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<br /> FPOin STfI.TE 0�' NEBRASgA;� �S
<br /> Hall Cozcazty, �
<br /> J.L.C2eury and C.E.Grundy, Trustees,
<br /> I heretiy certif� thut this inst��umer��t was filed for record. in my office
<br /> . at 10 dcl,ocic A�. �i., October 17� 1938 , ccnd is
<br /> duly recordecl in boolc Q pac�e 107 � �� _
<br /> �/C,�c--���a,al �,�«"'�
<br /> Register of Deecls
<br /> To ��
<br /> 'd'exas Production Company of Nebra+a File No.N—�9���'•
<br /> , l+'ees,� 2•�0 posted; Date y
<br /> — J T.N
<br /> OIL A.ND CiA.S 1VII�T�[I�C� I�EASE �r�e�ed 1?----
<br /> 1-in Agreement, entered anto this 1.8t day of September COpy �at�j�T , betweenr
<br /> J.L.Cleary �nd C .E.Grundy, Trusteea, Grand Island,Nebraska
<br /> lessor (whether one or more), and TEXAS PRODUCTION COMPANY,�a cor��po ation organized under the laws of��les�ee.
<br /> 1. Lessor, in consideration of the sum ofTen � 9�-��.00------ Doliars (�y 1�.9� ), in hand paid, of t-he royalties herein provided
<br /> and the agreements of lessee herein contained, hereby grants, leases and lets exclusively unto lessee, for the purpoae of testing by any method for formationa
<br /> and prospecting and drilling for and producing oil and gas, laying pipe lines, building tanks, storing oii and building powers, stations, telephone lines
<br /> and other structures (including houses for employe�s) thereon, to produce, save, take care of, Lreat and tranaport said products, the following described
<br /> land in H&1.1 County, State of Nebraska, to-�vit:
<br /> E�NE� Sec. 34, TlON, R12�,�0 acres, Lots 3 & � in NE� Sec. 16, T.9 N. , R.12 �t. , 29.�0 acres,
<br /> total o,f I09.�0 acres, �dore or Iess.
<br /> _ �
<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 called "primary � ' :
<br /> term") and as tong thsreafter 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 lesaor, 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 a,t the wells of such one-eighth on the day it ie run to the pipe line or storage tanks, lessor's interest in either case to bear its
<br /> proportion of any expense of treating unmerchantabie 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 sell gas at the wells lesaor's royalty thereon shall be one-eighth of the amount realized from auch sales. Lessee is hereby given the
<br /> option of purchasing ail or a.ny part of said royalty rights from the lessor at the best bona fide price offered by responsible thfrd parties when and if N
<br /> offered for sale or transfer by lessor. �
<br /> 4. If drillin o erations a�re not commenced on said land ox�,pr bef�g e ong @�_r rpm thig date, this lease shaii the�}termp ate as to o s, unless
<br /> lesaee shall pay or tender to lessor or tq,t e rc�t of lessor in '1'rie P'�Y'8Ly1VA�lOAa,l Bank atGranCt 181and N �� bank is
<br /> lessor's agent) the sum of F ive c�t `��!��U — — — — — — — — — — — — — " — — �' — — — Dollars ($ '�j.�� 1 �
<br /> (hereinafter cailed "rentai"), which sha,ll extend for sis 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,rp term. The payments or tenders of rental may be made by the check or draft of lessee ma.iled or delivered to eaid bank on or before such date
<br /> of payment. Drilling operations hereunder shall be deemed to be commenced when the first materiai is placed on the ground. Notwithstanding any devolu-
<br /> tion, change or division in the ownership of said land, the payYnents or tendera of rental in the manaer herein provided shall be binding on the successors, '�
<br /> assigns or legal representatives of lessor. If such bank (or a.ny successor bankj should fail, liquidate or be succeeded by another bank, lessee shall not �Q
<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 a.nd acknowledged, naming another bank as agent to receive such payments or tenders. The down cash payment is considerakion for this leasa
<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 lessee should driYl 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. If after the
<br /> discovery of oil or gas the production thereof should cea�e from any cause, this lease shail mot be terminated thereby if lesaee commences additional drilling
<br /> operations within six�y days thereafLer or (if it be within the primary term) commences or resumes the payment or tender of rentals before the nest
<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, so long
<br /> thereafter as oil or gas is or ca,n be produced from any well on said land.
<br /> 6. Lessee shall have the free use of oil, gas, wood, coal and water from said land, except water froan lessor's wells, for ali operations hereunder, and the royalty on oil
<br /> and gas shall be in the net quantity after deduct3ng any so used for operatione. Lessee shall have the right at any time during or after the expiration of this lease to remove
<br /> all property and fixtures placed by lesaee on said land, including the right to draw and remove all casing. When required by le3sor, lessee will bury all pipe lines below
<br /> ordinary plow depth, and no well shall be drilled within two hundred feet of any residence or Uarn now on said land without lessor's consent. Lessor shall have the privilege,
<br /> at the risk and expense of lessor, of making connection and using gas from any gas well on said land for stoves and inside lights in the principal dwelling on said land out
<br /> of any surplus gas not needed for operations hereunder.
