- Form 88— (Producers) g W OIL AND GAS LEASE
<br />Kan., Okla. & Colo. 1912 Rev. —
<br />THIS AGREEMENT, Entered Into this the— ( c,', day of -- JIl
<br />lA D JT,'
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<br />-IAMSAS BLUE PROMYCOANC. /
<br />® f lit nom a=n.tsr
<br />19%
<br />- hereinafter called lessor,
<br />and 2.- Ca Lqa-''C _ _ hereinafter called lessee, does witness:
<br />1. That lessor, for and in consideration of the sum of—One Dollars in hand paid and of the covenants and agreements hereinafter contained
<br />to be performed by the lessee, has this day granted, leased, and let and by these presents does hereby grant, lease, and let exclusively unto the lessee the
<br />hereinafter described land, and with the right to unitize this lease or any part thereof with other oil and gas leases as to all or any part of the lands covered
<br />thereby as hereinafter provided, for the purpose of carrying on geological, geophysical and other exploratory work, including core drilling, and the drilling, mining,
<br />and operating for, producing, and saving all of the oil, gas, casinghead gas, casinghead gasoline and all other gases and their respective constituent vapors,
<br />and for constructing roads, laying pipe lines, building tanks, storing oil, building powers, stations, telephone lines and other structures the necessary or
<br />convenient for the economical operation of said land alone or conjointly with neighboring lands, to produce, save, take care of, and manufacture all of such
<br />substances, and for housing and boarding employees, said tract of land with any reversionary rights therein being situated in the County of_ ,
<br />all State of -- �' -_ +- and described as follows:
<br />02 :�Q'l �_ �i '!`T,O:^ �:]._ O "s+a " ^� .. -�� _'�y,i ;1 ��_n n.n n•„ ?,�r.�. - -
<br />l- 0_-
<br />_4 J0+ +.1t" C`C artci Of JO.'-r
<br />in Section �' Township- 1 -t O" T. Range and containing L) acres, more or less.
<br />2. This lease shall remain in force for a term of —_ O- years and as long thereafter as oil, gas, casinghead gas, casinghead gasoline or
<br />any of the products covered by this lease is or car. be produced.
<br />3. The lessee shall deliver to lessor as royalty, free of cost, on the lease. or into the pipe line to which lessee may connect its wells the equal ore- eighth par!
<br />of all oil produced and saved from the leased premises. or at the lessee's option may a
<br />pay to the lessor for such one - eighth royalty the market pace for oil of
<br />like grade and gravity prevailing on the day such oil is run into the pipe line or into storage tanks.
<br />4. The lessee shall pay to lessor for gas produced from anv o❑ well and sed by the lessee for the :manufacture of gasoline or any other product as toy- ,
<br />alty '.a of the market value of such gas at the mouth of the well: if si::c ear sold by ;he ie_ ;het: 2= royalty !'a of the proceeds of the sale thereof at
<br />the mouth of the well. The lessee shall pay lessor as royalty 'a of the nroce�ds Lr,ni t - ate such at the mouth of the well where gas only is found
<br />and where such gas is not sold or used, lessee shall pay or tender a :n ,::v a -c of c:. cear:;�period during hich such
<br />g gas is not sold or used, as
<br />royalty, an amount equal to the delay rental provided in paragraph 5 hereof. -: :yhth� �..... - is so Paid or tendered this lease shall he held as a
<br />producing lease under paragraph 2 hereof: the lessor co have gas free of thecae trc:n any gas.v, :y 01'. (lie :eased premises for stoves and inside lights in the
<br />principal dwelling house on said land by making his own connections with the well. the use of ,u,h gas to be at the lessors sole risk and expense.
