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<br />Cherry 0raek Block
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<br />OIL AND GAS LEASE
<br />_________
<br />* and ^emc" -. �°��m�o-�azu�.°���,�&°_�"ss^_�^u=."n&.^n,�w:Lf~'______
<br />-'- ----- -- - Iite °'2_'_'-'--'------- --- ........ ......... ..... -- --- -'-' - ---'
<br />,hose mailing address is SbaIboo+_ _'�ebrauba_ '- ------- ---- --'_ .... --' --. .... ..... - - '-
<br />Lessor (whether one ~m^re). and ' - F�ad�KoGozuuaIl -- ---_' -'--------
<br />- --'
<br />0-l]��5
<br />----.-_.___,z9�L-
<br />-_-----___-_---7�Ioa^-OkLa1ioua-a '--- --- ------- --------- ------ -_ --- ----- -- _----_- --------- called Lessee:
<br />1.oxrxoxsra. That the said lessor, for and in consideration of -...... 1j.0.- Dollars,
<br />ca h i" hand paid, the receipt Of which * hereby acknowledged, and ofthe covenants and agreements hereinafter contained "" part � lessee mb" paid, kept and pta~m°d.
<br />has granted, demised, leased "*'et and ^' these presents does grant, demise, lease and let onto the said lessee for the "le and only purpose of exploring by geophysical
<br />and other methods, ../"*x and operating for oil and u^". and of laying of pipe lines, and of b"oumg ,=m' n°",, 'm^°ns and structures 'here"" to n"u"ce. ,=" and take
<br />`"re of said products, all that certain tract of land situated m the County of --' Hall - --- -- ----- ------ -'-'' -'' ................ --.state of-Eebruaba-------,
<br />described =u^*~"."�~*.---� of Semtio/z'I?^-Tcn��ship-I2�-R'-Iazq��I2;
<br />' � = cozd ��«�� o� Su��iozz��v �uvmoubi� Il �� I�z4�� I2�J^`.'' �� -------------- ' _-
<br />--'f� -^-- ---'-°^~' - - �- - ' ' `-' ' -�--'[�-
<br />-'-/-.� -- ------ and' �ud' of ' Section- 28,-Township- Run6a'I8;J _)f! - ----- -'---
<br />-- - �������'--'---- ------------'
<br />Of'��iuo I, lI �� ��
<br />---------'- ---
<br />--- ---------------
<br />_L It is agreed that this lease shall renain �inforce fo a 7lem O�f ----- � ........ years from this date, and as long thereafter as oil or gas or either of them is produced from
<br />said land, or from lands with which said land is pooled therewith, by lessee.
<br />3. In consideration of the premises the said lessee covenants and agrees:
<br />a) To deliver to the credit of lessor, free of cost in the pipe line to which lessee may connect his wells, the equal one-eighth part of all oil produced and saved from the
<br />I premises. or at the lessee's option, may pay to the lessor for such one-eighth royalty, the market price for oil of like grade and gravity prevailing on the day such oil
<br />!CSasen, into the pipe line 0, into storage tanks.
<br />(b) To pay lessor for gas of whatsoever nature or kind produced and sold, or used off the premises, or used in the manufacture of any products therefrom, one-eighth,
<br />,it the ma rket price at the well for the gas sold, used off the premises, or in the manufacture of products therefrom.
<br />(c) If a gas well capable of producing gas only and located on the above described lands or on lands with which the above described lands or a portion thereof are
<br />j�ool,d or onili2,cd ii. lit any time, shut in and no gas therefrom is sold or used off of the above described lands, or in the manufacture of natural gasoline or other products,
<br />eve rthcic,s such shut-in gas well shall, under all the provisions of this lease. be deemed to be a well on the above described lands producing gas in paying quantities and this
<br />1, ase shall continue on force during all the time or times while such well is so, shut in, whether before or after the expiration of the primary term. Lessee shall use reasonable
<br />diligence to market the gas capable of being produced from any such shut-in gas well, but shall be under no obligation to market such,gas under terms, conditions or circum-
<br />stances which, it) Lessee's judgment, exercised in good faith, are not for the best interests of both Lessor and Lessee.
