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<br /> B -� OIL AND GAS LEASE '
<br /> Form 88�--(Producers) (NEBR.ASKA) �
<br /> I21262—The Augustine Co., County 6upplies, Grand Island, Nebr. p
<br /> �.
<br /> �pM THE STATE OF NEBRASKA
<br /> . ss.
<br /> Pe'Ger Schultz & wife H�.11 County,
<br /> I hereby certify that this instrument was entered on Numerical Index, and filed
<br /> for record this 6 day of AU�,U$'C'i 19 �2 .
<br /> TO at 1• 3� o'clock P• M. ���,���Q�,
<br /> Register of Deeds
<br /> Joe Wright Deputy.
<br /> Fees, $ 2 ; 3�
<br /> �
<br /> Commence
<br /> AGREEMENT, Made and entered into this 2� clay of Jan. . 1q�.2 , by and between ,
<br /> '�
<br /> Pet er Sehul tz & Emma SCYlU�.tZ� Husband & Wife — — — party of the first part, hereinafter called lessor(whether one or moreJ and
<br /> J o e Wr i�h t � —— — — — — — — — — — — — — — — — — — — — — — Part y o f the second part, liereinaf ter called lessee,
<br /> WITNESSETH, T�at the saic� lessor, for ancl in consicTeration o{ one — — — — — — — — — — — — — — — — — — — — — DOLLARS>
<br /> cash in hand paid, receipt of whicl� is hereby aclznowledged, and of tlie covenants and agreements hereinafter contained on the part of Iessee to be paid, Izept, and per-
<br /> formed, has granted, demised, leased and Iet and by tl�ese presents does grant, demise,lease and let unto said lessee,for tl�e sole and only purpose of mining and operating
<br /> f or oil and gas, ancl Iaying pipe lines, and building tanks, power stations and structures thereon to procluce,save and talze care o f said products,all that certain tract o f land
<br /> situated in the County of Hc�11. State of NEBRASKA described as follows, to-wit:
<br /> West Half of Section �;
<br /> North E�,s� Quarter of Section 7;
<br /> of Section Township 1_2 j�j Range 11W and containing �}$'Q acres, more or less.
<br /> It is agreed that this lease sl�all remain in f ull f orce f or a term of t en years f rom tliis date, and as long thereaf ter as oiI or gas, or
<br /> either of tl�em, is produced from saicl land by the Iessee.
<br /> In consideration of the premises the said lessee covenants and agrees:
<br /> ist. To deliver to the credit of Iessor, free of cost, in the pipe Iine to w�.ich Tie may connect liis wells, the equal one-eighth ('1s) part of aIl oil produced and saved
<br /> f rom the leased premises.
<br /> 2nd. To pay lessor for gas from each well where gas only is found the equal one-eighth (�/s) of tlie gross proceeds at tlie prevailing market rate, for alI gas used off
<br /> t�ie premises, said payments to be made monthly
<br /> ancl lessor to have gas free of cost from any such well for all stoves and aIl inside lights in tTie principal dwelling house on said land during the same time by making l�is
<br /> own connections witli the well at his own rislz and expense.
<br /> grd. To pay Iessor for gas produced from any oil well and used off tlie premises or in the manufacture of gasoline or any other product a royalty of one-eightTi
<br /> (I/s) of the market value, at t�e mouth of the well, payable monthly at tlie prevailing marizet price. •
<br /> 1 f no well be commenced on said Iand on or be f ore tlie 18 t', clay o f Mar ch , tq�.�.1}. , tTiis Iease shall
<br /> terminate as to both parties, unless tlie lessee on or before that date s�all pay or tencler to tl�e lessor,or to tlie Iessor's credit in The S�,c'�.��' BaI1k Of' �airo
<br /> Bank at Cairo Nebr. ot its successors,wItic6 shall continue
<br /> as the depository regardless of changes in t1�e ownership of said land, the sum of --����.�� ---------"_r__�'�' DOLLARS,
<br /> which shall operate as a rental and cover the privilege o f def erring the commencement o f a well f or 1.2 r months f rom said date. In Iilze manner and
<br /> upon Iilze payments or tenders the commencement of a well may be further deferred for Iilze perioc�s of the same number of months successively. AII sucFt payments or
<br /> tenders of rentals may be made by check or draft of Iessee 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 bank. And it is unc�erstoocl ancl agreec� that tlie eonsicleration f irst reeited herein, t�e down payment, covers not only th,e privileges granted to the
<br /> date when saicl first rental is payab�e as aforesaid, but also the Iessee's option of extending that period as aforesaid, and any and aIl other rights conferred.
<br /> Should the f irst well clrilled on the above described land be a dry hole, then, and in th,at event, if a second well is not commenced on said land within twelve months
<br /> from the expiration of the last rental period for which rental has been paid, this lease shall terminate as to botli parties, unless the lessee on or before the expiration of
<br /> said twelve month.s shall resume the payment o f rentals in the same amount and in the same manner as hereinbef ore provided. And it is agreed that upon the resump-
<br /> tion of the payment of rentals, as above proviclecl, that the last preceding paragrapTi hereof, �overning the payment of rentals and the effect thereof, sh.all continue in
<br /> Force just as though there had been no interruption in the rental payments.
<br /> 1 f said lessor owns a less interest in tTie above described land tl�an tl�e entire and undivided f ee simple estate therein, tlien the royalties ancl rentals herein provided
<br /> sliall be paicl tltie lessor only in t�ie proportion whieh his interest bears to the whole ancl uncliviclecl fee.
<br /> Lessee shall have the right to use, free of cost, gas, oil, and water produced on said Iand for its operation thereon, except water from wells of lessor.
<br /> When requested by lessor, lessee sTiall bury liis pipe Iines below plow depth.
<br /> No well sliall be clrilled nearer thnn 20o feet to the house or barn nou� on said premises, witliout the written consent of the lessor.
<br /> Lessee sha�l pay for damages caused by its operation to growing crops on said land.
<br /> Lessee shall have the right at anq time to remove aII 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 with.in the term of tliis Iease or any extension thereof, the lessee shall have the rigTit to clrill such well to completion with
<br /> reasonable diligence ancl clispatcli, and if oil or gas, or either o f them, be f ouncl in paying quantities, this lease shall continue and be in f orce with tl�e like ef f ect as if
<br /> such well had been completed withit� the term of years �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 alloiue�I, the covenants hereof sliall extend to their
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties sliall be binding on the lessee until
<br /> after the lessee has been furnished wit� a written transfer or assignment or a true copy thereof; and it is hereby agreed in the event this lease shall be assigned as to a
<br /> part or as to parts of the above c�escribecl lanc�s and the assignee or assignees of such part or parts shall fail or ma�Ze c�efault in the payment of t�te proportionate part of
<br /> the rents due from him or them on an acreage basis, such default shall not operate to clefeat or affect this 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 c�ue payments of said rentals. If tlie leased premises are now or liereafter ocuned in severalty or in separate tracts,
<br /> tlie premises, nevertheless, may be developed and 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 leased area. There shall be no obligation on the part of the lessee to of fset wells on separate tracts into which the Iand covered by this lease
<br /> may herea{ter be diuidecl by sale, devise, or otherwise, or to f urnish separate measuring or receiving tanks f or the oiI produced f rom suclt separate tracts.
<br /> Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that tTie lessee sliall liave 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 default of payment by lessor, and be subrogated to the rights of t�e holder
<br /> thereof.
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<br /> Signec�, sealecl ancl deliverecl in presenee of ____________________________________________________�1'ItIriA._._S._��.'r1�.�1tZ._.__._.._._...._.._.______......._(SEAL)
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