|
i
<br />Cherry Cr®ek County
<br />PRODUCERS as
<br />40 640
<br />REV 7 59
<br />OIL AND GAS LEASE
<br />A
<br />AqIt8 WENT Made and entered into the 16th day of April,.
<br />by and bcMten Pats J. Rasmuss(k4 and Mice Marie Riksmussen, husband >}md. xvife
<br />3a�
<br />N -1140
<br />NSAs kut himCdAw-
<br />1R a +miwwx vknatK.-
<br />19 �Z -
<br />whose mailing address is _ CAIro, Nebraisks, _» _ _ _ _ _ _ _ t _ _ _ _ _ _ bemialpftor called
<br />Lessor (whether one oemore) and -Fred MoConnoll
<br />_ I _ Tu l sa,s _CklooI _r _ _ _ _ » _ hereinafter called Lessee
<br />1 W1T1f:SSETIf That the said l�ssor for and in consideration of Forty -one and 20/100 _ » _ » _ » _ Dollars
<br />C4gb in hand paid the rrcetpt of which is hereby acknowledged and of the covenants and agroemenb hereinafter contained on part of lessee to be paid, kept and performed,
<br />has granted Alcmised leased and leeand by these presents does grant, demise lease and let unto the said lessee for the sole and only purpose of exploring by geophysical
<br />and other methods mining and, operating for oil and gas and of laying of piPe lines and of building tank% power stations grid structures thereon to produce save and take
<br />e
<br />care of said products all that center tract of land situated in the County of �al » _ state,(_
<br />described as follows to wit S-14- ot104 5 _ UN-1.0' _ _ _
<br />» » _ Swtih 212 Uroa of *- Seottom 5 12I I 11W�
<br />N1t - SW Section 15 __1ZJT-11W __ -
<br />of Section Township _ Range » _ _ and containing AM _ » _ __ __ _ _ acres more or less
<br />2 It is agrttd that this lease shall remain In force for A term of L" 10 _ 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 dchtcr t4 the credit of lessoy free of cost in the pipe line to which lessee may conned hit, wells the equal one - eighth part of all oil produced and saved from the
<br />leased premuas or at the lessees opupre wry pay to the lessor for such on"Ighte royalty the market price for oil d like jrrade and gravity prevailing on the day such oil
<br />is, No into the pips line or into storage tank!.
<br />(b) To pay lessor for gas of whatsoever notpre or kind produced and sold or used off the premtses, or used in the manufacture of any products therefrom one - eighth
<br />at the market price at the well for ;he gas sold used off the premises or in the manufacture of products therefrom
<br />(c) If a gas well capable of roducing garcpnly and located on the above described lands or on lands with which the above described lands or a portion thereof are
<br />pooled or unitizt d is it any time s�ut in And no gas therefrom s sold or used off of the above described lands or in the manufacture of natural gasoline or other products
<br />ntttrtheless such shut in i.at well shall under all the provisions of this lease be deemed to be a wep pia the above described lands producing gas in paying quantities and this
<br />It use shall continue in force during ell 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 Ras capable of bemtt produced from any such shut to gat well but shall be tinder no o ligation to market such gas under terns conditions or cucum
<br />stances which in Lessee t )u 61TIMt, exercised Ip good faith are not for the best interests of both Lessor an Lessee, e
<br />The tern stattAl date' as jiseel, in this paraj is .raph hall mean any rental paying date of th lease or any subsequent annlvclsary thereof if there be a rental paying date
<br />but if no rental pi) rig date is specified in this }eise then stated Al Ate shall mean ang anniversary date of Ilia lease If on ypy such stated date there be on the above de
<br />scribed lands or on ands kith vyh)ch the above described lands or portion thereof are pooled or unitized, one or more such gas wells capable d producing gas only and no
<br />9to has beta sold or so used from any of such 6glt wells at any time during the twelve months period endm$ with such stat4 date Lessee shall before the expirijtion of
<br />sixty (60) dais after sucb stated gate pay or lender to each owner of the njht to receive royalty on the gas produced from qny part of the above described lands covered
<br />by this le tie on such stilted date at each such owner s address as last known to Lessee or to the credit of each such owner m depository hank named herein m the man
<br />nu prodded htreiq for payment of delay rtntals a shut m gas royalty for such period which shut in gal royalty shall be de animas as follows
<br />The total amount td shut in gas Malty payable to All such owners shall be delgrmined by multiplying Qne Dollar ($1 00) y the total number of acres of land covered
<br />by said base on such it its 4 dates, and each such owner shall receive that part thereof which is in the proportion that his royalty acreage interest in said land bean to the
<br />total nuinbtr of acres of lord covtfed by such lease on such stated dale Provided however that if on sucb stated date this lease u being maintained in force and effect
<br />rthtrwise than by reason of env such shut in as well or shut m gas wells Lessee shall not be obliged to pay or tender any such sum of money as shut in gas royalty
<br />The language a get telll ctpi4>le of pproducm g only as used in this Section 3(('c) shall mean And mclude a well caktpble of producing natural gas only or a well
<br />ri able of prodacin natural Ras andloc condensate or distillate or t well dasxGed at a Ens well by any goveromtntal a thonty or any well in which the gas oil ratio
<br />is so hi6h that, a SoRemmental authority will not permit liquid h)dmcarbons to be produced therefrom unhss the gas s marketed.