<br />The term "stated date" as used in this paragraph hall mean any rental paying date of this lease or any subsequent anniversary thereof if there be a rental paying date,
<br />],,it if to rental p.,3ooz date is pecified in this lease, then "stated date" shall mean any anniversary date of this lease. If on any such stated date there be on the above de-
<br />,cribcd lands or on lands with which the abovv described lands or portion thereof are Pooled or unitized. one or more such gas wells capable of producing gas only, and no
<br />ujs has been sold Or SO Used from ally of such gas wells at any time during the twelve months period ending with such stated date. Lessee shall. before the expiration of
<br />—ty (60) days after such stated date�n or tender to each owner of the right to receive 'royalty on the gas produced from any part of the above described lands covered
<br />bo, this lea ooe on such st.ited date at ca such owner is address as last known to Lessee, or to the credit of each such owner in the depository bank named herein, in the man
<br />o;, provided herein for payment of delay rentals, a shut-in gas royalty for such period, which shut-in gas royalty shall be determined ais followst
<br />The total amount if shut-in gas to5alty payable to all such owners shall be determined by multiplying One Dollar ($1.00) by the total number of acres of land covered
<br />he said lease in such coted date. and each such owner shall receive that part thereof which is in the proportion that his Valty acreage interest in %aid land bl,krs to the
<br />t,,tal nuniber Of acres Of land entered by 5itch lease on such stated date; Provided, however, that if on such stated date this lease is being maintained in force Ind effect
<br />,otherwise than by reason of any such shut-in gas well or shut-in gas wells, Lessee shall not be obliged in pay or tender any such sum of money as shut-in gas royalty.
<br />ille language "a gas well cap;ible of producing gas only". as used in this Section 3(c) shall mean and include a well capable of producing natural gas only or a well
<br />(apable of producing natural gas and/or condensate, or distillate, or a well classified as a gas well by any governmental authority or any well in which the I gas-oil ratio
<br />is sin high that a goNerinnental aothOrity Will not permit liquid iv�drocarhons to be produced therefrom unless the gas is marketed.
<br />4 ' I! operations for the drilling of a ivell for oil or gas are not commenced or if there is no (oil or gas being produced on said land or on acreage pooled therewith as
<br />provided on or before t e Year from the date hereof. this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender
<br />~ the lessor ".m the lessor's credit r the --' 'Gtetu --- Bank. of'Geiro----- o"am- -. Cuiro^'11ebra-uka- ----- - ------- ---- ------ ------
<br />.
<br />° its successors, which shall continue "" the depository for rental regardless of changes /" the ownership of said land, the sum a ............... ........... - ..... ....................... ...
<br />Ona'IbznGrmd 'MJrt�r' Five- uod.- oocc^ns its assigns may deposit r
<br />which hall op,.ratc as a rental and cover the privilege of deferring the commencement of o rations for drilling of a well for twelve
<br />a mcot of operations for drilling (if a , , may be further deferred for like periods
<br />d itie. in like liner and upon like payments or lenders the commenct six
<br />of lbv arne nuniberof months socc,ssi—ly. All payments or lenders may be made by check or draft Of lessee Or any assignee thereof, mailed or delivered on or before the
<br />-, hi Pa5ing date. t is und-st.oll and agreed that the consideration first recited herein, the down payment, covers not only the privilege granted to the date when satcl
<br />ft -said, a ask
<br />r4 rental is payable is aforesaid, but also the lessee's right of —tendingithat period as afon, nd any and all Other rights conferred, Should the depository b.
<br />to enta is or royalties in an� National bank located in the same county with the first named bank. due
<br />�'x, of ".^ deposit m m °°.," = lessee lessor at '"", "=°" ="°~.
<br />5. With respect to the payment of and the right to receive delay rentals and royalties (including shut-in gas royalties). it is agreed that the termination of a u"
<br />term mineral interest or other precedent estate %hereby the Lessor shall come into possession or use of an interest in said land shall, subject to all the PIOV isions of this
<br />become effective from and after the (fall- when such Lessor shall have furnished satisfactory evidence to Lessee showing the termination of , inch life estate, tern,
<br />nont-ral interest or other precedent estate, but for all other puropses this lease shall cover such interest as and when the Lessor shall so come into the possession or use of it,
<br />8. Lessee, at its Option, is hereby given (he right and power to pool or combine the land covered by this lease, or any portion thereof, or formations thereunder, as to oil
<br />and gan. or either of them, either before or after production, with any other land, lease or leases hen in Lessee'sJudgment it is necessary or advisable to do so in order to
<br />develop or operate said premises. and irrespective of whether authority similar to this exist% with respect o such otherland, lease or leases, such pooling to he into
<br />.r well unit or units not exceeding forty (40) acres., plus an acreage tolerance of ten per cent (10%) of forty (40) acres, for oil, and not exceeding six hundred and fort%
<br />, 640) acres, plus an acreage tolerance of ten per cent ( 10%) of six hundred and forty (640) acres, for gas, except that larger units may he created to conform to an,
<br />spacing or well unit pattern that ma%* he prescribed by governmental authorities baving juri�diction. The pooling in one or more instances shall not exhaust the rights of
<br />lit* Lessee hen-tinder to Pont this lease or portions thereof, or formations thereunder, into other units. Lessee shall execute in writing and place of record ,in instrument
<br />or instruments identifying and describing the pooled acreage. Production, drilling or reworking operations anywhere on a unit which includes all ora part ofthislease shall
<br />he treated as if it were production, drilling or reworking operations under this lease. In licit of the royalties (excepting shut-in gas royalties) elsewhere herein specific(l.
