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<br /> OIL AND GAS LEASE
<br /> Containing i400 Printed Words
<br /> Producers 88 Special F.L.B, i-q2
<br />� 21697—The Augustine Co.. County Supplies,°.HGrand Island, Nebr..
<br /> FROI�' THE STATE OF NEBRASKA
<br /> ss.
<br /> Henry C.Luhn Fc vrY Ha�.l County,
<br /> 1 hereby certiJy that this instrument was entered on Numerical Index, ancl filed
<br /> ,I.O for recorcl this 23 clay of March �/'1�9�'2 .
<br /> at 3 o'clock p. M. ��z�L..--•-�! �-/d-u-�''�/
<br /> J.A.F OW y c�,n d Register o f Deeds.
<br /> '�*` Deputy.
<br /> Fees, $ 2.�0
<br /> AGREEMENT, Made and entered into the 3Y'�.� day of February , Ig �2
<br /> bY and between Henry C.Ltia.hn,and ll'Iinnie E.Luhn,hi� wiPe
<br /> of Ci&1.2'O�NP,�7'SSY_fi. hereinafter called lessor (wl�ether one or more), and J.A.Rowland
<br /> hereinafter called lessee:
<br /> WITN$SSETH: Tl�at the said lessor,f or and in consideration o f �n @ �C P1 O�I�� — — — — — — — — — — — — — — — — — — Dollars,
<br /> casli in hand paid, the receipt of which is hereby aclznowledged, and of the covenants and agreements hereinafter contained on part of Iessee to be paid, kept anc� per-
<br /> formed, has granted, demised, leased and Iet and by these presents does grant, demise, Iease and let unto the said lessee for t�te sole ancl only purpose of exploring by �
<br /> geophysical and other methods,mining and operating f or oil and gas and of laying of pipe lines, and of�uilding tanlzs,powers,stations and structures thereon to procluce,save
<br /> nnd take care of said products, all that certain tract of land situate in the County of Hfl1.� State of NG'hZ'$e$&. described
<br /> ns follows, to-wit:
<br /> The South V'�est ��uarter ( SVJ$)
<br /> � .
<br /> �
<br /> . �
<br /> of Section �� Tou+ns�ip �.i� �. Range 1.�� �1 . and containing 1.6� acres, more or less. It is agreed thnt this lease shall remain in force �
<br /> for a term of ten years from tltis c�ate> anc� as long t�iereafter as oil or gas or eit�er of them is proc�ucecl from said Iand by lessee.
<br /> In consicleration of the premises t�ie saic� lessee covenants ancl agrees:
<br /> ist. To cleliver to the credit of lessor, free of cost, in the pipe line to whicli lessee may connect wells on said land, t1�e equal one-eighth part of all oil produced and
<br /> saved f rom t1�e leased premises. � �
<br /> 2nd. To pay lessor one-eighth ('r�) of the 9ross proceec�s eaclti year, payable quarterly, for the gas from each well where gas only is found, while the same is being �
<br /> usec� off tltie premises, anc� if usecl in the manufacture of gasoline a royalty of one-eiglith (lia), payable montlily at tjte prevailing mar}zet rate for gas; ancl lessor to have
<br /> gas f ree of cost f rom any such well f or all stoves and al�inside lights in the principal clwelling on saicl lancl c�uring the same time, by malzing lessor's own connections witli
<br /> the well at lessor's own risTz and expense.
<br /> 3rd. To pay lessor for gas produced from any oil well ancl used off the premises or in the manufncture of gasoline or any ot�er proc�uct a royalty of one-eig�th
<br /> (1/a) of the proceec�s, at the mouth of t�e well, payable mont�,ly nt the prevailing market rate.
<br /> If no well be commencecl on saic�Inncl on or before the 3rd, day of February tg�}� , this lease shall terminate
<br /> as to both parties, r�nless tlie lessee sliall on or before tliat clate pay or tencler to the lessor or to the lessor's creclit in the St.$t6 Bank O� Cairo
<br /> Bank at CA�T'U�NeLT'AS�L$ , or its sueeessors, which shall continue as the clepository regarc�less of eltanges in t{te ownership of saicl lanc�, t{te sum
<br /> o f Th i rt y Tvr a & rro`I.�� —�;— — — — — — — — — — — — dollars, whicli sl�all operate as a rental and cover the privilege o f def erring the
<br /> commencement of a well for �.'V781.V� montl�s from said date. In IiTze mnnner and upon like payments or tenders, the commencement oF a well may be further
<br /> cteferred for like periods of t�e same number of months successively. And it is understooc� and agreed that the consideration first recited herein, the down payment, coUers
<br /> not only the privilege grnnted to the date when said first rentnl is payable as aforesaid, but also the lessee's option of extending tliat period as aforesaid, and any ancl all
<br /> other rights conferrec�.
