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<br /> � B -I- OIL AND GAS LEASE . � � �
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<br /> Form 88�--(Producers) {NEBRASKA)
<br /> 21262—The Augustine Co., County Suppliea, Grand Island, Nebr.
<br /> FROM THE STATE OF NEBRASKA
<br /> ss.
<br />! V'Jalter P.Kel1_og�; �t ��. xaii County,
<br /> 1 hereby certify that this instrument was entered on Numerical Index, and filed
<br /> for record this 6 day of �'iU U$'t 9 �2 .
<br /> TO at �. :�j� o'clock P.M. � '
<br /> Register of Deeds.
<br /> Jc�e '��ri�ht � - Deputy. '
<br /> Fees. $ 2;25 �
<br /> "�
<br /> Commence
<br /> AGREEMENT, Made and entered into this I,gt daY of Apr3.l . lg �1- , by and between '
<br /> Walter p.Ke1.Io��,a single man; WaZter H.Kello�;g,a sin�Ie man & Nitah Kellogg Ward & AlPred
<br /> Ward,her hu�band
<br /> Party of t�,e first part, liereinafter called lessor(whether one or more)and
<br /> cT p 8 StJ"r i gh t Part ST o f the second part, hereina f ter called lessee,
<br /> WITNESS$TH, That the said lessor, f or and in consideration o f O n e DOLLARS,
<br /> cash in hand paid, receipt of wliicl� is �iereby acknowledged, and of the covenants and agreements hereinafter contained on t�e part of lessee to be paid, kept, and per-
<br /> formecl, has grantecl, clemisect, Zeasecl and let and by these presents does grant, demise, lease and let unto said Iessee,for the sole ancl only purpose of mining ancl operating
<br /> for oiI and gas, ant� Iaying pipe lines, and bu�lding tanlzs, power stations ancl structures thereon to proc�uce,save ancl talze care of said proclucts,all that certain tract of lancl
<br /> situatec�in the County of H&�.1. State of NEBRASKA t�escribetl as follows, to-wit:
<br /> Ea�t Ha11' of 9ou�h Ea�t Ruart�r,Sec;tian &;
<br /> of Section Township �-� N Range 1.1. � and containing g`� acres, more or less.
<br /> It is agreed that this lease shall remain in fui[ force f or a ternt of ten years f rom tl�is date, and as long thereaf ter as oil or gas, or
<br /> either of them, is produced from said Iand by the Iessee.
<br /> In consideration of the premises the said Iessee covenants and agrees:
<br /> ist. To deliver to tlie credit of lessor, free of cost, in tl�e pipe line to which he may connect his wells, tlie equal one-eig�ith (�s) part of all 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 (%a) of the gross proceeds at the preuailing marizet rate, for alI gas used off
<br /> the premises, said payments to be made mon�hly
<br /> and lessor to have gas f ree o f cost f rom any such well f or aII stoves and all inside lights in the principal dwelling house on said land during the same time by malzing his
<br /> own connections with tl�e well at his own rislz and expense.
<br /> grd. To pay Iessor for gas produced from any oil well and used off the premises or in tl�e manufacture of gasoline or any otlter product a royalty of one-eighth
<br /> (1/a) o f tlie marizet value, at tlie mouth of tlie well, payable monthly at the prevailing marTzet price.
<br /> If no well be commenced on saic� land on or before the 1.�r+ day of �'ZaT'Ctl , ig Z}4 , this lease sliall
<br /> terminate as to both parties, unless t�e lessee on or before that date sliall pay or tender to the lessor, or to the lessor's credit in The ►�. �&t@ Bank OP' ('ia,�Y'O
<br /> Bank at Cairo,Nebr or its successors, wh��h 9haI1 continue
<br /> as the depository regardless of clianges in the ownership of said land, tlie sum of �4U.n� DOLLARS,
<br /> which shall operate as a rental and cover the privilege of deferring the commencement of a well for �..� months from said date. In Iike manner and
<br /> upon like payments or tenders the commencement of a well may be further deferrec� for like periods of the same number of months successively. AII such payments or
<br /> tenders of rentals may be made by check or draft of lessee or any assignee thereof, mail'ed or cleliverecl on or before the rental paying c�ate, either direct to lessor or assigns
<br /> or to said depository banlz. And it is unclerstoocl ancl agree�I tliat the eonsicleration f irst reeited herein, the down payment, eovers not only the privileges granted to the
<br /> date when said first rental is payable as aforesaicl> but also the lessee's option of extending that periocl as aforesaid, and any and alI otTier rigT�ts eonferrecl.
