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<br /> B -�- OIL AND GAS LEASE f�
<br /> Form 88�(Producers) (NEBRASKA)
<br /> 21282—The Augustine Co., County Supplies, Grand Island, Nebr.
<br /> FROM THE STATE OF NEBRASKA
<br /> ss.
<br /> Albe..rt J.Denman and wife, Ha.11 County,
<br /> 1 Iiereby certify that this instrument was entered on Numerical Index, and filed
<br /> �'or record this �j� day of O�tober �j19 1�]. .
<br /> TO at 9 o'clock A. M. ����-a„-aL V✓
<br /> Register of D�
<br /> Deputy.
<br /> The Ca.rter 011 Company Fees, $ 2. 20
<br /> Commence
<br /> AGREEMENT, Ma�le anc�entered into this 9�rl day o` 0 c t o b e r . i9 �]. , by and �etween Al b e r t cT.
<br /> Denman a.nd Laura A.Denman, nusband ar�cl t�rif e, of Kene sa.w, NebraGka,
<br /> Tne Cart er �11 Comp�.ny Party of the first part,liereina`ter called lessor(whether one or moreJ and
<br /> Part y o f the second part, hereinaf ter called Iessee,
<br /> WITNESSETH, That t�ie saic�lessor, f or anc�in consic�eration o f �ri E' �.Cl C� �. V. (�i. — — — — — — — — — — — — — — DOLLARS,
<br /> cash in �and paic�`, receipt of wAich is hereby aclznowledged, and of tlie covenants and agreements hereinafter contained on the part of lessee to be paid, kept, and per-
<br /> formed, has granted, demised, leased and let and by these presents does grant, demise,lease and Iet unto said lessee,for the sole ancl only purpose of mining and operating
<br /> for oil and gas, and laying pipe lines, ancl builcling tanks, power stations and structures thereon to produce,save and talze care of said products,all that certain tract of land
<br /> situated in the County of Hc`111. State of NEBRASKA described as follows, to-wit:
<br /> A11 of t�le South�,rest quarter ( SW4) lyin�• Scutn of trle Union PU.cific Railroad rightof�ay
<br /> of Section .5�- Township 9 North Range 12 West and containing 1�-�- acres, more or less.
<br /> It is agreed that this lease shall remnin in )ull force f or a term of T en �l�� years f rom this date, and as Iong tliereaf ter as oiI or gas, or
<br /> either o f them, is produced f rom said land by the Iessee.
<br /> In consicLeration of the premises the said lessee covenants and agrees:
<br /> ist. To deliver to the credit of lessor, free of cost, in tAe pipe Iine to which l�e may connect his wells, t�ie equal one-eigFith (��,part of aIl oil produced and saved
<br /> f rom the leased premises.
<br /> a,nd. To pay lessor for gas from each well wl�ere gas only is found tTie equal one-eighth (�/a) of the gross proceecls at the prevailing marizet rate, for aIl gas used of{'
<br /> tj►e premises, saic�payments to be macle Quar t er 1 y
<br /> ancl lessor to liave gas f ree o f cost f rom any such well f or alT stoves and all inside lights in the principal dwelling house on said land during the same time by malzing his
<br /> own connections witl� tlie well at his own rislz and expense.
<br /> 3rd. To pay Iessor for gas procluced from any oil weLl and used of f tlie premises or in the manufacture of gasoline or any other procluct a royalty of one-eighth
<br /> ('�) o{ tTie market value, at the mout� of the welT, payable montTily at the prevailing market price.