<br />5. If operations for the drilling of a well for oil or gas are not commenced on =aid land on or before the day
<br />this lease shall terminate as to both parties, unless the lessee shali on or before Said date pay or tender to the lessor or for the lessor's credit in the
<br />- Bank at _ �_�_f _- -'_l ;i� -_ or its successors, which. Bank and its suc-
<br />cessors are the lessor's agent and shall continue as the depository of any and all souls payable under this lease regardless of changes of ownership in said
<br />land or in the oil and gas. or in the rentals to accrue hereunder, the sum of ^'^ +�wi�i� _ - Dollars, which shall op-
<br />erate as a rental and cover the privilege of deferring the commencement of opera ;ions for drilling for a period of one year. In like manner and upon like
<br />payments or tenders the commencement of operations for drilling may further be deferred for like periods successively. All payments or tenders may be made by
<br />check or draft of lessee or any a signee thereof, mailed or de:ivered on or before the rental paying date, either direct to lessor or assigns o to said depositor}+
<br />bank, and it is understood and apireed that the consideration first recited herein, the down oaym,nt, covers not only the privilege granted to the date when said
<br />first rental is payable as aforesaid, but also the lessee S option of exter.diny that period as ann,said and any and all other rights conferred. Notwithstanding
<br />the death of the lessor or his successors in interest, the payment or tender of rentals in the manner above shall be binding on the heirs, devisees, executors,
<br />and administrators of such person.
<br />6. If at any time prior :o the discovery of oil or ,.as on this land and during the tern of this lease. the lessee shall drill a dry hole, o' holes on this land,
<br />this lease shall not terminate, provided operations fin the drilling of a we:l shall be commenced by :he next ensuing rental paying date, or provided the
<br />lessee begins or resumes the payment of rentals in the manner and amount her-einabove provided, and iu this event the preceding paragraphs hereof gov-
<br />erning the payment of rentals and file manner and effect thereof shall continue in force.
<br />7. In case said lessor owns a less interest in the above described land than the entire and undivided fee simple esnnte therein then the royalties and rent-
<br />als herein provided for shall roc paid the said lessor only in the proportion a, r!rh hi I interest bears co the whole and t nctcided fee. How et such rental shalt
<br />r
<br />be - creased at the next succeeding rental anniversary after any reversion roccurs to cover the interest so acquired.
<br />8. The lessee shall hate the right to use. free of cost, oil and -t e: found on sold 1-tr for its operations thereon, except water from the wells of
<br />the lessor. When requhed b•. lessor the lessee shall bury a p p. 1. c: r r•t -ha:l !)it, fat d n tae cats d by its operations to growing crops
<br />on said land. No well shun: be '::!led nearer than 200 fee; o the ..o - on s.:a D:cm se. trite „t r-tten ettscnt of the 1^ssor' Lessee shall have
<br />the tight at arc time our :re, or after 'lie expo anion of th.;.s :ease to 1' jc t net - :x r e } n ,•t s, b C d- es and other structures placed on said
<br />premises including i the ht to dra +t and remove all casino but :e=s t hol.be urger no of i - ion to do so jQ,straj 3esseelb�lrnder,anl vbhgathvn-ta restore.
<br />;ttje �SVrfFCCC to its V'ia7rr.Ct corx3mmr�- w�! re^ a ;atr;_trher-rM�rrs�or•ehan +,es, •core - <i ctr.•tra•opcP It oZ„ e - Airahte sleeve sac nrcc�er i#ns- },aeon %- -”
<br />9. If the estate of either r- he e o d aid he n of tin c l allowed, the covenants hereof shall extend
<br />to the her des twos. es=euto c m.❑ - and Za: n but no c1 !, .and or in the rentals or royalties or any sum
<br />due under this lease shall be bl.,'l a on Le :esz e until :t has been r. r.. h.o will, Buhr: _ho m :e_ :r. -1 recorded instrument of conveyance or a duly certified
<br />cops thereof or a certified copy of '71- of a y deceased carter and Will, probate the:,of, ci certified copy of the proceedings showing appointment .of
<br />, administrator for the es:e e o -c ec�owner ehichetrr i ;oc :•i het ails: a!' oiginal recorded instruments of conveyance or duly- certi-
<br />fied copies thereof nece=ssary :n sho :g a comp;,!, chain of title b.11.1 ��scr :o t r full interest claimed, and all advance payments of rentals made here-
<br />under before receipt of said documents s.isll be binding oil, anv direct n. ...=.sect assLnee, grantee, devisee, administrator, executor, or heir of lessor.
<br />10. If the leased premises are now or ?hall le fter be owned fit "":any or in separate tracts, the premises nevertheless shall be developed and oper-
<br />ated as one lease, and all io }-aities accruing hereander shat'. be treated as an entirety and shall be divided among and paid to such separate owners in the
<br />proportion that the acre:;, owned by each senora,, o ne bears [o the entire leased acreage. There shall be no obligation on the part of the lessee to off-
<br />set wells on separate tracts into which the land covered b, is lease may be hereafter divided by sale, devise. descent or otherwise or to furnish separate
<br />measuring or receiving tanks. It is hereby- ,greed that in the event this lease shall be assigned is to a part or as to parts of the above described land and
<br />the holder or owner of any such part or parts shall make default in the payment of the pronortimrate part of the rent due from him or them, such default
<br />shall not operate to defeat o' affect this lease insofar as it covers a part of said land upon which the lessee or any assignee hereof shall make due payment
<br />of said rentals.
