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<br /> ��f���'����1�;��� � �'���� �
<br /> STATE OP NEBRASgA,)
<br /> From Hatt Count�, 1� S��
<br /> Andrew �.Farabee and �vife
<br /> I hereby certif� that tliis instrumer��t was filed for record in my office
<br /> . at 9 o'c�oc�c A, ai., October 15, 19 �j0 , and is
<br /> dul� recorded in boolc (y� page 79 . �
<br /> ' Register o f De'f(�d
<br /> To B�
<br /> Texas Production Company Deputy.
<br /> . I'ees,�2.95
<br /> Le�e No�. H S�EXA$ COMI�A�IL A.ND CiAS MINING LEAS���ST�A Lease No.N 554
<br /> E r i(�n �o k 3�17a�939 bY J.T AT
<br /> � ���� ��jt�gre�e7nen�,'en�ex�°ed into this 5'��1 day of �a,rch � , 19 30 , betweea
<br /> Andrew F.Farabee and Sarah Farabee his wife; Doniphan,Nebraska.
<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 Forty el��l'� Dollars ($ ��.�� ), in ha,nd paid, of the royalties herein provided
<br /> and the agreements of lessee herein contained, hereby grants, leases and lets exclusively unto lesaee, for the purpose of testing by any method for forma.tions
<br /> and prospecting and drilling for and producing oil and gas, laying pipe linea, building tanks, storing oil and building powers, stations, telephone lines
<br /> and other atruetures (including houses for employeea) thereon, to produce, save, take care of, treat and transport said products, the following described
<br /> land in �al�- County, State of Nebraska, to-wit:
<br /> the south west quarter section 22; the south east qu�,rter section 2I; the west ha.lf of the
<br /> south east quarter and the e�.st half of the south west auarter section 16 , township 9 north
<br /> r�,nge 9 west anc� containing ��0 acr�s more or less
<br /> 2. Subject to the other provisions herein contained, this lease shall remain in force for a term of ten years from this date (hereinafter calied "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 shali be paid by lesaee, are (a) on oil, one-eighth of that produced and saved from said land, the same
<br /> to be delivered at the vvells 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 so sold or used, provided that
<br /> if and when lessee shall seil gas at the weils lessor's royalty thereon shall be one-eighth of the amount realized from such 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 on or before one year from this date, this lease shall then terminate as to both parties, unless
<br /> lessee shall pay or tender to lessor or to the credit of lessor in/$�k_Of Doniphan Bank at Doni han,Ne e. !�(which bank fa .
<br /> lessor's agent) the sum of Twentiy-f our and no 1 �- — — — — — -� — — — — — — �ollars ($ �.�U )
<br /> (hereinafter called "rental"), which shal 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 /> prima,ry term. The payments or tenders of rental may be made by the check or draft of lessee mailed ur delivered to said bank on or before auch date
<br /> of payment. Drilling operations hereunder shall be deemed to be commenced when the first material is placed on the ground. Notwithstanding any devolu- �
<br /> tion, change or division in the o�vnership 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 a.ny successor bank) should fail, liquidate or be succeeded by another bank, lesaee sha11 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 in writing duly
<br /> executed and acknowledged, naming another,bank as agent to receive such payments or tenders. The down cash payment is consideration for this lease
<br /> � according to its terms and shall not be alocated as m�re 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 /> 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 a.ny cause, this lease shall not be terminated thereby if lessee 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 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 gas, ao long
<br /> thereafter as oil or grzs is or can be produced from any well on said land.
<br /> 6. Lessee shall have the free use oE oil, gas, wood, coal and water irom said land, except water from lessor's wells, for all operations hereunder, and the royalty on oll �
<br /> and gas shall be in the net quantity after deducting any ao used for operations. Lessee shall have the right at any time during or after the expiration oY this lease to remove
<br /> all property and fixtures placed by leasee on said land, including the right to draw and remove all casing. W1ien required by lessor, lessee will bury all pipe lines below
<br /> , ordinary plow depth, and no well sha11 be drilled within two hundred feet of any residence or barn now on said land without lessor's consent. Leasor shall have the privilege,
<br /> - at the risk and expense of lessor, of making connection and ueing gas from any gas well on said land for stoves and ineide lights in the principal dwelling on said land out
<br /> of any surplus gas not needed for operationa hereunder.
