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PRODUCERS ee
<br />40-640
<br />REV 3.59
<br />OIL AND GAS LEASE
<br />3'
<br />N -1100
<br />MAKSAS BLUE PRIMT CO. CHC.
<br />AGREEMENT Sfade and entered into the ..... ..2+ __ day of... . .... -- . Februarq - -.- - -- -. _....._.......... ._. --------- .- .. . .. . .. . ......... . 19 62...-
<br />by and between _...._.... _- .L.awrenclei Oil_ - -Rol of son and ..- N_a.ihal.ie.. -A.- Rol of son, . -- husband- _and - -- wife,.._.
<br />Box - 253....- - - - - - -- - - -
<br />,shore mailing address is Carlo, . Nobra.ska -. .. .-- .. ..... .. ..... .. ..... ._... ........... .............. --- ----- - -. - - - - -- ... -.._ ._.. , hereinafter called
<br />1_.cssur ( whether one or more), and .. ._ ... . Fred - McConnell... _ - ._._.. _. .
<br />01st. oma_.-.-- -----. - - -- - --_ . .. .--- .... .... -. - _. hereinafter called Lessee:
<br />N'
<br />I. ITNESSETH: That the said lessor, for and in co s
<br />consideration of . Thirty . Six- - and .. Rio / 100- - Dollars,
<br />cash wit hand pAd, the receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on part of lessee to he paid, kept and performed,
<br />has gr.,tded, denuscd, leased and let and 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 wither method,, uuoung and operating for oil and gas, and of laying of pipe lines, and of building tanks, power stations and structures thereon to produce, save and take
<br />care of said products, all that certain tract of land situated in the County of -._... .._..Hai 1. .... _... _.... . -.. .. _. -.__ --------- ...___- , State of .. Nebraska- .. - - -- _-- - ----
<br />described at rnllwaw,, m -wit: .... -- -. -E NtN ; -.. W2 . * • N Sf _ of... Se -et ion- 33 - .Twp..- 12,... R, 12,. -- and-- .- ._ ..... ......... .. . ... ..... . . . . ..
<br />. ........ S -jN Ea ;... NEINEt--- - - - - -- -- ---------- - - - -.. -_.... .......... .... - - -- ------------- - - - - -- ............. _..... . - - ----------- .
<br />- - - - - -- - - - - - - .r� ...... ....... - - ............. - - - -- --- - - - - -- - -- - - - -- - - - -- -- - - - - -- -- -- .......... ..._ - - - - -
<br />- of Section -5 -- Township . 1 l __...... -... Range .... ... lG------------ and containing .. --'- -..- 360--- - - - - -- _ - -- - --- ..- __.... ------ acres. more or less
<br />'. It is agr,•ed 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 from ]•rods with „haeh said land is pooled therewith, by lessee.
<br />3. In consideration of the premises the said lessee emenants and agrees:
<br />(a) To dclo -, 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 Prelillse,' or at the lessee's option, may pay to the lessor fur 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 or line or ruto 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 market pnc•e it the well for the gas sold, used off the premises, or in the manufacture of products therefrom.
<br />(c) If a gas w,11 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 />pooled or unitved is, at any tone, hill 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 />luverthrlc„ such shut -win gas well shall, under all the provisions of this lease, he deemed to he a well on the above described lands producing gas in paying quantities and this
<br />au• shall roulinu,• to force during all the time r times while such well is sn shut in, whether before or after the expiration of the primary term. Lessee shall use reasonable
<br />diligence to wit.. rket lit, gas capable of being produced from any such shut -in gas well, but shall be under no ubligatnon to market such gas under terns, conditions or circum-
<br />stances which, to Lessee's ludgment, exercised in good faith, are not for the best interests of both Lessor and Lessee.
<br />The term "stab .I 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 />but of no rout.,, pa)uac late I, specified in this lease, then "stated date" shall mean any anniversary date of this Ie,lse. If on any such stalled date there he on the above de-
<br />u•nbed lands war m lands with which the abnye described lands or portion thereof are pooled or unitized, one or more such gas wells capable of producing gas only, and no
<br />gas has been sold o ti used from tiny of sa,h gas wells at any time during the twelve months period ending with such stated date, Lessee shall, before the expiration of
<br />uxt• 160) d.q, after such stated date, pay or tender to each owner of the right to receive royalty on the gas produced from tiny part of the above described lands covered
<br />by this Iva- win such stated late 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 />ner pros wiled hereon for payment of delay rentals, a shut -in gas royalty for such period, which shut -in gas royalty shall be determined as follows:
<br />The total a nu lot of shut -in gas ,,,all)- payable to all such owners shall be determined by multiplying One Dollar ($1.00) by the total number of acres of land covered
<br />tin ,.ud lease eon such stated date, and each such owner shall receive that part thereof which is in the proportion that his royalty acreage interest in said land bears to the
<br />total mi It.r of i of land covered be such lease on such stated date; Provided, however, that if on such staled date this lease is being maintained in force and effect
<br />..the -I'e than be n a-ii of env such shut -in airs well or shut -In gas wells, Lessee shall not be obliged to pay or lender any such sum of money as shut -in gas royalty.