<br />11. Lessor hereby wa:'rants and agrees to defend the title to the land herein described and agrees that the lessee. at its option, may pay and discharge in
<br />, -hot, or in part any rases, mortgages, or other liens existing, levied, or assessed on or against Lire above described lands and. fn event it exercises such option.
<br />it shall be subrogatct] to the rights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other
<br />lien- any royalty or rentals accruing hereunder.
<br />12 No 1 s
<br />' :t:u .c,hirg in this lease contained to the contrary, it is expressly agreed that if lessee shall commence operations for drilling at any
<br />time wit e th- lea- -s in fo ce, this :case shall remain in force and its terms shall continue so long as such operations are prosecuted and, if production
<br />results therefrom, then as long as production continues.
<br />13. If within the prinharc term of this lease, production on the leased p- emises shall cease from any cause, this lease shall not terminate provided opera-
<br />tions for the dril:ing of a well shall be commenced before or on the next ensuing rental paying date: or, provided lessee begins or resumes the payment of
<br />rentals in the manner and amount hereinbefore provided. If, after the expiration of the primary term of this lease, production on the leased premises shall
<br />cease from any cause. this lease shall not terminate provided lessee resumes operations for drilling a well within sixty X601 days from such cessation, and this
<br />lease shall ienra'.n m force during the prosecution of such operations and if production results therefrom, then as long is production continues.
<br />14. Lessen rmav It anv time snilender or cancel this lease in whole or In part by delivering or mailing such release to the lessor, or by placing same of
<br />record in the proper county. In case said lease is surrendered and canceled as to oly n a portion of the acreage covered thereby, then all payments and
<br />liabilities thereafter accruing under the terms of said lease ass to the portion canceled shall cease and determine and any rentals thereafter paid shay be
<br />tipportimned all an acreage basis, but as to the portion of the acreage not released the terms and provisions of this lease shall continue and remain in full force
<br />and effect for a❑ purposes.
<br />15. All pi,y ien, hereof, express or implied. shall be subject to all federal and state laws and the orders, rules, or regulations land interpretations there-
<br />0 f! of all governmental agencies administering tine same, and this lease shall not be in any way terminated wholly or partially nor shall the lessee be liable
<br />in damages for failure to comply with any of the express or implied provisions hereof if such failure accords with any such laws, orders, rules or regulations
<br />tot interpretations thereof,. If lessee should be prevented during the last six months of the primary term hereof from drilling a well hereunder by the order of any
<br />Constituted authority having Jurisdiction thereover, or if lessee should be unable during said period to drill a well hereunder due to equipment necessary in the
<br />drilling thereof not being available on account of any cause, the primary term of this lease shall continue until six months after said order is suspended
<br />and or said equipment is available, but the lessee shall pay delay rentals herein provided during such extended time.
<br />16. The unitieation of this lease or any portion thereof with any other lease or leases or portions thereof shall be accomplished by the execution and
<br />tiling by lessee in the recording office of said comity of an instrument declaring its purpose to unitize and describing the leases and land unitized, which unit-
<br />ization shall cover the gas rights only and comprise an area not exceeding approximately 640 acres. The royalty provided for herein with respect to gas
<br />from gas wells shall be apportioned among the owners of such royalty on minerals produced in the unitized area in the proportion that their interests in the
<br />minerals under the lands within such unitized area bear to the minerals under all of the lands in the unitized area. Any well drilled on such unit shall be for
<br />all purposes a well under this lease and shall satisfy the rental provision of this lease as to all of the land covered thereby; Provided, however, lessee shall be
<br />under no obligation, express or implied, to drill more than one gas well on said Unit.
<br />17. This lease and all its terms, conditions, and stipulations shall extend to and be binding on all successors of said lessor and lessee.
<br />IN WITNESS WHEREOF, we sign the day and year first above written.
<br />(SEAL)
<br />to d Ta to rrowin,, crops
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