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<br />C�eCherry Craek 8loo� . 0-ll�6 -5 /
<br />""°=""""" "" OIL A N D GAS LEASE
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<br />"",�"°" 62
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<br />* and between
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<br />---------'--�te~-I--'---'------------'--'--- -------- '-- - ---________________
<br />.hose ----------- ---- ----- ---- -..... ------- ----- --- ' ------ ----- -------- ---- ---- -------------- ---'----- --------- hereinafter called
<br />Lessor (whether one °more.` and - xr=d.z"^""^n=ll - ----- ----- -------- --------- ---- -- -------- ----- -�- '---�
<br />----------------- ------------------ ---- hereinafter called Lessee:
<br />/.vxrxcaczo. That the said lessor, for and m consideration a_...._Forty.. and ... - - '---' �'�-�'��'�Dollars,
<br />cash m hand paid. the receipt of which *hereby acknowledged, and athe covenants and agreements hereinafter contained on part of lessee mhepaid, kept and performed.
<br />has granted, de=sed.leased and let atiaby 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 ,,th^o.. mining and operating for oil and w^. and of laying of pipe lines, and of building Willis. Power stations and "o"u=es thereon to od ce =° and .a°
<br />="�""a,�u""u."xm*=^"m�°a�l=a^im"�om the o"""*�---�JalI-'------' -'''-�-�'-------..m^*�--�.����-���. '--' .
<br />�^",/o"�",w`"°".."'°u.---- 8eotimu'�2^-�ua�o���'��^-�2�-�����'���-.---'--------. ----'-'--.-.--__
<br />'�- l^�uod_'_---'_-----_-_�______ ___________________________
<br />-- - --'--'------------'--------___--_--------
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<br />-' ''-------'---------- ---'---'- ----- ---------- _-- ..... ........ � ............. ........................................... '
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<br />2. It is agreed that this lease shall remain in force for a term of -------- 10 ------- years from this date, and as long thereafter as oil or gas or either of them is produced from
<br />said land, or front 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 deli,er 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 />leased premise%, 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 />is run into the pipe line or vito storage tanks.
<br />kb� To pay lessor for gas of whatsue,er nature or kind produced and sold. or used off the premises. or used in the manufacture of any products therefrom, one-eighth,
<br />at the market pri ce. it be well for tho gas sold, used off the premises, or in the manufacture of products therefrom.
<br />te) If a gas N-11 capable of producing gas unly and located on the above described lands or on lands with which the above desctibed lands or a portion thereof are
<br />pooled or unitized ,, it any time. hut 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 />�:e%crtheless su,.h shut-in gas well shall. under all the provisions of this lease. be d"ined to be a well on the above described lands producing gas in paying quantities and this
<br />ase shall c .... tinut. In force duriog all the time or times while such %ell is so shut in, whether before or after the expiration of the primary tem. Lessee shall use reason able
<br />diligence in inark,t t he gas capable of being produced from any such Nhut-in gas well, but shall be under no obligati6n to market such,gas under terms, conditions or circum-
<br />stances which, to Lessee's judgment, exercised in good faith, are nut for the best interests of both Lessor and Lessee.
<br />The term ",tated date" as used in this Paragraph hall mean tiny rental paying date of this lease or any subsequent anniversary thereof if there be a rental paying date,
<br />but if oo 'u"tal i:::�o,gJah- is spet3fied in ihib lease, then "stated date" shall mean ally anniversary date of this lease. If on any such stated date there he on the above de-
<br />,,,il)cd lands ,, i A, d, with bi,h the Above described lands or portion there"fliare pooled or unitized, one or more such gas wells capable of producing gas only, and no
<br />gas hils b--n Id ,, ,, used from ioty of such gas wells at it" y time during the tw Ive months period ending with such stated date, Lessee shall, before the expiration (if
<br />sixty (60) cl.�, A fler IuLh stated date, pay 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 />bv this leav, ci. "tell stated date At each such owner's address as last known to Lessee, or to the credit of each such owner in the depository bank named herein, in the man-
<br />nvr p.... ided here in for payment of delay rentals. a shut-in gas royalty for such period, which shut-in gas royalty shall be determined as follows:
<br />Tbe total allioulit If shut-in gas royalty pa)able to all such owners shall be determined by multiplying One Dollar ($1.00) by the total number of acres of land covered
<br />I,,- 'aal h-aw on .,h date, and each such owner shall receive that part thereof which is inithe proportion that his royalty acreage interest in said land bears to the
<br />t.,tal bi-r if A, of ]and co—wri by such Ica- in such stalcil dale; Provided. however, that f on such stated date this lease is being maintained in force And effect
<br />thun by ,ason if any such shut-in gas ell or shut-in gas wells, Lessee shall not be oblig,d to pay or terider Any sitch sum of money as shut-in gas ro)-alty.
