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_ <br /> B -I- OIL A D A LEA E �� � <br /> N G S S <br /> �: <br /> For�► 88.-•(Producers) (NEBRASKA) <br /> 21282—The Augustine Co., County Supplies, Grand Island, Nebr. <br /> FROM THE STATE OF NEBRASKA <br /> ss. <br /> J,G.Jones a,ncz wife, Hall County, <br /> I hereby certify tTiat tkis instrument was entered on Numerical Index, and filed <br /> for record this 2J day o)October q �-1. . <br /> TO at 9 o'clock A.M. ��c�uu��C.�� <br /> Register of Deeds. <br /> The Carter Oil �ompany � Depufy. <br /> Fees, $ 2• ,i�j <br /> �,'ommence <br /> AGREEMENT, Made and entered fnto this Z Q t�l day o{ 0 c t o b e r . tg�{-]. , by and between <br /> J. G. Jones �nd Elva D.Jones, husband �.rld �aife, of Kenesaw, Nebraska <br /> Party of the f irst part, hereinaf ter called lessor(whether one or more)and <br /> 2'Y18 Carter Q�l company - - - - - - - - - - - - - - - Part 31' of the second part, hereina(ter called lessee, <br /> WITNESSFTH, T�at t1�e saicl lessor, for ancl in consic�eration o{ One and �. �l, ri. — — — — — — — — — — — — — — — DOLLARS, <br /> cash in hand paic�, receipt of which is hereby aclznowledged, and of tlie covenants and agreements hereinafter containecl on tTie part of Iessee to be paid, {zept, ancl per- <br /> formed, has granted, demised, Ieased and let and by these presents does grant, demise,lease and let unto said lessee,for the sole and only purpose of mining and operating <br /> for oil and gas, and laying pipe lines, and building tanks, power stations and structures thereon to procluce,save and talze care of said products,all that certain tract of Iand <br /> situated in the County of H��..�.1 State of N�BRASKA described as follows, to-wit: <br /> All of tne Soutneast auarter (SE�) lyin �, Soutri ef tne Platte River in Section 2�, and the North <br /> half (Nz) of tne Nortriea5t quart�r (NE4�, tne SoutnTaest quarter ( SW4) of the Nortneast quarter <br /> (NE�) , all o�' tne ti�est half (Wz) �f trle Sout'rieast quarter (SE4) l��in� North of tne River <br /> Channel, �r�d a.11 of' tne East half (E�) of the Southti�rest qu�rter (SW4 lyin�_ Ncrth of the <br /> River Channel, �::ll in Section 33 <br /> of Section Township 9 NOT't�1 j�n9e 1.2 �'�2St and containing �j��' acres, more or less. <br /> It is agreed that this lease shall remain in fuil force f or a term of T E n ��-�� years f rom this date, and as Iong thereaf ter as oil or gas, or <br /> either of them, is produced from said Iand by the Iessee. <br /> In consicleration of the premises the said lessee covenants and agrees: <br /> tst. To deliver to the credit of lessor, free of cost, in the pipe line to which he may connect his wells, tlie equal one-eigl�tlt (�) part of aII oil produced and saved <br /> from the leased premises. <br /> a,nd. To pay lessor for gas from each well wl�ere gas only is found the equal one-eightFi (�/s) of the gross proceeds at tl�e prevailing market rate, for alI gas used off <br /> the premises, saic�payments to be macle Quarterly <br /> ancl lessor to have gas free of cost from any such well for all stoves and all inside lights in the principal dwelling house on said land during the same time by making his <br /> own connections with the well at his own risk and expense. <br /> grd. To pay lessor for gas producec� from any oil well and used of f the premises or in the manufacture of gasoline or any other product a royalty of one-eighth <br /> ('/s) of the market value, at the mouth of the well, payable monthly at the prevailing marizet price. <br /> If no well be commenced on saicl land on or before tlie lOth day of Oetober . �g �2 , this lease sTia�l <br /> terminate as to botli parties, unless the lessee on or before tliat date shall pay or tencler to the lessor,or to tlie lessor's credit in The Firs t Stc t 8 <br /> Bank at K e n e s a.w, N e br�'Sk a ot its successors,whic� s�all continue <br /> as t�ie depository regardless of changes in the ownership of said land, the sum of SEVENTY-S.iX and no�100ths — — — — — — DOLLARS, <br /> which shall operate as a rental and cover the privilege o f def erring the commencement o f a well f or t we lv e months f rom saul date. In Iike manner and <br /> upon lilze payments or tenders the commencement of a well may be further deferred for Iike periods of the same number of months successively. AII such payments or <br /> tenders of rentals may 6e macle by check or draft of lessee or any assignee thereof, mailec� or delivered on or before the rental paying date, either direct to lessor or assigns <br /> or to said depository banlz. And it is understood and agreed tliat the consideration f irst recitecl herein, tl�e down