<br /> 7. The rights of either party under this lease may be assigned in whole or in part and the provisions hereoP shall extend to the heirs, personal representative9, successors
<br /> sxnd assigns, but no sale or assignment by lessor shall operate to enlarge the obligations or diminish the rights and privileges of lessee. Should leasee assign thia lease in
<br /> n
<br /> i�hole or in part lessor shall look aolely to the assignee for performance of its terms as to the parts ao asaigned. No sale or asaignment by leasor shall be binding on esaee
<br /> for any purpose until lessee ahall be furnished with an instrument in writing evidencing such sale or assignment. If lessee assigns this lease in part, the obligation (if any � '
<br /> exists) to pay rentals is apportioned as between the several owners ratably according to the surface area of each, and default by one of them in the payment of rentals
<br /> shall not affect the validity of the lease on the portion of land upon which pro rata rentals are paid or tendered.
<br /> 8. Thie lease ahall never be 4orfeited, cancelled, or terxninated for failure by lessee to perform in whole or in part any of its implied obligations, nor while oil or gas is �
<br /> being produced in paying qua.ntities for any cause whatsoever, unless there shall first be a final 3udicial ascertainment that such obligation or cause exists and that lessee �
<br /> is'in default. Upon such Yinal determination, lessee is hereby given a reasonable time thereafter to comply with such obligation, or, at lessee's election, to surrender the
<br /> lease, with the option of reaerving, under the terms of this lease, each producing well and ten acres surrounding ft to be selected by lessee. Lesaee ahall not be liable in
<br /> dama,ges Eor breach oE any implied obligation.
<br /> 9. If aix or more peraons be or become entitled to royalties hereunder, they shall by sufficient written instrument designate some agent to receive payment for all,
<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 interrupted by lack of water, labor or material, or by fire, atorm, flood, waa, rebeliion, insurrection, riot, atrike, I
<br /> differences with workmen, or failure oY carriers to transport or furnish facilities for traxtsportation or as a result of aome order, requisition or necessity of the government, �
<br /> or as the result of any cause whatsoever beyond the control oE the lessee, the time of such delay or interruption shall not be counted against lessee, anythiag in this lease to �
<br /> the contrary notwithstanding.
<br /> � 11. Lessor hereby warrants and agrees to defend the title to said land a,nd agrees that lesaee, at lessee's option (but without any duty to do so), may pay and discharge �
<br /> ariy tases, mortgages or other liens upon said land, and in that event lessee shall be aubrogated to such lien, with full right to enPorce the same, and in addition thereto may
<br /> retain for the satisfaction of auch lien and interest all royalties or rentals accruing hereunder. If lesaor owns an interest in said land less than the entire fee aimple eatate,
<br /> then the royalties and rentals to be paid lessor shall be reduced proportionately. Should the right or interest of lessee hereunder be disputed by lessor, or any other peraon,
<br /> the time .covered by the pendency of such dispute sha11 not be counted against leasee either as affecting the term of the lease or the time for payment of rentals or
<br /> royaltiea or Eor any other purpose, and lessee may suspend all paymenta until there is a final adjudication or other determination of such dispute.
<br /> IN WITN S WHEREOF this instrument is executed on the date first above written. ' � �
<br /> Post d onF�a. APP��OVED As TO Andrew F.Farabee �sF.AT,� `�
<br /> 3-1�j-1930 c��r I.E.L. DE C I�TI�N�& DATA g�,rah Farabee csEar�� �
<br /> �r�S�I�/� 1 L�SSOR �
<br /> Atteat: l C'��� TEXAS PRODUCTION COMPANY,
<br /> J.�.Hudnall �SEAL sy A.R.Wilson .
<br /> A3sistant Secretary. Vice Preaident
<br /> LESSEE
<br /> STATE OF NEBRASKA, )
<br /> ; ss.
<br /> County of Ha 1.�.
<br /> On this 5t�'1 day of Mareh is 3� , before me, a Notary Public, in and for said County, persona,lly came the above named
<br />' ,pi21C�.TE4� �.F�.�a:bee and 5�,rah Fa�ab�e , his wife, who are personally known to me to be the identical
<br /> persons whose•names are aFfixefl 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. (gEAL) � G•�'Ca�l$O� ' I�
<br /> • Notary Public.
<br /> My commission exgires on the 19 day of J an• � 1�3 5 -
<br /> STATE OF COLORADO,
<br /> ss. �'����.:.
<br /> City and County of Denver, ,
<br /> On this 2� d�y of �8.�CYl , 19 3� , before me, a Notary Public, in and for said County, personally came the above na,med i
<br /> l�.x.�'i l son , Vice President and J.�,.HUC�Yla.11 Assistant Secretary of said Texas Production Company, who i
<br /> are personally known to fne to be the identical persons whose names are affixed to the above instrument as Vice President and Aseistant Secretary of said 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 Seal the date last aforesaid. (sEAL) John T.N�strom
<br /> Nota.ry Pub c.
<br /> My commiasion expires on the � day of 0 et ob er , 18
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