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<br /> B -I- OIL AND GAS LEASE
<br /> v'V
<br />' Form 88�(Producers) (NE$RASKA)
<br />. 21282—The Augustine Co., County Supplies, Grand Island, Nebr.
<br /> FROM THE STATE OF NEBRASKA
<br /> ss.
<br /> Blanche Lee Smith and husband Hall County,
<br /> I Ftereby certi{y that tTiis instrument was entered on Numerical Index, and f iled
<br /> for record this 2�j day of October , �19 �1 •
<br /> TO at 9 :Qp o'clock A. M.
<br /> Register of/�
<br /> The Carter Oi1 Company Deputy.
<br /> Fees, $ �• 3 5
<br /> Commence
<br /> AGREEMENT, Made and entered into this g`tY1 day of 0 c t ob er , ig �'1. , by and betu�een
<br /> Blanche Lee Smith and George W. Smitn, her husband, Sheltorl, Nebraska,
<br /> Party of the first part, hereina{�ter called lessor(whether one or more)and
<br /> �r12 Carter �11 Company — — — — — — — — — — — — — — — — — � Part y of t�e second part, h.ereinafter called lessee,
<br /> WITNESSETH, That the said lessor, for and in consideration o{ T�n 2�21C1 no/100 - -- - - - - - - - - - - - - - - DOLLARS,
<br /> cash in hancl paicl, receipt of wliich, is �iereby acTznowledged, ancl of tlie covenants anc� agreements liereinafter contained on the part of lessee to be pa�d, kept, anct per-
<br /> formed, has granted, demised, leased and let and by tliese presents does grant, demise,lease ancl let unto said Iessee,for the sole ancl only purpose of mining and operating
<br /> for oil and gas, ancl Iaying pipe lines, and building tanlzs, power stations and structures thereon to produce,save ancl take care of said products,all that certain tract of[and
<br /> situatecl in the County of �all State of NEBRASKA described as follows, to-wit:
<br /> The South half of tne Southwest Quarter of the Southz�res� Quarter and the Soutlleast Quarter
<br /> of the South�{�est Quarter of Section Twenty; and Lots l, 2, Mainland and Lot 6 Island of
<br /> Section T�.aenty-Nine
<br /> X4����CXXXXXXXXXX Township 9 North Range 1,2 '(rl�ggj', and containing 200�Q5 acres, more or jess.
<br /> It is agreed that this Iease shall remain in fuii force f or a term o f t e n years f rom this date, and as long thereaf ter as oil or gas, or
<br /> either of tl�em, is produced from said Iand by the Iessee.
<br /> In consideration of the premises the said Iessee covenants and agrees:
<br /> ist. To deliver to tl�e creclit of Iessor, free of cost, in the pipe line to whicl� he may connect his wells, the equal one-eightli ('�) part of aII oiI procluced and saved
<br /> f rom the leased premises.
<br /> 2nd. To pay lessor for yas from each well where gas only is found tl�e equal one-eighth (�/s) of the gross proceec�s at the pre�ailing marizet rate, for aII gas used off
<br /> the premises, said payments to be macle monthly
<br /> and lessor to have gas f ree o f cost f rom any such well f or all stoves and all inside IigTits in the principal dwelling house on said land during the same time by making his
<br /> own connections wit�i the well at his own risk antl expense.
<br /> 3rd. To pay Iessor f or gas produced f rom any oil well and used of f the premises or in tlie manuf acture of gasoline or any otlter product a royalty of one-eighth
<br /> (�/a) of the market value, at the mouth of the well, payable monthly at the prevailing marizet price.
<br /> If no well be commenced on said land on or before the �tYl day of �etober , tg �2 , this lease shall
<br /> terminate as to botlti parties, unless the lessee on or before that date s�,all pay or tencler to the Iessor, or to tlie lessors eredit in The First .Stc3,t',@
<br /> Banlz at Sh e 1 t o n, N e br a s ka or its successors, which shalI continue
<br /> as the depository regardless of clianges in the ownership of said lancl, tTie sum of Fif ty a.nd Ol%100 — — — — — — — — — — — DOLLARS,
<br /> which. s�all operate as a rental and cover th.e privilege o f def erring the commencement oF a well f or 1.2 months f rom saict date. In lilze manner and
<br /> upon lilte payments or tenders the commencement o f a well may be f urther def erred f or like periods o f tlie same number of months successively. AII such payments or
<br /> tenclers of rentals may be mac�e by check or draft of lessee or any assignee thereof, mailed or clelivered on or before fhe rental paying clate, either direct to Iessor or assigns
<br /> cer to said depository bank. And it is understood and agreed that the consideration f irst recited herein, tlie down payment, covers not only tl�e privileges granted to the
<br /> c�ate when said first rental is payable as aforesaid, but also the lessee's option of extencling that period as aforesaid, and any and all other rights conferred.