payment, covers not only the privileges granted to tl�e <br /> clate when said first rental is payable as aforesaid, but also the Iessee's option of extending that period as aforesaid, and any and alI other rights eonferrecl. <br /> Shoulc� tl�e f irst well clrilled on the above described Iand be a dry hole, then, and in that event, if a second well is not commenced on said land wit�iin twelve months <br /> from the expiration of the last rental period for which rental has been paid, this lease shall terminate as to both parties, unless t�e lessee on or before the ezpiration of <br /> said twelve months shall resume tlie payment o f rentals in the same amount and in the same manner as l�ereinbe f ore provided. And it is agreed that upon the resump- <br /> tion of the payment of rentals, as above provided, that the last preceding paragrapTi Fiereof, governing the payment of rentals and the effect thereof, shall continue in <br /> f orce just as though there had been no interruption in the rental paymenis. <br /> 1 f said lessor owns a less interest in the above described land than t�e entire and undivided f ee simple estate therein, then tlte royalties and rentals herein provided <br /> shall be paid the lessor only in the proportion which his interest bears to the whole and undivided fee. <br /> Lessee shall Tiave tl�e right to use, free of cost, gas, oil, and water produced on said land for its operation thereon, except water from wells of lessor. <br /> When requested by Iessor, lessee shall bury his pipe lines below plow depth. <br /> IVo well shall be c�rilled nearer thnn 20o feet to the house or barn now on saicl premises, without th,e written eonsent of the lessor. <br /> l.essee shall pay for c�amages causecl by its operation to growing crops on said land. <br /> Lessee shall have tTie right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing. <br /> If the Iessee shalL commence to drill a well within the term of this lease or any extension thereof, tTie Iessee shall have the right to drill such well to completion with <br /> reasonable diligence ancl clispatcli, and if oiI or gas, or either of them, be found in paying quantities, this lease shall continue and be in force with the lilze effect as if <br /> such well had been completed within tlie term of years herein first mentioned. <br /> If tTie estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly alloioed, the covenants hereof shall extend to their <br /> �ieirs, executors, aclministrators, successors or assigns, but no change in the ownersFiip of the lancl or assignment of rentals or royalties shall be bincling on the lessee until <br /> af ter the lessee has been f urnished with a written transf er or assignment or a true copy thereo f; ancl it is Tiereby agreed in tl�e event this lease shall 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 malze default in the payment of the proportionate part of <br /> the rents due from l�im or them on an acreage basis, sucli default shall not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon <br /> wTiicl� the said Iessee or any assignee thereof sh.all malze clue payments of said rentals. If the leasecl premises are now or hereafter owned in severalty or in separate tracts, <br />' the premises, nei�ertlieless, may be dec�eloped and operated as an entirety, and the royalties shall be paid to each separate owner in the proportion that the•acreage owned <br /> by Tiim bears to tl�e entire, leased area. There shall be no obligation on the part of the Iessee to offset wells on separate tracts into which the land covered by this lease <br /> may hereafter be divided by sale, devise, or otherwise, or to furnish separate measuring or receiving tanlzs{or the oil produced from such separate tracts. <br /> Lessor hereby warrants and agrees to de f end the title to the Iands herein describec�, and agrees that the lessee shall have th,e right at any time to redeem f or lessor by <br /> payment, any mortgages, taxes or other liens on the above described lands, in the event of tlefault of payment by Lessor, and be subrogated to the rights of tlte h,older <br />' thereof. <br /> .....................�----------------------�---------------�_,_�.�.JQSl.��.---------------..._....----....------------(SEAL) <br /> Signed, sealed and delivered in presence of ---------------------------------------------------------E�.v.�..._�...J.Q.n�.s--------.--.---------......_...---...(sEAL) <br /> ------------------------------------------------------------�--...------------------.._..._..............--�------------ <br /> ....-----...(SEAL) <br /> --------------�--...-----------------.I�r1.G. 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