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OIL AND GAS LEASE °�� '
<br /> Containing iqoo Printed Words
<br /> Producers 88 Special F.L.B. i-q2
<br /> 21897—The Augustine Co., County Supplies, Grand Island, Nebr.
<br /> FROM THE STATE OF NEBRASKA
<br /> ss.
<br /> �i&i� County,
<br /> Ch�,r1PS Dergunz, aingle
<br /> 1 hereby certiJy that this instru,ment was entered on Numerical Index, and f iled
<br /> TO for record this 2?j day of March 19 �#2 •
<br /> at 3 o'clock �, M. �
<br /> c1 .�,.ROYJZ&.21C� Register of I�eeds.
<br /> �. �eputy.
<br /> � Fees, � 2��Q
<br /> AGREEMENT, Mnde and entered into the 3�.8�� day o� Januar3' . �9 �2
<br /> by and between CharJ_es Derganz,a sin�le raan
<br /> of Caira, Mebr�S�a hereinafter callad lessor (whether one or more), and J .A.F.ot�land
<br /> hereina`ter called lessee:
<br /> WITNESSETH: Tl�at tlie said Iessor,for nncl in consicleration of One �t rJ0�1,�)� — — — — — — — — — — — — — — — — — — Dollars,
<br /> casli in hand paid, the receipt of which is �ereby aclznowledged, and of the covenants and agreements hereinafter contained on part of lessee to be paid, kept and per-
<br /> formed, �ias grnnted, demised, Ieased and let and by these presents does grant, demise, Iease and let unto the said lessee for the sole and only purpose of exploring by
<br /> geophysical and otTier methods,mining anc�operating for oil and gas and of laying of pipe lines,and of building tan�s,powers,stations and structures thereon to produce,save
<br /> and take care of saic� proclucts, nll tT�at certain tract of land situate in the County of HaL1- State o{ Nebraska described
<br /> as follows, to-wit: ^
<br /> � �i
<br /> AI.I that part aP the Plorth Ea�t �uarter of Section Nine�een I�rin�; south oP the C. B.& Q.R,R.and �'
<br /> a1.1 that part aP the Plorth V�e�t �,uarter oP Section Nlneteen Iyir�g south of. the C.A.&. q.R.R.
<br /> and east of the City �P Cairo,rtebras�:a.
<br /> �
<br /> r �
<br /> of Section �.� Towns�ip I.� N. Range 1.� ��. ancl containing �5 acres,more or�ess. It is agreec�t�tat tFtis Iease shall remain in force
<br /> for a term of t�21 years from this date, and as long therenfter as oil or gas or either of tliem is proc�ucecl from snid land by Tessee.
<br /> In consic�eration of the premises the saic� lessee covenants and agrees:
<br /> ist. To deliver to the credit of lessor, free of cost, in the pipe Iine to whicl� lessee mny connect wells on said land, the equal one-eiglith part of all oil producecl and �
<br /> snved f rom tlie leased premises. C1
<br /> 2nd. To pay Iessor one-eighth (1/s) o f the �ross proceeds each year, payable q uarterly, f or tlie gas f rom each well wTiere gns only is f ound, wTiile tlie same is being �
<br /> usecl off the premises, anc� if usecl in the manufaeture of gasoline a royalty of one-eighth (1/a), paya�ile monthly at t{te prevailing marizet rate for gas; anc�lessor to �iave
<br /> gas free of cost from any sucli well for nll stoues and nll inside lights in the principal cZwelling on said land during the same time, by making lessor's own connections witli
<br /> � the weTl at lessor's own risk and expense. '�
<br /> 3rd. To pay lessor for gas proc�ueecl from any oil well and usec� off the premises or in the manufacture of gnsoline or any other product a royalty of one-eighth �
<br /> �1/s� of the proceec�s, at the moufh of the well, payable monthly nt the prevailing mar�et rate. �
<br /> I no well be commencecl on saicl Iancl on or be ore the Z S t� clay of e7$P.UAr i �
<br /> f f 3 y 9 4� , this lease sjtall terminate
<br /> as to both parties, unless the lessee shal�on or before that c�ate pay or tencler to the lessor or to t�e lessor's ereclit in t�ie $t&t",8 Bank oY Cairo,
<br /> Bank at Ct�i ro,Dlebraska , or its successors. which shall continue as tlie c�epository regard�ess of changes in the ownership of said land, the sum
<br /> of Nineteen BC i�O�1.U�J — — — — — — — — — — — — — — clollars, which s�all operate as a rental ancl cover tl�e privilege of c�eferring the
<br /> eommencement of a well for tV�1@7.V� months from saicl date. In lilze manner anc� upon lilze payments or tenclers, the commencement of a well may be further
<br /> cleferrec� for like perioc�s of the snme number of months successively. Ancl it is unc�erstooc� anc� agreec� t�iat the consicleration (irst recitec��ierein, the down payment, covers
<br /> not only the privilege granted to the c�nte when snic� first rental is payable as aforesnic�, but also the lessee's option of extending that perioc� as aforesaid, anc� any anc� all
<br /> other rigTits conferred.