<br />Till, lAnauage "a gas well .Ip,tb4, i y" As ii-d in this Section 3(c) shall mean and include a well capable of producing natural gas only or a well
<br />—pable of producine natural gas a d/ur condensate, or distillate, or a well classified as a gas well by any governmental authority or any well in which the gas-oil ratio
<br />I, , o high that a go'errint—tal anth.o.ty ill not permit liquid hydrocarbons to be produced therefrom unless the gas is marketed.
<br />4. if ol—ati is for tit,- di-illios, of a w-ell for oil or gas are not commenced or if there is no oil or gas bring produced on said land or on acreage pooled therewith as
<br />h-vinaftvi- prcoided ,,, or b,+ tie y,-ar fr n the date heleof, this lease shall terminate Lis to loth parties, unless the lessee on or before that date shall pay or tender
<br />or its °`"".rs,"hiLb shall continue as tile depository for rental regardless of changes in the ownership of said land. the su° of- .... - -- -- '_- - ------
<br />- - - - - - - - - ~ - -
<br />�zy±ry�*o� �o�Iu0~ = � = � - � ,, --= - - - DOLLARS io. if the ,.,late of either party hereto is as.signed-and the pd,flege of assigning in whole or in part is expiessly allimed—the coi,enants hereof shall ext,od to their heo,.
<br />I 'ectitols, .1drioni'tr'loN, sucti-ssurs or assigns, but no change in the ownership 'If the land, or alsigunwnts If F1,11t4i or ro),ilties shall be hindiog In the 4-swe tottil alt,i
<br />the le . ..... has 1,n furni.,hed with certified copies if inpuiruents of title deraigning title from I-sur; and it is hereby Agreed thAt in the this lvaw hAll be
<br />.11 to a part or as to F�Arts If tile al—v desevilitil lands And the assignee or assignees if such part tit parts shall fail tit snake default in the paiinvot It the p-porttoom,
<br />p-t If tile r,ots title rom him or them, such default shall notrop1rate to defeat or Affect this lease in so far its it cjii�crs a lialt u% ts if said laods wipon hi,h the ,l
<br />1—s— or any assovive thcre,)f shall make title p")mlnt of said ental. In case lessee assigns this lease, in whole or in part, cs, Eall he rehv%ed if all obligation, 0
<br />,l,t to ih, iii,ignt-d portion or p:jrtiojjs Arising subsequent tit the date of assignment. In the evei'l if death of any 1wr-n entitled to reota6 hereunder. lvisee niAN !-
<br />,,, tend It r,ntals 1. the r,,iit if the deceased or the estate if the deceast-d until such time As lessee is fumv�hA with proper c%idt-nVe of the Anpointriwnt and lu,h
<br />ficati f in .to, I, ill nsl,ator If the estate, or if then, be none. then uotil lessee is furnished Aith "idence satisfactory to it ,is to the heirs or de%i%vei of thI
<br />th-ciased. If At any time two or niore persons be ,,,filled to participate in the rental pal-Able h,,eundt,r, Le,sce may pay or tender said wntal johitv to ,Awh jW1111B, or t
<br />th.lr joint credit in the d,,po,itory "A, I ". d herein; or, At Lessee's election. the proportionate part of said rentals to uhii,h ca,h participant is entifl,cl may be tPa'd It it'-,
<br />dt-n-d to film Wparatl.ly or to his separate credit in said dupositury; And pa5ment or tender to ally PdrticiP.1111 of his portion of the rentals hereunder shall naintain thi
<br />11'ale .16 it) Such paiti6pat-t.
