' <br /> the time covered by the pendency of such dispute ahall not be counted against lessee either as affecting the term oY the lease or the time for payment of rentals or <br /> royalties or for any other purpose, and lessee may suspend all payments until there is a final adjudication or other determinaiion o! such diapute. -- <br /> � � V�ITNESS_WHEREOF this instrument is esecuted on the date first above written. <br /> ' p�� el �0 bap APP�OVED AS T0 . John H.Gerdes �STi,AT,� �� <br /> ! 3- 7- 93 Y T.E. L. DESCRIPTION &, DATA <br /> �� l�yrtle B.Gerdes �sE�,1 I <br /> �`F�$���eman � I <br /> j± L�ssoR <br /> i; Atteat: � �Rp) TEXAS PRODUCTION COMPANY, ! <br /> �, J.C.Hud21a.11 .�asistant �seF•taAL) By A.R.Wi 18oI1 � �, <br /> � Vice President <br /> !� LESSEE � <br /> �'� STATE OF NEBRASKA, � , <br /> �i County of �a•11 �s' � ��� <br /> �� On this 5 day of �Ch , 19 � , before me, a Notary Public, in and for said Count � <br /> �J y, personally came the above named , <br /> I+ J o hn H.G e r de s and My r t 1 e H.Ge r de s , his wife, who are personally known to me to be the ident'icai <br /> ji persons whose names are affixed to the above instrument as lessors, and they each acknowledged said instrument to be their voluntary act and deed. � <br /> ;j Witness my hand and Notarial Seal the date last aforesaid. �sEAL� Be8 S e L.Gi deon il <br /> �� Notary Public. � <br /> iMy commission expires on the 7j day of DeC. , lg�j� , j� <br /> �� STATE OF COLORADO, +� � <br /> �' City and County of Denver, �' ss. � �i <br /> �I <br /> On this 2$� day of Mar eh , 19 0 , before me, a Notary Public, in and for said County, persottally eame the above named `� <br /> I A.R.Wilson , Vice President and �•C.HuC�Tlall 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 Vfce PresidenE and A9si�9tant Secretary of aaid � <br /> corporation, and th�y acknowledged the instrument to be their voluntary act and deed and the voluntary act and deed of said corporation. � <br /> (i Witness my hand and Notarial Seal the date last aforesaid. (SEAL) John T.N gtr0 <br /> ' - Notary Publi� <br /> � My commisaion expires on the �i0 dav af <br />. i� . .. . ., . . , <br /> I <br /> ... ___-. . .. I : <br />