<br />L r t1h.11 c,i,r from a unit son formed Only such portion Of the royalty Stipulated herein as the amoont of his acreage placed in the unittoor his royalty interest therein
<br />1—im . "be total acre.we so pooled in the particular unit involved. In the absence of production Lessee may terminate any unitized area y filing of record notice of
<br />o-no'n.1tion u nless the ins t rument or instruments identifying and describing the unitized area contain provisions for termination upon certain contingencies,
<br />7. If prior to disc(ovey of oil or gas on said land. or on acreage pooled therewith, lessee should drill a dry hole or holes thereon. or if after discovery of oil or gas produc-
<br />tion
<br />,or (if it for within file primary lerm) commences or resumes the payment or tender of rental on or before the rental-paying date next ensuing after the expiration of thre,
<br />el) moritliq from the date if c.:npletion of a dry hole or cvs�ation of production. If at the expiration of the primary term oil or gas is not being produced on said land. ,,
<br />ac�ttage p..I,-d tK-r—ith. Int I c,see is then engaged in drilling or reworking opoerations thereon, this lease shall remain in effect so long as o;serations are prosectoud
<br />" in #h 11 Or air%- other svell thereafter commenced, with no cessation of more than sixty (60) consecutive days, and if they result in the production (if i�ll
<br />rviin in effect so long thereafter as such production continues.
<br />S. If svt�i Iessor owrif k ess intere,t in the above-describled land than the entire and undivided fee simple estate therein. then the royalties and rentals herein provided sh�d
<br />he Paid the lv%ifmi, �,Iilv in proportion which his interest blearx to the whole and undivided fee. Any interest in the production from the lands herein described to which th,
<br />interest (if lessoi may be subject shall be deducted from the royalty herein reserved.
<br />9. Lessee shall have the right to use. free of cost. gas. oil and water produced on said land for lessee's operation thereon, except water from the wells of lessor.
<br />%%'hen requested by lessor. lessee shall bury lessee's pipe lines below plow depth.
<br />No vo,01 shall be (billed neater than 200 feet to the house or bam now on said premises without written consent of lessor.
<br />Lessee hall pay for damages caused by lessee's operations to growing crops on said land.
<br />Lvisce shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
<br />10. If the estate of either party hereto is assiVned—and the privilege of assigning in whole or in part is expressly alltiwed—the criveriants hereof shall vxtend to their hi-IT,
<br />t xecutorq, adniitristrW irs, Successors or assigns, but no change in the ownership of the land. or assignments of rental or royalties shall be binding on the Ie"ve until aft,
<br />the lessee has been furni,hed with certified copies of muniments of title deraigning title from lessor; and it is hereby agreed that in the e%vot this lras, AlAl he assle,�
<br />to a p A or as I t of the above described lands and the assignee or assignees of such part or parts shall fail or Make default in the pavint-ot of the prnportion.o�
<br />it re a F�a`ins him mr them, -such default shall not operate to defeat or affect this lease in so far as it covers a part or parts of said hoids upon which the s.-,
<br />Part if the nts doe
<br />lessee or any assigner thereof shall make due pa�nooent of said rental, In case lessee assigns this lease, in whole or in part, lesser shall be relieved of all obbitations 'I
<br />respect to the asOgned portion or portions ari�ing subsequent to the date of assignment. In the event of death of any person entitled to nvotals licieurider lessee 111.1y
<br />(or tender inch rentals to the credit of the deceased or the estate Of the deceased until such time as ]"ree is furnished with proper evidence (if the appointment and quall
<br />fication of in exectolor Or administrator of the "late. or if there he none. then until I-see is furnished with evidence satisfactory to it as to the livirs or dv%isces if it,
<br />deceased. If at any time two or more Persons be entitled to participate in the rental payable hereunder, Lessee may pay (or tender said rental jointy to slich Prnq or t
<br />their joint credit in the depo�itory named herein; or, at Lessee's election. the proportionate part Of said Tentals to which each participant is entitled may be paid or te,
<br />dered to him separately or to hii separate credit in said depository; and payment or tender to any participant of his portion of the rentals hereunder shall maintain th,
<br />lease as to such pairticipant.
<br />11,
<br />he rvlic%vd of all Obligations thereafter to accrup with respect to the area, zones, formations, depths or undivided interests covered by such release. In and �
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<br />lease Of this lease as to all rights in only a part of the area embraced in the leased premises, or as to an undivided interest in all formations in all Or a part of tho- I,-
<br />premills. hereafter the delay rentals hereinabove provided for shall be reduced proportionately.
<br />12. When drilling. prodoction or other oncrations are delayed, interropted or stopped by lack of a
<br />"�, /"a a available or ^.^v=^� °=xa in Lessee's "w"m" m, m" "^ or gas produced, �as" result m an order of any governmental agency. (including "° ~'
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