<br />[L LA-S-1- may, at Any flow. And from time to little, execlite and dcli�cr to Lessor or place if recoid a release or releases co%eFino either a foll intervit or an utoIi%l,hJ
<br />t,re,t ill ill or anv part if the leas,ci nes, formations or depth% unflething all or any part of the leased prvrniw� And th,,v,lpon h.,!
<br />he celic—d of a accrue ith respect to the area, zones, formations, depths or undivided interests co%crcd by su,h release. In the v,enl if a
<br />Itaxe of this lease its in All rights in Lolly a part ill tile area embraced in the leased premises, or is to ark undivided inter"t in all f0linatACHIS in All or a part of the lva—!
<br />preinis,is, livreifter the delay rentals heriinabove pro,idvd fur shall be reduced proportionately.
<br />12. When drilling, production or other onerAtions are dcla�ttd, interniptedur'r stopped fly IaLk of water, 14hor, material, inability to obtain access to leased preniisys. firt
<br />flood, star. rebellion. ilISUIn'Lli, n. not, strike. differences widt, "orkmen, fail e of carriers to transport or furrikh facilities for transportation of any product produced her,
<br />uroh.r, 1ALk 'If a,-jjlaljle or s. ti,fa,toy market, in Lessee's opinion, fur the oil or gas produced, or as a result of an order of any &o%ernsilental Agency, (including but n,-t
<br />IS i 00 1 Pi 0`1 ) which shall operate as a rental and cover the pri%ilege of deferring the commencement of operations for drilling of a well for t%el%e
<br />oth, front air] , late. I. like Fol ..... F and opon like payments or tenders the coil, tie ncement if operatt is for drilling of a �clt may be further cleferred for like period,
<br />,If the sasoe number of moudis successi— All payinents or lenders may be made by check or draft of lessee or any assignee thereof, mailed or delivered on or before the
<br />, f"tal pa�oig date. It is u 10 d and Ig c,d that the consideration first recited hvrcin� the down payment, covers,nut only the privilege granted to the date %bell said
<br />I list rental is Pa3ahle ,I Aforesaid, but il�yvl)lthe lesser's right of extending that period is Aforesaid, and any and it) otber rights conferred. Should the depository bank
<br />!r-afte, ao%e %.th.ut a or, lessee or its ii�signs may deposit rentals of ro�rjItiCS in any National bank located in the same county with the first named hank, due
<br />Wtict- of such di-pu�it to be mailed to lessor ill last known address.
<br />1. With —p—t to ill, Paylolut of and the right to receive delay rentals and royalties (including shut-in gas royalties), it is agreed that the terniination of a life estate,
<br />w ... i inint-il — oth,-r Precedent v�tatc %hi-bY the Lessor shall clinic into possession or use of an interest in said land shall, subject to all the provisionq of thi,
<br />bec,on, vif—tme from And iftk'r the date when such Lessor shall ha�e furnished satisfactory evillcrice, in Lessee showing the termination of h life estate, tcrill
<br />I 1,,jt or the, preci-d,ot -state, but for all other puropses this lease shall cover such interest as and when the Lessor shall so come ioto the possession or use of it
<br />Lessee. At it, )fit n, is hereby liken the right and power to pool or cninbirle the lAnd co—red by this lease, or any portion thereof, or funnations thereunder, as to Inl
<br />.,,.it gas, ,, either if them, vither befunti or after production, with any other land, leave or leases when in Lessee's judgment it is necessary or ad%i%able to do so in order t,,
<br />wo ly de,eb,p or operate aid p—roses, And i—p—tive of whether authority similar to this exist% with respect to such other land, lease ., leases, su�h pooling to tie nit"
<br />I ni, -5. plus an acreage tolerance of ten per cent ( 10%) of forty (40) acres, for oil, and of exceeding six hundred and ftirt�
<br />I unit or couts not tit—diog forty (40) acre S.