<br /> Should t�e f irst well clrillecl on tTie above described land be a dry hole, then, anc�in that event,if a second well is not commenced on said land within twelve mont/is
<br /> from the expiration of tTie last rental period for wl�ich rental has been paid, tTiis lease shall terminate as to both parties, unless the lessee on or before the expiration of
<br /> said twelve months sTiall resume the payment of rentals in the same amount and in the same manner as hereinbefore provided. And it is agreed that upon the resump-
<br /> tion of tTie payment of rentals, as above provided, that the last preceding paragrapTi hereof, governing t�e payment of rentals and the effect thereof, shall continue in
<br /> force just as tliougli there Iiacl been no interruption in the rental payments.
<br /> I f said lessor owns a less interest in the above described land than the entire and undivided f ee simple estate therein, then the royalties and rentals Tierein provided
<br /> sTiall be paic� the lessor only in the proportion which his interest bears to the whole and undivided f ee.
<br /> Lessee sTiall have the right to use, free of cost, gas, oil, and water produced on saicl Iand for its operation thereon, except water from wells of lessor.
<br /> WFien requested by Iessor, lessee shaii bury h�s pipe Iines below plow depth.
<br /> No well shall be drilled nearer tl�an 20o feet to the house or barn now on said premises, without the written consent of the lessor.
<br /> I.essee shall pay f or damages caused by its operation to growing crops on saic� land.
<br /> Lessee shall have the right at any time to remove aII machinery and fixtures placed on said premises, including the right to draw and remove casing.
<br /> If the lessee shall commence to clrill a well witTtin the term of this lease or any extension tliereof, the lessee sltall �ave t�ie rig�it to drill such well to completion with
<br /> reasonable diligence and dispatch, and if oil or gas, or either of them, be found in paying quantities, this Iease shall continue and be in force with the Iike effect as if
<br /> such well had been completed within the term o f years herein f irst mentioned.
<br /> If tlie estate of eitl�er party hereto is assigned, and the privilege of assigning in whole or in part is expresslp a�Iocued, tl�e covenants hereof shall extend to their
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership of tTie land or assignment of rentals or royalties shall be binding on the lessee until
<br /> after the lessee has been furnished with a written transfer or assignment or a true copy thereof; and it is Tiereby agreed in the event this lease sliall be assigned as to a
<br /> part or as to parts of the above described Iands and the assignee or assignees of such part or parts shall fail or make default in the payment of the proportionate part of
<br /> the rents clue from him or them on an acreage basis, such default shall not operate to defeat or affect this Iease in so far as it covers a part or parts of said Iancls upon
<br /> whiel� the saicl lessee or any assignee thereof shall make due payments of said rentals. If the leasec� premises are now or liereafter owned in severalty or in separate tracts,
<br /> flie premises. nenertl�eless, mny be developed and operated as an entirety, and the royalties shall be paid to each separate owner in the proportion that the acreage owned
<br /> by him bears to the entire. Ieasecl area. There shall be no obligation on the part of the Tessee to offset wells on separate tracts into which the land covered by this lease
<br /> may hereafter be divic�ed by sale, devise, or otherwise, or to furnish separate measuring or receiving tanks for the oil produced from such separate tracts.
<br /> Lessor hereby warrants and agrees to defend the title to the Iands herein described, and agrees that th,e lessee shall have the right at any time to redeem for Iessor by
<br /> payment, any mortgages, taxes or other liens on the above described lands, in the event of default o{ payment by lessor, and be subrogated to the rights of the holder
<br /> thereof.
<br /> -------------------------------------�-�----------�-----Blanche...Lee Smith----....----.....--(SBAL)
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<br /> Signed. seaTecl and deliverec�in presenee o) ---------------------------------------------------------G�c�r.�e.--�..-_Smi.th...-.------------........._...(SEAL)
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<br /> --------------------------------(SEAL)
<br /> C.A. �'leetwood __.._._(SEAL)
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<br /> --------------------(SEAL)
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