<br />'live language "a gas well capable if producing gas ont•" as used in this Section 3(c) shall mean and include a well capable of producing natural gas mrly or a well
<br />capable f producing le•n
<br />g natural gas nd•or e,nisate, or distillate, or a well classified as a gas well by any governmental authority or any well in which the gas -oil ratio
<br />ei co high that a gosornmrntal authority will not permit liquid h)drocarhnns to be produced therefrom unless the gat is marketed.
<br />4. If operations for the drilling of a well for nil or gas are not commenced or if there is no nil or gas being produced on said land or on acreage pooled therewith as
<br />hereinafter pros idrd on war hefnre• one rear from the elate 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 It -woe's credit in the - State Bank. of _ Cairo _ .. . . Rank at - _Cairo, NeLJraska -- -- --- - -- - - - -- . - . .
<br />or its succeuors, which shall continue as the depository for rental regardless of changes in the ownership of said land, the sum of ... - ..__._.. __ ............. ... _.._............ -..
<br />N inty and no�100- - - - - . - - - . - _._ -.- - .. -- _ - - - - -- - _ DOLLARS
<br />�•� - - - - -- DO L RS
<br />a S .70.00 _ ) which shall operate as a rental] and cover the privilege of deferring the commencement of operations for drilling of a well for twehe
<br />numth, from said date. In like manner and upon like payments or lenders the commenn•mrnt of operations for drilling of a well may be further deferred for like periods
<br />,lot sane• number of nn anths successively. 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 />,total p.ay ing date. It is understood and agreed that the consideration first recited herein, the down payment, covers not only the privilege granted to the date when said
<br />lint rental is pgahle as aforesaid, hilt also the lessee's right of extending that period as aforesaid, and any and all other rights conferred. Should the depository bank
<br />hen•.aftev close walnut a suw,cewo,, lessee or its assigns may deposit rentals or royalties in an) National bank located in the same county with the first named bank, due
<br />notice of ,,tell deposit to be mailed to lessor at last known address.
<br />With respect to the pa)—wt of and the right to receive delay rentals and royalties (including shut -in gas royalties), it is agreed that the termination of a Ile estate,
<br />term numeral 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 />Lase, become effective from and after the date when such Lessor shall have furnished satisfactory evidence to Lessee showing the termination of such life estate, term
<br />mineral interest war other precedc•ul estate, but for all tither purnpses this lease shall cover such interest as and when the Lessor shall so conic into the possession or use of it.
<br />h. Lesser, it is option, is hereby given the right and power to pool or combine the land covered by this lease, or any portion thereof, or formations thereunder, as to nil
<br />and gas, or either of them, either before air after production, with any other land, lease or leases when in Lessee's judgment it is necessary or advisable to do to in warder to
<br />properly develop ti oll-ate sud pre nu,r,, and irrespective, of whether authority similar to this exists with respect to such other land, lease war leases, such pooling to be into
<br />well unit war unrt+ not exceeding tort, 1 10) acres, plus an acreage tolerance of ten per cent (1c0 %) of fora- (40) acres, for oil, and not exceeding six hundred and fort
<br />640) acres, plus an acreage tolerance of ten per cent (l0°)) of six hundred and forty ( 610) acres, for gas, except that larger units may he created to conform to any
<br />ig or well unrt p.nitern that ,,.a,- he pn•„ ribrd 1- govrnunrntal authorities ha, ing )un,dictinn. The pooling in one• or more instances shall not exhaust the rights of
<br />,he Lesser herw let to pool this ilease r portions thereof, air formations thereunder, join other units. Lessee shall execute in writing and place of record an instrument
<br />,,r in'tria at, identdying and describing (lie pooled acreage. Production, drilling or reworking operations anywhere on a unit which includes all or a part of thil lease shall
<br />I,e treated is if it were production, drilling or reworking operations under this lease. In It,-,, of the royalties (excepting shut -in gas rmaltie•s) elsewhere herein specified,
<br />Lessor ,hall recei,e from a unit so funned only such portion if the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein
<br />hoar, to the total aertagr so pooled in the pi rticolor unit involved. In the ah,ence of production Lessee may terminate any unitized area by filing of record notice of
<br />n rnan.atie :n unless :h,• irntrument or in,tnnne:its identifying and describing the unitized arcs contain prmvisions for termination upon certain contingencies.