<br /> 1 f no well be commenced on said land on or be f ore the 9 t r1 day o f Q C t 0�J P,Y' , t q �}-2 > this lease shall
<br /> terminate as to both parties, unless the lessee on or bef ore that date sliall pay or tender to the lessor,or to tlie lessor's credit in The Fir s t ..5't c'�t 2
<br /> Bank at sh e 1 t o n, N e br a S�-i a, or its successors, whtoh 3h8I1 continue
<br /> as the depository regardless of changes in the ownership of said land, the sum of '1'tit{E�� �T1C� �0/100 cns — — — — — — — — DOLLARS,
<br /> which shall operate as a rental and cover the privilege of deferring the commencement of a well for tLV27.V8 months from said clate. In like manner and
<br /> upon like payments or tenders the commencement o f a well may be f urther de f erred f or like periods o f the same number o f months successively. AIl such payments or
<br /> tenders of rentals may be made by checlz or draft of lessee or any assignee thereof, mailed or cIelivered on or before the rental paying clate, either t�irect to lessor or assigns
<br /> or to saicl clepository bank. And it is understood and agreed tTiat the consicleration f irst recited herein, the down payment, covers not only tTie privileges granted to tlie
<br /> clate wlien said f irst rental is payable as af oresaid, but also the Iessee's option of extending that period as af oresaid, and any and aIl other rrgl�ts conf erred.
<br /> Should t�e f irst well drilled on the above described land be a dry hole, then, anc�in that event,if a second well is not commenced on said lancl within twelve months
<br /> from the expiration of the Iast rental period for which rental has been paid, this Iease sliall terminate as to both. parties, unless the Iessee on or before the expiration of
<br /> said twelve months s�all resume the payment of rentals in the same amount and in the same manner as �iereinbefore prouiclecl. And it is agreed that upon the resump-
<br /> tion of the payment of rentals, as above provided, that the Iast preceding paragraph hereof, governing the payment of rentals and the e(fect tTiereof, shall continue in
<br /> f orce just as though there had been no interruption in the rental payments.
<br /> If saicl lessor owns a less interest in the above described land tl�an the entire and undivided fee simple estate therein, then the royalties and rentals herein provided
<br /> shall be peLid the lessor only in the proportion which. his interest bears to the whole and undivided fee.
<br /> ' Lessee shall have the right to use, free of cost, gas, oil, and water produced on said land for its operation thereon, except water from wells of Iessor.
<br /> When requested by lessor, lessee shall bury his pipe lines below plow depth.
<br /> No well shall be drilled nearer than 20o feet to the T�ouse or barn now on said premises, witliout the written consent of the lessor.
<br /> l.essee s�iall pay f or damages caused by its operation to growing crops on saicl Iand.
<br /> Lessee shall have the right at any time to remove aIl machinery and fixtures placed on said premises, including the right to draw and remove casing.
<br /> 1f the lessee shall commence to driTT a well within the term of this lease or any extension thereof, the lessee shall have the right 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 lease shall continue and be in force with the lilze ef fect as if
<br /> such well had been completed within the term o f years herein f irst mentioned.
<br /> If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowecl, the covenants hereof shall extend to their
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership of t�e land or assignment of rentals or royalties shall be binding on the lessee until
<br /> after tTie lessee has been furnished wit� a written transfer or assignment or a true copy thereof; nnd it is hereby agreed in the event this Iease shall be assigned as to a
<br /> part or as to parts of the above described lands and the assignee or assignees of such part or parts sTiall fail or make default in the payment of tTie proportionate part of
<br /> the rents clue from him or them on an acreage basis, such default shall not operate to dej'eat or affect tliis lease in so far as it covers a part or parts of said lands upon
<br /> which the said lessee or any assignee thereof shall make due payments of said rentals. I{ the Ieased premises are now or hereafter owned in severalty or in separate tracts,
<br /> the premises. nenertl�eless, may be denelopecl anrl 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 oblrgation on the part o j' the lessee to of f set wells on separate tracts into which the Iand covered by this Iease
<br /> may herea f ter be c�ivided by sale, devise, or otherwise, or to f urnish separate measuring or receiving tanks f or tlte oiI proclucecl f rom such separate tracts.
<br /> Lessor hereby warrants and agrees to defend the title to the lands herein describec�, and agrees that the lessee shall have the right at any time to redeem for lessor by
<br /> payment, any mortgages, taxes or other liens on the above described lands, in the event of cle}'ault of payment by lessor, and be subrogated to the rights of tl�e holder
<br /> t�iereo f.
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<br /> Signed, sealed and delivered in presence o{ ----�-�--------------------------------�-------------.-La�T'�.''a..___�...D��?�?�_2�._._..------------------....._..(SEAL)
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<br /> Ada.m M. Bu tl er _______________(SEAL)
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