<br /> Shoulc� the f irst well c�rillec�on t�e nbove deseribec�Iancl be a clry hole, t�ien, anc�in thnt euent, if a seeoncl well is not commencecl on snid Ianc�within twelne months
<br /> from the expiration of the last rentnl period for which rental has been paid, tl�is lease shall terminate as to both parties, unless tlie lessee on or before tlte expiration of
<br /> said twelve months shall resume the payment of rentals, in the snme amount nnd in t�ie snme manner as hereinbefore provided. And it is agreed that upon the resumption
<br /> of the payment of rentals ns above provic�ecl, thnt the Iast prececling paragrapli hereof governing t�e payment of rentals and t�ie effect thereof, shall continue in force just
<br /> as thougl� there had been no interaption in the rental payments, and if the lessee shall commence to clrill a well within the term of this lease or any extension thereof, tl�e
<br /> lessee shall have the right to c�rill such well to completion witli reasonable diligence and dispatch, ancl if oil or gas, or either of them, be founc� in pnying quantities, this
<br /> lease shall continue ancl be in force witli tlie lilze ef fect as if such well had been completect wtthin the term of years first mentioned.
<br /> If saic� lessor owns a less interest in the above clescribed Iancl than t�e entire anc� unc�ividec� fee simple estate therein, then the royalties anc� rentals herein proviclecl
<br /> for shall be paid the said Iessor only in tlie proportion wliich lessor's interest bears to the whole and unclivicled fee.
<br /> Lessee sliall Iiave the right to use, free of cost, gas, oil and water produced on said land for lessee's operations thereon, except water from the wells of lessar. ,
<br /> When requested by lessor, lessee shall bury Iessee�s pipe lines below plow depth.
<br /> No well sl�all be clrilled nearer tl�an 20o feet to the liouse or barn now on said premises without written consent of lessor.
<br /> Z.essee shall pay for c�amages causecl by lessee�s operations to growing erops on saicl lancl.
<br /> Lessee shall have the right at any time to remove all machinery anc�fixtures placecl on saicl premises, incluc�ing the right to c�raw anc�remove casing.
<br /> If the estate of either party hereto is assignec�.-�and the privilege of assigning in w�iole or in pnrt is expressly allowecl.-,tT�e covenants hereof shall extenc� to their s« ' w
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership o f the land, or assignments of rental or royalties shall be binding on the lessee until
<br /> after t�ie lessee has been furnishec� wit� a written transfer or assignment or a true copy t�iereof; ancl it is hereby agreec�that in the event this lease shall be assigned as to
<br /> a part or as to parts o f the above cleseribed lancts anc� the assignee or assignees o f suc h part or parts shall f ail or make cle f ault in tFie payment of t�ie proportionate part o f
<br /> the rents clue from �im or t�iem, such clefnult shall not operate to clefeat or af fect this lease in so far as it covers a part or parts of saicl Iands upon wliich the saicl Iessee or
<br /> any assignee thereof s�all make cZue payment of saic� rental. In case lessee assigns this �ease, in whole or in part, lessee s�all be relievec�of all obligations with respect to
<br /> t�ie assignec� portion or portions arising subsequent to the c�ate of assignment.
<br /> All express or impliecl covenants of this lease s�all be subject to all Fec�ernl nnc� State Laws, �xecutive Orclers, Rules or Regulations, and this lease sjtall not be
<br /> terminatec�> in whole or in part, nor lessee helcl Iinble in damages, for failure to comply tlierewith, if compliance is prevented by, or if such failure is the result of, any
<br /> sucli Law, Orcler, Rule or Regulation.
<br /> Lessor hereby warrants and agrees to defend the title to the Iands lierein describecl, and agrees that the lessee shall liave t�e riglit at any time to redeem for lessor,
<br /> • by payment, anr�/mortgages, taxes or ot�ier liens on the above c�escribec�lanc�s, in the event of clefault of payment by Iessor, and be subrogratec� to the rights of the holc�er
<br /> thereof, and the unc�ersignecl lessors, for themselues anc� their heirs, successors, nncl assigns, hereby surrencler ancl release all right or clower anc� homesteac� in the premises
<br /> �escribec� herein, insofar as snicl right of clower ancl homesteac� mny in any way nf f ect the purposes for which tliis lense is macle,as recited�ierein.
<br /> 1N TESTIMONY WHEREOF WE SIGN, This the 3�-g t� day oJ J anuary . ,9 �2 •
<br /> W�tnesses: Charl.es...Der�anz..........................
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