<br /> 7. The rights of either party under thia lease may be assigned in whole or in pa.rt and the provisions hereof shall extend to the heirs, personal representativea, auccessors
<br /> and assigns, but no sale or assignment by lessor shall operate to enlarge the obligations or diminish the rights and privileges of lessee. Should lessee aSSign thia leaae in
<br /> whole or in part lessor shall look solely to the assignee for performance of ita terms as to the parts so assigned. No sale or assigmnent by lessor shall be binding on lesaee
<br /> for any purpoae until lessee shall be furni�hed 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 oE rentals
<br /> ahall not affect the validity of the lease on the portion of land upon which pro rata rentals are paid or tendered.
<br /> 8. This lease shail never be forfeited, cancellad, or terminated 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 quantities for any cause whatsoever, unless there shall first be a final judicial ascertainrnent that such obligation or cauae exfsts and that lesaee
<br /> is in default. Upon auch 4ina1 determination, lessee is hereby given a reaeonable time thereafter to comply with such obligation, or, at lessee's election, to surrender the
<br /> lease, with the option of reserving, under the terms of this lease, each producing well and ten acres aurrounding rt to be selected by lessee. Lessee ahall not be liable in
<br /> damage5 for breach of any implied obligation.
<br /> 9. If six or more persons be or become entitled to royalties hereunder, they slzall by sufficient written instrument designate aome agent to receive payment for all,
<br /> a� 1 no,�,,,�- ir?�j to m�a��k��j�a,�m�e�unti su h�' s t f r h�;l �,,,,,p ��-��-�o/ ��'�
<br /> 9" � n drilling o�ef op�ratior�°'ar�"cfef�e�d�rrup'���a'�c�of wate;1��5�°o�a�riaY, or by fire, stox�tn�o� was, bell��insurrection, riot, 8trike,
<br /> differences with workmen, or failure oE carriers to transport or furnish facilities for transportatiofl or as a result of some order, requisiti or necessity of the government,
<br /> or as the result of any cause whatsoever beyond the control of tl�e lessee, the time of auch delay or interruption shall not be counted against lessee, anything in thia lease to
<br /> the contrary notwithstanding.
<br /> 11. Lesaor hereby wurrants and agrees to defend the title to said land and agrees that lesaee, at lessee's option (but without any duty to do so), maq pay and discharge
<br /> asiy taxes, mortgages or other liens upon said 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 such lien and intereat all royaltfies or renttzls accruing hereunder. If lessor owns an interest in said land leas than the entire fee aimple estate,
<br /> then the royalties and rentals to be paid lessor aha11 be reduced proportionately, Should the right or interest of lessee hereunder be disputed by leasor, or any other peraon,
<br /> the time covered by the pendency of such dispute shall not be counted against lessee either as affecting the term oP the lease or the time for payment oY rentals or
<br /> royalties or for any other purpose, and leasee may suspend a11 payments until there is a final adjudication or other determination oP such dfapute.
<br /> IN WITNESS WHEREOF this instrument is executed on the date first above written. �
<br /> Witnes�iaude A.Danis J.L.Cleary �sEaL)
<br /> Clara Scheibel C.� Gr�nd� �s�)
<br /> 'rus e e L�ssoR
<br /> APPROVED AS TO .
<br /> Attest: DESC I T DATA �CORP fiEXAS PR UCTION COMPANY,oFNEB/PAsfrA
<br /> �,�,��� (SEAL By H.A.�tewart . !
<br /> �`_(�'.;�uf�I�A'�l° '. A�sistant Secretary. Vice President �
<br /> �ss� ,
<br />�
<br /> STATE OF NEBRASKA, '
<br /> Hall � ss.
<br /> County of �
<br /> On this I�� day of september , 193 8 , before me, a Notary Public, in and for said County, personally came the above named
<br /> eJ.1.,.Cleary ana c.E.GI'UndY�TruS't�28 who are personally known to me to be the identical
<br /> persons who{se names are a�xed �to the above instrument as lessors, and they each ackno�vledged said instrument to be their voluntary act and deed,and
<br /> thei� Vo/Un qry Qct and dF �+s ry sfees. DaviB
<br /> Witness my hand and Notarial Seal the date last aforesaid. ("i�.&LiG�6 �i.
<br /> I � ( 3EAL) xotary Put�lic.
<br /> My commission expires c1'� G►�.r • 3� 9 �;• :: , . .- -
<br /> STATE OF COLORADO,
<br /> � ss.
<br />'I City and County of Denver,
<br /> on this 21 day of Sept. , 193� , before me, a Notary Public, in and for said County, peraonally came�re������
<br />' H.A.St2�YAP'� , Vice President and eT.�'i.HUC�.fl&I.J.� - Assistant Secretary of said Texas Production Compax►y, who !
<br /> are personaliy known to me to be the identical persons whose names are affixed to the above instrument as Vice President and Assistant Secretary of eaid
<br /> I corporation, and they acknowledged the instrument to be their voluntary act and deed and the volunta.ry act and deed of said Corporation.
<br />'� Witness my hand and Notarial Seal the date last aforesaid. (SEAL) J ohn T.�p S'tZ'Om �
<br />� lvota,ry PubHa
<br />' My commission ex ires on the 20 day of �C t+ - , 19�1'
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