<br /> Shoulc� the f irst well c�rillecl on the nbove clescribecl Iancl be a clry Iiole, t�ien, anc�in t{tnt event, if a secon�I well is not commeneerl on saic�Iancl within twelue months
<br /> from the expiration of the lnst rental period for which rental has been pnid, tliis lease shall terminate as to both parties, unless the Iessee on or before the expiration of
<br /> saicl twelve months shall resume the payment of rentals, in the same amount and in the same manner as hereinbefore proviclecl. An�I it is agreed that upon the resumption
<br /> of the payment of rentals ns above provided, that the Iast prececling paragrapli hereof governing the payment of rentals and the effect thereof, shall continue in force just
<br /> as thou�Ii there had been no interuption in the rental payments, and if the Iessee shall commence to c�rill a well within the term of this lease or any extension thereof, the
<br /> lessee s�all have the right to drill such well to completion with reasonable rliligence and dispatch, and if oil or gas, or either of them, be founct in paying quantities, t�tis
<br /> lease shall continue and be in force with the Iilze e(fect as if sucF� well had been completed witFiin the term of years first mentioned.
<br /> If said lessor owns a less interest in the above described Iand than the entire and un�Ifvided fee simple estate t�erein, then the royalties and rentals herein provided
<br /> for shall be paid tl�e said lessor only in the proportion which Iessor's interest bears to the w�ole and undivided fee.
<br /> Lessee shaii have the rigl�t to use, free of cost, gcus, oil and wafer produced on said land for lessee's operations thereon, except water from the wells of lessor.
<br /> W�en requestecl by lessor, lessee s�all bury lessee�s pipe lines below plow c�ept�.
<br /> No well shall be drilled nearer than a,00 feet to the house or barn now on said premises without written consent of lessor.
<br /> Lessee shall pay for damages caused by lessee's operations to growing crops on said land.
<br /> Lessee shall have tl�e right at any time to remove all macTiinery and f ixtures p laced on said premises, including tl�e right to draw and remove casing.
<br /> If the estate of eitl�er parry hereto is assigned�nnd the privilege of assigning in whole or in part is expressly allowecl�tl�e co�enants Tiereof sliall extend to their
<br /> heirs, executors, aclministrators,successors or assigns, but no chnnge in the ownership o f tTie Iancl, or assignments of rental or royalties sTiall be binding on t�ie lessee until
<br /> after tl�e lessee has been furnishec� witli a written transfer or assignment or a true copy thereof; and it is �erehy agreec� that in the event t�is Iease shall be assignecl as to
<br /> a part or as to parts o( the above t�escribecl Iancls ancl t1�e assignee or assignees of such part or parts shal� fail or make clefault in the payment of the proportionate part of
<br /> the rents c�ue f rom �iim or tltem, such de f ault s�all not operate to c�e f eat or af f ect th is lease in so f ar as it covers a part or parts o f said lands upon which the said lessee or
<br /> any assignee thereof shall malze clue payment of saic� rental. In case lessee assigns this lense, in whole or in part, lessee sliall be relievec�of nll obligations with respeet to
<br /> the assignec� portion or portions arising subsequent to the c�ate of assignment.
<br /> All express or implied covenants of this lease shall be subject to all Federal anc� State Laws, Executiue Orders, Rules or Regulations, and this lease shall not be
<br /> terminntec�, in whole or in part, nor lessee held liable in c�amafles, for failure to comply therewit�, if compliance is prevented by, or if such failure is t�te result of, any
<br /> such Law, �rcler, Rule or Regulation.
<br /> Lessor hereby warrants and agrees to def end the title to the lands herein described, and agrees that the Iessee Shall ha�e the riglit at any time to redeem f or lessor,
<br /> by paryment, anyt mortgages, taxes or otFter liens on the above c�eseribed Tancls, in the event of c�efnult of pnyment by lessor, and be subrograted to the rights of the Tiolcler
<br /> thereof, and the undersigned lessors, for themselues nnd their heirs, successors, and assigns, hereby surrender and release alI right of dower and homestead in the premises
<br /> c�escribed �erein> insofnr as saic� right of c�ower nnc� homesteac� may in nny way af f ect the purposes for w�iich t�is lease is macle, as recited herein.
<br /> 1N TESTIMONY WHEREOF WE SIGN, ThLS th� Srd, day o( February . �9 �2 .
<br /> Wztnesses: --------°------------------------------------------------He11_Y'�!---Q_�.L.Llkl�.---------------------------- -
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