<br /> Should the f irst well drilled on the above described land be a dry hole, then, and in that eaent,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> tliis lease sl�all terminate as to both parties, unless the lessee on or before tlie expiration of
<br /> said twelve months s�all resume the payment of rentals in the 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 above provided, that the Iast prececling paragmpTi Tiereof, governing the payment of rentals and the effect thereof, shall continue in
<br /> force just as though there had been no interruption in the rental payments.
<br /> I f saicl lessor owns a less interest in the above deseribecl Iancl tFtan the entire anc� unc�ivided f ee simple estate t�ierein, tlten the royalties anc� rentals �ierein providecl
<br /> shall be puicl the lessor only in tlie proportion which his interest bears to the whole and undivided fee.
<br /> Lessee shall liave the right to use, free of cost, gas, oil, and water produced on said land for its operation thereon, except water from wells of lessor.
<br /> When requested by lessor, Iessee shall bury �is pipe lines below plow depth.
<br /> 1Vo well shall be clrillecl nearer than 20o feet to the house or barn now on said premises, without the written consent of the lessor.
<br /> Lessee s�a�� pay for c�amages causecl by its operation to growing crops on saicl lancl.
<br /> Lessee shalC have the right at any time to remove all machinery and fixtures placed on said premises, including t�ie rigl�t to draw and remove casing.
<br /> 1f the lessee shall commence to drill a well within the term of this lease or any extension thereof, the lessee s1iall have the right to drill such well to completion with
<br /> reasonable diligence ancl clispatclt, and if oiI or gas, or either of them, be found in paying quantities, this Iease shall continue and be in force with the lilze effect as if
<br /> such well Fiacl been completed within the term of years herein first mentioned.
<br /> If the estate of either party hereto is assignecl, ancl tlie privilege of assigning in whole or in part is expressly allowecl, the eovenants hereof shall extend to theer
<br /> heirs, executors, administrators, successors or assigns, but no change in the ownership of the land or assignment of rentals or royalties shall be binding on the lessee until
<br /> af ter the lessee has been f urnished with a wrFtten trans f er or assignment or a true copy thereo f; and it is h,ereby agreed in the event this lease shqll be assigned as to a
<br /> part or as to parts of t�ie above described lands and the assignee or assignees of such part or parts s�all fail or make default in the payment of the proportionate part of
<br /> the rents due from liim or them on an acreage basis, such default shall not operate to clefeat or af fect 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 due payments of said rentals. 1f the leased premises are now or hereafter owned in severalry or in separate trdcts,
<br /> the premises, nec�ertheless, may be developed and operated as an entirety, ancl tlie royalties sliall be paid to eac1� separate owner in the proportion that the acreage owned
<br /> by Tiim bears to tTie entire leased area. There shall be no obligation on the part of the lessee to of fset wells on separate tracts into wTi�oh the land covered by this Iease
<br /> mdy hereafter be divided by sale, devise, or otlierwise, or to furnish separate measuring or receiving tanks for the oiI produced from such. separate tracts.
<br /> Lessor herebv warrants and agrees to defend the title to the [ands herein described, and agrees that the lessee shall have the right at any time to redeem for lessor by
<br /> payment, nny mortgages, taxes or other liens on the above described lands, in the event of default of payment by lessor, and be subrogated to the rigl�ts of the holder
<br />, thereo{.
<br /> -------------------------------------------------------------G'JaI_t er---P._K el l ogg------------------(SEAL)
<br /> Signed, sealed and delioered in presence of .............................................................�_al�eT..H...K.e1lc�gg____.._.._:______.(SEAL)
<br /> ------------------------------------�--------------�----------r1i--��---I{el Io.��...War�.._.._......(SEAL)
<br /> ---�------------G.C._Raven_..as----�a_..�1a1_ter.._�'_.Ke11-og�---and------- ------------------------------------------------------------A1.Pred__V'Iard-----------...--------------------(SEAL)
<br /> --�-------------W.�.�,.�e�---H_._K_ell.a��--------------------------------------...-----�-------.._......-------- --------�------------------------------------------------�----------------------------------......------._...-----------------------(sEAL)
<br /> ---�------------EMO�ine---Chene�r---as----t--°--._.T1it.ah...Ke�I�.�€�..V'rRrcl -------�-------------------------------•-------------------...-------------------.._...---------------------------.._.......-------(SEAL)
<br /> ---------------anc�---Al_�'recl__Ward----------------._....--------...-----•---...------------�---....--�-�---- ------..._...------------------�-------------------------------------------------------�-------------(SEAL)
<br /> --•----------------------------
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