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B -I- OIL AND GAS LEASE �s�
<br /> f
<br /> Forni 88.�(Producers) (N�BRASKA)
<br /> 21282—The Augustine Co., County Supplies, Grand Island, Nebr.
<br /> FRpM TI-IE STAT� OF NEBRASKA
<br /> ss.
<br /> Walter S. Ashton and ?aife, Hall Caunty,
<br /> I hereby certif y tTiat this instrument was entered on Numerical Index, and f�led
<br /> f or recorcl this 3� c�ay of �C t O b@'G� ^19�l .
<br /> Tp Qe Q o'o[ook A.M. �� :r�
<br /> Register of�
<br /> The C�,rter Oil Company Deputy.
<br /> Fees. $ �. �Q
<br /> Commence
<br /> AGREBMENT, Made and entered into this �t ri day o f �e t o p er , t9 �]. . by and between
<br /> Z+Jalter. S.l�^izton a.nd Edna B.Ashtol., his ti�ri�'e, Snelto:��, Ne�raska
<br /> Party of the f irst part, hereinaf ter called lessor(whether one or moreJ and
<br /> The C�Y'�PT' �11 �%ompany Pa►� i°S of fhe second part, hereinafter callecl lessee>
<br /> WITNESSETH, That the said lessor, for and in consideration of OriE' �:1Q no/100 — — — — — — — — — — — — — — DOLLARS.
<br /> cash in hand paid, receipt of whicli is 1�ereby aclznowledged, and of tl�e covenants and agreements liereinafter contained on the part of lessee to be paid, kept, and per-
<br /> formed, l�as granted, demised, leased and Iet 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 tanlzs, power stations and structures thereon to produce,save nnd talze care of saicl products,all that certain tract of land
<br /> situated in the County of �<`�,1-1. State of NEBRASKA described as follows, to-wit:
<br /> Tne South Ea.st Quarter ( SE�)
<br /> of Section 1.7 Townsl�ip 9 Nortri Range �2 j°�2St and containtng 1.60 acres, more or Iess.
<br /> lt is agreed that this lease shall remain in f uIl f orce f or a term of `I'@;1 �Z�� years trom this date, and as long thereaf ter as oil or gas, or
<br /> either of tliem, is produced from said Iand by the Iessee.
<br /> In consideration of the premises the said lessee covenants and agrees:
<br /> ist. To deliver to tl�e credit of lessor, free of cost, in the pipe line to which he may connect {►is wells, the equal one-eighth ('�) part of aIl oil produced and saved
<br /> f rom tlie leased premises.
<br /> �nd. To pay lessor for gas from each well wliere gas only is found tlie equal one-eighth (�/s) of the gross proceeds at the prevailing marizet rate, for alI gas used of f
<br /> the premises, said payments to be made In O I1 t.�'l l�
<br /> and;lessor to have gas free of cost from any sucli well for all stoves and alI inside lights in the principal c�welling house on said land during the same time by malzing his
<br /> own connections witl� tTie well at his own risk and ezpense.
<br /> 3rd. To pay Iessor for gas produced from any oil well and used of f the premises or in t�e manufacture of gasoline or any other product a royalty of one-eighth
<br /> (�) of the market value, at the moutli of tlie well, payable monthly at tTie prevailing market price.
<br /> If no well be commenced on said Iand on or before the btrl day of Oetober , lq 1{-2 , this Iease shall
<br /> terminate as to both parties, unless the lessee on or before that date shall pay or tender to the Iessor, or to the lessor's credit in The Fir s t Stc�t 2
<br /> Bank at Sn.elto:l� NP,bT'�,Sk�1. or its successors, wh��h ghall continue
<br /> as the clepository regardless of changes in the ownership of said Iand, the sum of F''OT't�, 2riCi noI100 — — — — — — — — — DOLLARS,
<br /> which shall operate as a rental and cover the priuilege o f de f erring tFte commencement o f a well f or 1� months f rom said date. In lilze manner and
<br /> upon like payments or tenders the commencement o f a well may be f urther def errecl f or like periods o f the same number of months successively. AIl such payments or
<br /> tenclers of rentaCs may be macle by check or draft of lessee or any assignee thereof, mai�ed or delivered on or before the rental paying date, either direct to lessor or assigns
<br /> or to said depository banit. And it is understood and agreed that the consideration f irst recited herein, the down payment, covers not only the privileges granted to the
<br /> date when said first rental is payable as aforesaid, but also the lessee's option of extenc�ing tltat periocl as aforesaid, and any and all other rights eonferred.
<br /> Should t�e f irst well drilled on the above described land be a dry Tiole, then, and in that event, if a second well is not commenced on said Iand within twelve mont�s
<br /> from the expiration of the last rental period for which rental has been paid, this lease shall terminate as to both parties, unless the Iessee on or before the e�rpiration of
<br /> said twelve montl�s shall resume the payment of rentals in tlie same amount and in the same manner as hereinbefore provided. And it is agreed that upon the resump-
<br /> tion of the payment of rentals, as abo�e provided, that the last preceding paragraph liereof, governing the payment of rentals ancl tFie effect thereof, shall continue in
<br /> force just as though there �ac� been no interruption in the rental payments.
<br /> 1 f said lessor owns a less interest in tl�e above described land than the entire and undivided f ee simple estate therein,.then the royalties and rentals Tierein provided
<br /> shall be puid the lessor only in the proportion which his interest bears to t�e whole and undivided fee.
<br /> Lessee shall have the rigl�t 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 shail bury hLS pipe lines below plow depth.
<br /> No welC shall be drilled nearer than 20o feet to the house or barn now on said premises, without the written consent of the lessor.
<br /> L.essee shall pay f or damages caused by its operation to growing crops on sa%cl land.
<br /> Lessee shall have the 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 lessee shall commence to drill a well within the term of this lease or any extension thereof, the Iessee shall have the right to drill such well to completion with
<br /> reasonable diligence and dispatch, and if oiI or gas, or either of them, be found in paying quantities, this lease shall continue ancI be in force with the lilze effect as if
<br /> sucli well had been completed within the term of years l�erein first mentioned.
<br /> ' If the estate of either party hereto is assigned, and the privilege of assigning in whole or in part is expressly allowed, the covenants hereof sFiall extend to their
<br /> heirs, executors, administrators, successors or assigns, but no change in tlie ownership of the Iand 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 tliereof; an� it is �ereby agreed in tlie event this Iease shall be assigned as to a
<br /> part or as to parts of t1�e above described lands and the assignee or assignees of such part or parts shall fail or make default in the payment of tTie proportionate part of
<br /> the rents due }'rom him or them on an acreage basis, such default shall not operate to defeat or af fect this Iease in so far as it covers a part or parts of said lands upon
<br /> which tT�e saicl Iessea or any assignee thereof shall maTze due payments of said rentals. If the Ieasecl premises are now or Tiereafter owned in severalty or in separate tracts,
<br /> the premises, nec�ertheless, mny be der,eloped and operated as an entirety, and the royalties sliall� be paicl to each separate owner in the proportion that the acreage owned
<br /> by him bears to the entire, leased area. There shall be no obligation on the part o f the lessee to o f f set 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 tanks for the oil produced from such separate tracts.
<br /> Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the lessee sh,all have the right at any time to redeem for lessor by
<br /> payment, any mortgages, taxes or other Tiens on the above described Iands, in tTie event of clefault of payment by lessor, and be subrogated to tTie rights of tTie liolder
<br /> thereof.
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<br /> Signed, sealed and delivered in presence of
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