<br />If pour to dw : v ,`,,f nit or gas on said land, or on acreage pooled therewith, lessee should drill n dry hole or holes thereon, or if after discovery of oil or gas prodac-
<br />...n. thereafter hotly ceay. fair any cause, this lease ,hall not terminate if lessee commences additional drilling or reworking operations within sixty (60) days thereafter,
<br />.n if i(,be within ihe•primary lean) conunencr, or reaune, the payment or tender of rental on or before the rental - paying date next ensuing after the expiration of three
<br />3 � moulhc from the date if completion of a dry hole war cessation of production. If at the expiration of the primary term oil or gas is not being produl -d on said land, or
<br />nai .ucmago panicd, Iherew ilh, but lessee is then •ocagrd fn drilling or reworking operations thereon, this lease shall remain in effect so long as operations are prosecuted,
<br />euhdr on the same v ell war .mv other well thereafter conunenced, with no cessation of more than sixty (60) consecutive days, and if they result in the production of nil
<br />air aas, this lease shall ,gnu oil .in effect so Inns thereafter as such production continues.
<br />S. If stied It.".x,,,eowne a le•vit mtcrost in the ;above- described land than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided shall
<br />e paid t r less, f�rr mvh in, nrnpnri fun which his interest hears to the whole and undivided fee. Any interest in the production from the lands herein described to which the
<br />uIterest ill hs wr m.ay be Subject shall be deducted from the royalty herein resened.
<br />9. Lessee 'hall'hhve lion 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 />When requested by lessor, lesser shall bury lessee's pipe lines below plow depth.
<br />No well ,hall he drilled neater than 200 feet to the house or balm now on said premises without written consent of lessor.
<br />Eraser shall paw for damages caused by lessee's operations to growing crops on said land.
<br />Lessee .shall have the right at any time to re rnme all machinery and fixtures placed on said premises, including the right to draw and re•mmye casing.
<br />I(1. if the estate of either party herein is ,assigned -and the privilege of assigning in whole or in part is expressly allowed -the cmvnants hereof shrill extend to their hear,,
<br />xecuturs, administrators. successors or assigns, but no change in the ownership of the Land, or assignments of rental war royalties shall he hi -hog win the Irserr until after
<br />the Ic„ee has been furnished with certified copies (if muniments of title deraigning tide from lessor; and it is hereby agreed that in the event this Iran• shall lie assigned
<br />.a, In a part n- a, to parts f the above• described lands and the assignee or assignees of such part or part, shall fail or make default in the ptv neat of the proportional,
<br />part of the rents fur from him air them, such default shall not operate to defeat or affect this lease in so fair its it covers a part or parts :,f said lands ,Pon which the said
<br />Ie, +ee it arty assigner thereof shall milk,- due pa)nsent of said rental. In case lessee assigns this lease, in whole or in part, lessee ,hall he reli-ed of all obligations will,
<br />respect to the assigned portion or port;wans arising sol —quo lit to the date of assienment. In the event of death of any parson entitled to rrnt.0% hereunder, lessee ma) p al,
<br />war tender such rentilc to the credit of the deceased or the estate of the deceased until such time as lessee is famished with proper evidence of the anpouriment and mah-
<br />fuatinn of ,, ex.e•cuuo war uhu,nistrator (if the estate, or if there he nrnve, then until Ieuee is furnished with evidence satisfactory to it as In the heirs or devisees of Ili,
<br />deceau•d. If it anv time two or more persons be entitled to participate in the rental payable hereunder, Lessee may pay or tender said lentcl jouuty to ,u wa
<br />rich persons r toy
<br />their jwanit c,vdit an the depnuto- named herein; or, at Lessee's election, the proportionate hart of said rentals to which each Participant is entitled may he paid or ten-
<br />dered to hun •p.arately air to his separate credit in said depository; and payment or tender to any participant of his portion of the rentals hereunder shall maintain the
<br />Iral,e :1s to aucsh partacnpaut.
<br />it. Lesser mass at .any tjnu•, and from time to tittle, execute and deliver m Lessor or place of record a release or releases covering either a full interest or an undnid i
<br />interest m all war .oiv part of the leased premises or in any one or more zones, formations or depths underlving all or any part of the leased premises and thereupon shall
<br />be relieved of all obligations thereafter to accrue with respect to the area, zones, formations, depths or undivided interests covered by such release. In the event of a re-
<br />lease of this lease as to all tights in on!v 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 the leased
<br />preinnes, thereafter the delay rentals hereinabme provided for shall be reduced proportionately.
<br />12. When drilling, production or other onerations are delayed, interrupted or stopped by lack of water, labor, material, inability to obtain access to leased premises, fire,
<br />flood, w.u, rebelho n, in +m yes ti. n. riot, strike, differences with workmen, failure of carriers to transport or furnish facilities for transportation of any product prat uce•d her,• -
<br />under, lack of available or , tt,factory market, in Lessee's opinion, for the oil or gas produced, or as a result of an order of any governmental agency, (including but not
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