<br />(Ao) Acres. phis an i"r—ge toil—ol'ir If ten per .."It 110%) of six hundred and forty (640) acies, for ga except that larger units mav he created to conforin to an,
<br />11m,oIg o, ell lit PAtl that tie pi-e—ib'd bti go,crumentall anthoriti- haxi4 jurisdiction. The pooling in one or more instances iliall not exhaust the rights It
<br />,hi- L-sve I ........... I to pool this hase or porti ... is thereof, or formations thereunder. inte, other units. Lessee shall execute in writing and place If record in instrurneot
<br />— i-t—n.-ots identifying and des,,ibigolh,i p.oI,d acreage. Production. lolling or reworking operations anywhere on aunit which includes all or a part if this lease shall
<br />III- treAted As if it —, production, dri ii g or rewoiking operations under this lease. In bell If the ro)aItirs (excepting shut-in gas ro)aIties) elsewhere h ... in pecifte,l,
<br />I.es%or shall re—i%e fron, a unit so forined only such Portion of the ro5alty stipulated hetem as the amount of his acreage placed in the unit or his ro)alty interest thrielo
<br />III.— to the total Acreage so pooled ill the particular unit involved. In the Absence of production Lessee may terminate any unitized Area by filiog of record notice ot
<br />" I loati ... .... lv.,� the in,t,u,�ivot ... instruments identifOng and 115-Tilliog the unitized area contain pro%isiolis for termination upon certain contingencies.
<br />7 If prior to disco%ery of )it or gas on said land, or on acreage pooled th,re�ith, lessee should drill a dry hole or holes thereon, or if after disemery of oil or gas prodo-
<br />ti I', I b_ejtvr �Ijouid cease (or . oy c juse, this lease hall uot terminate if lessee conamences Additional drilling or reworking operations within %ixtv 60) days th'-reaft-,
<br />- (i( it tie Itbip the pi-oomy wnrl) commences or resunle, t he payment or tender of rental on or before the rental-Pa54not date next erutung after the vs.piratiAn of th,t-,
<br />,1) olowlis froi%the date of conipletion If a dry hole or cessati;ut of production. If tit the expiration ill the primary term oil or gas is not being produc!ed tin %aid land. ,,
<br />I'll a—age jehh but lessee is then engaged in d,,l ing if w.orking operations thereon, this lease shall remain in effect so long as operations are loosecot"
<br />,oh— on the �arn, ,ell 1,� ale, otf-r well thereafti-r cionmenced, with no cessation of more than sixty (60) cousectitke days, and if they jesult in the production of 1
<br />gas, thib Ica, Inji it-iniin in effcct so long thereafter As sut-h production continues. A sh
<br />If, 'A'd 't, sk-114 a le�fi intes-t fit the ibove-il,scribed land than the entire and undi%,ided fee simple estate therein. then the rotaltiet; and rental% herein pro% idt W
<br />III- pajil the 4,44 only in pmpo-tlun whit-h his interest hears to the .,hole and undhided fee. Any interest in the production from the lands herein described to which tit,
<br />o,wre,it if le,sor ritoO, 1* suhicivt �hall be deducted from the royalty herein resened.
<br />Lessee Jiull,11 li the '"'Alt to use. free if cost, gas, oil and water produced on said land for lessee's operation thereon, except water from the wells of lessor.
<br />When F,qust,rll; lessog, less" shall bury lessee's pipe lines below plow depth.
<br />No well &tll be, (Intled nearcr than 200 fect to the house or ham now on said pternises without written consent of lessor.
<br />Le'sce hall pity for dainages caused fly lessee's operations to growing crops on said land.
<br />Lessee ,hall ha%e the fight At Any liole to 111110le all machinery and fixtures placed on said premises, including the right to draw and remove casing.
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