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<br /> — ���HAY LDYC�:HiflEH -_ _—_
<br /> I From STATE OF NEBRASI�A, �s.
<br /> Hall County, �
<br /> �� Benjamin F.$cudc?er and c�ife ,
<br />, �, I hereb� certif� that this instrumey��t uas filed for record in my office
<br /> - at 9:00 o'c�nc7c A��., October 15� 1930 , ccnd is
<br /> ' duly recorded in book Q page �� .
<br /> �;
<br /> I; � �.��������-��'
<br /> Register of Deeds
<br /> �: To B✓
<br /> �:
<br /> s� T`exas Production Company Deputy.
<br />�� � �� - Ii'ees,� 2.80 ��
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<br /> ;� ea�e. q TH�= AS QOI��P AT�BRA�S . �
<br />�� ,; � ir t�i n s� ,� �IL AND GAS MINING LEASE R n�a�'��ook55�5 �
<br /> �; 3��7 �`g3g by . .�, . p �T
<br /> I� An Agreement, entered into this 5 day of Mareh 3��7�s��3� b�beti'��e�' •
<br /> � Benjamin F.scudder and Flora! A.Scudder his �ife; Doniphan Nebraska
<br /> ��
<br /> ry� lessor- (whether one or more), and TEXAS PRODUCTION COMPANY, a corporation organized under the laws of Colorado, lessee.
<br /> `��" 1. Lessor, in consideration of the sum of Sevent Nine Dollars ($ .
<br /> ST �9 OQ )> 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 any method for formationa
<br /> and proapecting 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 houses for employees) thereon, to produce, save, take care of, treat and tra.nsport said products, the following described
<br /> land in Hall County, State of Nebrasiia, to-wit:
<br /> �' the north east uarter section I
<br /> , q 3, tovanship 9 north, range 10 west and containing 150 ac�es �
<br /> ; more or less. The north �ast quarter and the south ha,lf of the north west quarter,the south
<br /> . � west quarter, the southeast quarter, Mainland lots 1&2,Island lots 1, all in section 21
<br /> to�anship 9,rna�e 11 v�ESt and containing 7g0 �,cres more or Isss �
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<br /> �'� 2. Subject to the other proviaions herein contained, this lease shall remain in force for a term of ten years from this date (hereinafter 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, iessee a� any time may release this lease �
<br /> � in whole or in part.
<br /> ;� 3. The royaltiea reserved by lessor, and which shall 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 wells or to the credit of lessor in the pipe line to which the welis 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 tanks, lessor's interest in either case to bear its
<br /> proportion of any expense of treating unmerchantable oil to render it merchantabie as crude, and (b) on gas produced from said land and aold 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 sell gas at the wells lessor's royalty thereon shall 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 royalEy rights from the lessor at the best bona fide price offered by responsible third parties when and ff
<br /> offered for sale or transfer by lessor.
<br /> ' 4. If drilling operationa are not commenced on said land on or be�ore qne yg,ar�rom th' date, this lease st�,11 t en termin�,te as to both parties, unless
<br /> i leasee shall pay or tender to essor or to the credit of les o x�, 13anK OI onip�ian Bank atllOTl�phan,Nebra k wni�h ��nx �
<br /> lessor's agent) the sum of �hir�� Nine a.Tltl �j���UO — — - — — — — — — — — — — — — —Dollars ($ ��. -�j� )
<br /> (hereinafter called "rental"), which s all extend for six months the time within which drilling operations may be commenced. There ter, semi-annually, in �
<br /> , like manner, and upon like payments or tenders, the commencement of drilling operationa may be further deferred for periods of six months during the j
<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 such date I
<br /> of payment. Drilling operations hereunder shall be deemed to be commenced when the first material is placed on the ground. Notwithsta.nding any devolu-
<br /> 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 representatives of lessor. If such bank (or any successor 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 shall deliver to lessee an instrument in writing duly
<br /> j: 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 mere rental for a period.
<br /> ! 5. If prior to the discovery of oil or gas on said land leasee shouid drill a dry hole or holes thereon, this lease shall not be terminated thereby if iessee,
<br /> 'I before the next ensuing rental paying date, commences further drilling operations or commences or resumes the payment or tender oF rentals. If after the I
<br /> �I discovery of oil or gas the production thereof should cease from any cause, this lease shall not be terminated thereby if lessee commences additianal 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 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 /> f,, 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 i
<br /> thereafter as oil or gas is or can be produced from any well on said land.
<br /> i;: 6. Lessee shall have the free use of oil, gas, wood, coal and water irom said land, except water from lessor's wells, for all operations hereunder; and the royalty on oil
<br /> : and gas ahall be in the net quantity after deducting any so used for operations. Less�e shall have the right at any t;me during or aFter the expiratfon of this lease to remove �
<br /> a11 property and fixtures placed by lessee on said land, including the right to draw and remove all casing, Wheri required by lessor, lessee will bury all pipe lines below I
<br /> �i ordinary plow depth, and tto well ahall be drilled within two hundred feet of any residence or basn now on said land without leaaot's conaent. Lesaor ahail have the privilege, I
<br /> �i at the risk and expense of leasor, of making connection and using gas from any gas well on safd land for stoves and inside lfghts in the principal dweliing on said land out ;
<br /> � oE any surplus gae 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 hereof ahall extend to the heirs, personal representatives, successors
<br /> I and assigns, but no sale or assignment by lessor shall operate to enlarge the obligationa or diminish the rights and privileges of leasee. 3hould lesaee assign this lease in �.