<br />4 If operations for the dialling of a well for oil or gas are not commenced or if thcr4 is no oil or Ras being produced on said land or on acreage pooled therewith as
<br />hertmiltar protdcd on or before one ytar from the date hereof, this lease shall terminate as to both parties unless the lessee on or before that date shall pay or tender
<br />to the lessor or to the lessors credit in the Stat$I BaAk of Cairo - - - flank at „ Cairog, Nabraska -
<br />or its succtssofs which shall continue as the depository for rentak regardless of changes in the ownership of said land the sum of » _
<br />- Ono -ht dred -thraa and no/100 -, t - I w er rr . s se ,r r a we_ ,. w._ R R +n . ,w . m r w w r DOLLARS
<br />t 3
<br />103.00 ) which shall operate as a rentals and cover the pndlege of defemng the commencement of operations for drilling of a well for twelve
<br />months from said date In like manner and upon like payments or tenders the commerectment of operations for drilling of a well may he further deferred for I" periods
<br />if the same ngmbW of months successivel)i All payments or tenders may be made by check or draft of lessee or any assignee thereof, mailed or delivered on or before the
<br />trial pa)inR date It s understood and agreed that the consideration fast recited herein the down pa
<br />menu covers not only the privilege granted to the date when said
<br />first rent is pa ) able its aforesaid but also the lessees right of extending that period at, aforesaid and any and all other rights conferred. Should the depository bank
<br />It At ifttr close without a successor lessee or its assigns may deposit rentals or royalties in any National bank located in the same county with the first named bank due
<br />notice of such deposit to be mailed to lessor at last isnown address
<br />A ith respect to the payment d rind the nghit to 'receive delay rentals and royalties (including shut in gas royalties) it is agreed that the termination of a life estate
<br />term mineral interest or other precedent estate whereby the Lessor shall come into possession or use of an interest in said land shall, subject to all the provisions of this
<br />1 ace become eifectnb from and after the date when such Lessor shall have furnished satisfactory evidence to Lessee showing the tenninahon of such life estate term
<br />u intnl nittwst or other precedent estate but for all other puropses this lease shall cover such interest as and when the Lessor shag so come into the possession or use of it
<br />6 Lessee at nh option is hereby Riven lherright and power to pool or combine the land covered by this lease or any portion thereof or formations thereunder as to oil
<br />lid Lis or either of the in. either before or after production with any other land lease or It uses when in Lessees judgment it is necessary or advisable to do so In order to
<br />jpjxrly dttelij) or optratb said prtmisis ind ivespective of whether authontY similar to this exists with respect . t o such other land lease or leases such pooling to be into I
<br />well I)rllr nr Unlr• roe a %Ceenmg InriY l'tVl aura prix tin l'rrexC wreiunte en ycr t rice lavA/ awry lvvr ',ca, a V.y nn nw c was a,>< aeunwca anv ,u,ir
<br />40) acres plus an acreage tolerance eiY ten per cent (10°(0) of ax hundred and forty (640) acres for gas except that larger umb may be created to conform to anv
<br />tong or well unit pattern that may be prescribed by gmtrnmental authorities hating Jurisdiction The poolm In pate or more instances shall not txhaust the rights of
<br />the Lessee htrrUnder to pool this lease or portions thereof or formations thereunder into other unih Lessee shall execute in writing and place of record an instrument
<br />it instruments idtntif)mg and describing the pooled acreage Production drilling or reworking operations anywhere on a unit which includes all or a part of this lease shill
<br />he It attd as tf it w m production drilling or reworking operations under this lease In lieu of the royalties (excepting shut in gas royalties) elsewhere herein specified
<br />Lessor shall reane prorn a unit so formed only such portion of the royalty stipulated herein as the amount of his acreage placed m the unit or his royalty interest therein
<br />I, in to the total ac {ease so pooled in the particular unit intolved In the absence of production Lessee may terminate any unitized area by filing of record notice of
<br />t rmmatloq un)ei�f the instrument or instruments identifying and describing the unitize contain prodsions for termmabon.upon certain contingencies.