<br /> � �� whole or in part lessor shall look solely to the assignee for performance of ita terms as to the parts ao assigned. No sale or assignment by leeaor ahall be binding on7esaee �
<br /> I� for any purpose until lessee shall be furnished with an instrument in writing evidencing such sale or assignment. If lessee assigns this lease in part, the obligation (if any '
<br /> � exisfs} to pay rentals is apportioned as between the aeveral owners ratably according to the surface area of each, an�i 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. Thfs lease shall never be forfeited, cancelled, or terminated for faflure by lessee to perform in whole or in part any of ita implied obligatione, nor while oil or gag is f
<br /> jj being produced in paying quantities for any cause whatsoever, unless there shall firat be a final judicial aseertainment that such obligation or eause exists and ty►at lessee
<br /> � is in default. Upon such final determination, lessee is hereby given a reasonable time therealter to comply with such obligation, or,'at lessee's election, to surrender tfie
<br /> (� lease, with the option of reserving, under the terms of thfs lease, each producing well and ten acres surrounding it to be selected by lessee. Leasee sha11 not ba liabie in
<br /> damages for breach of any implied obligation. �
<br /> � +� 9. If sis or more persons be or become entitled to royalties hereunder, they shall by sufficient written instrument deaignate some agent to receive paymeat for all, ;
<br /> and lessee sha11 not be required to make payment until such instrument ia furniehed. �
<br /> N �i 10. When drilling or other operations are delayed or interrupted by lack of water, labor or material, or by fire, storm, flood, war, rebeliion, insurrection, riot, strike,
<br /> � differencea with workmen, or failure of carriers to transport or furnish facilities for transportation or as a result of some order,'re4u�taition or necesaity oi the gavernment, ;
<br /> � or as the result of any cause whatsoever beyond the control of the lessee, the time oE such delay or interruption sha11 not be counted againat lessee, anything in thie lease to f
<br /> ! the contrary notwithstanding. I
<br /> � 11. Lesaor hereby warrants and agrees to defend the title to said land and agrees that lessee, at leasee's option (but without anq duty to do so), may pay and diacharge
<br /> ariy taxes, mortgages or other liens upon said land, and in that event lessee shail be subrogated to such lien, with fuli righk to entosce the same, and in addition thereto may
<br /> Ii retain for the satisfaction oY such lien and interest all royalties or rentals accruing hereunder. If lesaor owns an fntereat in said land less that� the entire fe� aimple'estate,
<br /> then the royalties and rentals to be paid lessor shall be reduced proportionately. Should the right or interest of lessee hereunder be disputed bq lexaor, or any other person,
<br /> � I` the time covered by the pendency of such dispute shall not be counted against lessee either as affecting the term oE the lease or the time for payment of reatals or
<br /> �I royalties or for any other purpose, and lessee may suspend all payments until there is a final adjudication or other determination of such diapute. �
<br /> �'' IN WZTNESS WHEftEOF this instrument is executed on the date first above written. �
<br /> I, Posted on Map AyPI�OVEi7 AS T0. Ben�amin �'. 8cudder es�ar.� �
<br /> �� 1 1 0 BY I.E. L, DESCT�IPTION & DA��A " �
<br /> '� 3 7 �3 T.F.Fr �man � Flora A. Scudder esEAr.� �)
<br /> � I�� � � 1� L�SSOR �� �
<br /> � Attest: ' Co TEXAS PRODUCTION COMPANY, �
<br /> � J.C.Hudnall SEA sy A.R.�ilson
<br /> �I Assistant Secretary. Vice President �
<br /> �; LESSEE I �
<br /> II STATE OF NEBRASKA, ) i
<br /> i� County of H�,11 }� ss.
<br /> f �
<br /> �f On this 5 day of Mar eh , 19 3�, before me, a Notary Public, in and for ss,�Co ty, personally came the above named
<br /> �' Ben�amin F''.Scudder and Flora A.�cudder ;his wife, who are ersonally known ta me-to be the identical
<br /> , persons whose names are affixed to the above instrument as lesaors, and they each acknowledged said instrument to be their voluntary act and deed.
<br /> iWitness my hand and Notarial Seal the date last aforesaid. t gEAL� C.�.dBT�.$OTl I '
<br /> i� ' Notary Public. j
<br /> ' My commission expires on the 1.9 day of J�• , is 35
<br /> � .
<br /> ,j STATE OF COLORADO, ,
<br /> �i City and County of Denver, � ss. I
<br /> On this 2$� day of Mar eh , 19 j� , before me, a Notary Public, in and far said County, personally came the above named �
<br /> �; A.�.���.60Ti , Vice President and cJ. Ci.Ht1C�718,�.1 - Assistant Secretary of said Texas Production Company, who
<br /> �� corporationlland they acknowledged the instrument to be their voluntary act and d ed nd thevoluntary ct and eed of saidn orporation.t Secretary of said �
<br /> n Witness my hand and Notarial Seal the date last aforesaid. �sEAL� eJOYlYi �'.N3�strom �
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<br /> � My commission expires on the �yQ day of Oetober 18 Notary�ublic, �
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