<br />If prior to d1a %airy ;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 o0 or Ras produc
<br />stun thtrr ttt sholeld disc fqr any cause this lease shall nn. terminate if lessee commences additional drilling or reworlunt operations within sixty (60) dais thereafter
<br />r �iY t i withfu 4,p Votary term) commences or resumes the payment or tender of rental on or Aare the rentdpa)ihlt datepext ensuing after the expiration of three
<br />3) n)t�tht frotd tlw 4ate of completion of a dry hole or ctssitnon of production If at the fxpiration of the ptimpry term ofl or ¢as to not being produced on said land or
<br />n CACi� cry 4,4*4 (WN qh hot le see is then engaged in drilling or reworking operations thereon thi'l leasers all remai n 16 effect so loner as operations are prosecuted
<br />idler u� itpp ��sqq SS il� II or anv other well thereafter commenced, with no cessation of more than sixty (60) consmutivp days, and A they result in the production of oil
<br />r g it,9thi� ieiisk�sb Alllg remain in tfftet s0 long thereafter as such production continues,. ., .�
<br />A If p�dsb tuvigs h $s! Ant( in the above described land than the entire and undivided fee simple aestate thereinr then the io)alties and rentals heron provided shall
<br />! t aaidd the 1e Dr onftt h�pinpurtiott which his Interest Mars to the vvbgle anal undhidett fee At* interest m the production from the lands herein described to whtcb the
<br />nit r�iy^af� less mi�Xr}! j�asil shall M deducted from the royaltlo herein reserved v 6
<br />J scab s sll�.�i�t/p, r,? .Q! Weise free of cost; sake oil, and wate8 produced on said land for lessee s operation thereon except water from the wells of lessor
<br />W�( lessee shall bury lessee s pipY itnej below plow depth t It a
<br />Neat neanr than 200 feet to the house or �arq now qn said premises without„wntten consent of lessor
<br />LesseW 4All nays 141 damag+el caused by lessee s operations tq Rrov�lnjl irons oir said land. % `t .
<br />Lessleeshall 1, any the,righ all any time to reTow au maghincry arpi fixt(ires plac i�on said premises including the right to draw and remove casing
<br />10 If the estate of other party hereto s asugned }and the pri0ege of "a m wA,ole or in parkas expressly allowed -the covenants hereof shall extend to their heirs
<br />cxectdur3j atlmimstralurt, suet ssor� of assigns, but no change in ilia ownership of the land or wsngnmeuts of rental or royalties shall be binding on the Itsste until ifttn
<br />the Itssee hr J)eed fifrrpshed with gerlifned copies of muniments of title deraigmng tide from lessor and it a hereby agreed that in the event this lease shill he assigned
<br />is to a part or as t(r purls of the above described la ds and the assignee or assignees of such part rw parts shall fail or make default in the pa) mint of the proportionate
<br />t art of the rtJit�du f oln him or diem such defaul shall not operagte to defeat or affect this lease in so far as It covers apart or parts of said lands upon whmh the said
<br />1 sire or a assignt� t erjrof (halt make due pa)me Df said renta4 Io case lessee assigns this )ease in whole nr in part lessee shall M relieved of nH obligations with
<br />n Ise AA to th}? a,SSUj,Jnta portion or portions arising subsequent to the date of assi¢nmenR In the event of death of any person entitled to renttls hereunder hsxe may pt)
<br />it ttndtt such renta lT lb ,fie credit of the deceased or the estate cal the deceased until such time as lessee s furnished wide proper tvidencir of the
<br />appointment and quah
<br />frc ihnn of in executor or administrator of the eslAlei or )f there M 9ans4 theq until 1}sseej a fnrpiilied with ev)dgnce satisfactory to it as to the burs or alts tsees o! the
<br />dice ased If it any time two ep more persons lib untitled to participa a in tllisee rental payable hereunder Lessee may pay or tender said Iental )onity to such persons or to
<br />the it Joint credit in the d posnfory+ named herein! or at Lessees election the proportionate part of said rentals to which each participant s entitled may he paid or ten
<br />dtred to firm separately or to his saparate credit in said depository; and payment or ttnder to any participant of his portion of the rentals hereunder shall maintain this
<br />lease as to such p.Irtncipant. -,
<br />I1 Lessee may at my time and frarq time to time exen to and deliver to Lessor or place of record a release or release covermq either a full interest or an undhided
<br />interest in all or Any part of the le sea premises or in an) one or more zones formations or depths underhnna all or any part of the leased premises and thereupon shall
<br />be ahead of oil obligations thereafter to accr4q with respect to the area zones formations. dept)is or undivided igteTests covered 'by such release In the avail of • re
<br />I tie cif this leas as to all nj fits in on y a p in of the area embraced in the leased premnses or as to an undivided interest m all formations in all or a part of the It ased
<br />prt ?lariat i(htfaa gt�it%o relay ferftplt! tvivipabovis Provided for shall 'fie reduced proportionately
<br />1� rn efrt)!itnin prnducttoI�( nr tit�ly,ern ratmny pre dela ed, tnterruptrd or stopped by igch of water )phori rr)alenal, igafiibty to obtain acceu to leased premises fire
<br />flnne, it refxlltpny Inplir4y,tiya near sir ce d)ffgrenyts wit► workmen fiailure of rtarriers to transport Or furpu ipeihties (n. lrgnspoftation of any product prnndducrd hear
<br />unt]tf lac1; of as4ilaj)]e qr sSlttsfaclgry m4r-ti iq' es{ees opgtson, for tee oil: qr gas produced, or Al p result 4 no ordeg of any governmental agency, (mchding but not
<br />r. d i F r V r{ e
<br />°a4
<br />1
<br />3 e7
<br />
|