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Cherry Crook block
<br />FRODUCLIR11 00 OIL AND
<br />40,640
<br />.IV.
<br />GAS LEASE
<br />X1135 .1 X-/
<br />kwFiRmcalw-
<br />1. 1 Ain"
<br />AGREEMENTMade and entered into . . ..... April -- -_ - ----------- --- --- - ---- ------_-------- ------ ---- -- - --------------- --------- . .............
<br />by and bct%e*n.__._.-..Bdward- 1r•
<br />..........._._._...1 I HteAs ... 1 .... ......... .. .. ........... I ------- ---------- - -------- ........ . . ..... . . ....... .............. . ---------- --- ---- -
<br />whose mailing siddrats 10ra , ska... .. . ............ _ .. ........ . ... . ................. ....... - ....... . ........ _ ------ - _ _--_--- -- — ---_------ hereinafter, could
<br />lessor (whether one at more). and .......... .......... .. . . . .......... _ ............ . ..... . . .... . ..........
<br />- ----- - _- hereinafter Caw 14me..
<br />1. WITNESSETH: IJAI the said lessor, for and In confideradoo olght_ and, noA00-—- An- Dolton,
<br />cash in hand paid, the receipt of which is hereby sdUV6wWVd. and of the covenants and agreements hereinafter muthined on pan of lessee to be pad, kept and performed,
<br />has granted, demised, leased and let and by those Presents does grant. dcogso. low and Jet unto the said truce for the wit and only purpose of exploring by geophysical
<br />and other methods. mining and operating for oil and 9*4 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 tew of land.situaled in the County of ............... voll .......... .... -- ----- ------ ---------- ------------- state ot. N#braak& - - ------------ -
<br />dies"i4ed as follows. . .... . ........ ------ - ---- - ------- ---------- - ...... ........ -- - --------- - - --- ----------------
<br />..... ---------------- . . ....... .... . ...... .._..- . . ........ - ----------- --------
<br />of Section ... ...................... Townsllip la Ranga_--12 - ___ — and containing 280 . . . . ....................... .. ... ............. __ ....... . ....... Acres, more W ICSL
<br />1. It is agreed that this %caw shall remain in force for a term of from this date, And sl• tons thereafter . of or gas or either ad them is produced from
<br />said land, or frond lands with which said land is Pooled therewith, by lessee.
<br />S. In eon,ader&tLun of the p[tMis,, the Said lessee CQVCU&Dt$ and agrees:
<br />(a) To deliver to the credit of lessor, free of cost in the pipe live to which lessee may conned kit weft the equal one-eighth pan of all op produced and saved from the
<br />Ica" preell, or at the lessee's option, may pay to the lessor for such one-cighth royalty, the Market prig for oil of like mile issid gravity prevailing on the day such oil
<br />it '" into rpipe line or into storage tanks.
<br />(b) T &X It-sw for gas -1 whatsoever nature or kind produced and - or used off the permiscs, or used in the trualufacturst of any products therefrom, one-eighth.
<br />As the market at the well for the gas sold, used off the liveraisM or ill 11!�msmufaduro of products therefrom.
<br />(c) If A gas well capable of producing gas only and located on the above described lands or on lamb with which the above described lands or a portion thereof are
<br />pooled u"itia•d is, at any time, sbut.in and no s: therefrom is sold or used off of the above described lands, or is the manufacture of natural gasoline or other products.
<br />,." elWA lath shut -in gas well shall, under all provisions of this lease. be deemed to be a well on the above described UrAs producing gas in paying quantities and this
<br />Irasal shall continue in fort* during All the tiroft of times WU* such well is so shut in whether before or after the expiration of the try term. Lessee shag use reasonable
<br />diligence to market the t:as.copable of being produced from Any such shl-In X" ;vA but shag he under no obligation to market sucirtgal; under terms, conditions of circum-
<br />staneca which, is Lessee a judgment. exercised in good faith, am not fat best Interests of both Lessor and we.
<br />The term "stated date" as used in this paragraph hall mean any rental paying date of this lease or any subsequent anniversary thereof it there be a rental payi),ff date,
<br />but if no rental paying date is specified in this lease. then "stated date" shall ityrais any anniversary dote of this lease. It on any such stated date them be on the above dis-
<br />wriht,•d lands or On lands W4 which the above described lands or Portion theileal are pooled or unitized, one or more such gas wells capable of producing g: only, and no
<br />cos has &�n sold or w used from any of such gas wells At any time during the twelve months period ending with such stated date. Lessee shhl(llb close I cirpiratioas of
<br />sixty (60) days, after such stated date. Pay or tender to each own" of the right to receive TOY#Jty on the gas produced from any Pon of the above described lands covered
<br />Is 'a address as 184 known to Lou". or to the credit of each such owner is the depositor
<br />by this leave on such stated date at each sue owner depository bank named herein. Is the man -
<br />ner provided herein for PaYrnent of delay rentals, a shut-in gas royalty for suck period, which abut -in gas royalty shall be determined his follows:
<br />The total amount Of shut-in gat royalty pay-able to all such owners shag be determined hL multiplying One Dollar ($1.00) by the total number of acres of land covered
<br />by %aid It•aw on such stated date. and each suds owner Shad receive that pan thereof wb Is is in the proportion that his royalty Acreage interest in said land bears to the
<br />total nioul-ir of act,v Of land covered lig such It-ase, on stick stated date. Provided. however, that if on such stated dote this lease is being mainWried In force ard effect
<br />othe?'*4 than by reason of oil such shut -in gas well Og shut-in gas wens, Lessee shall not be obliged to pay or tender. any suck sum of Morley as shut-in KAS royalty.
<br />The language -a gas well caplleu%; QZucing gas only". as used in this Section $(c) shall Mean and include a well capable of producing natural gas only or it wen
<br />capable of producing natural coo andior condensate, or distillate, or a well classified as a gas well by any governmental authority or any wed in which the gas-od ratio
<br />is so high that a governmental authority will not permit liquid hydrocarbons to he produced therefrom unless the sto is marketed.
<br />4. if Operations for the drilling of a well for oil or rat are not commenced or if there is no oil or gas bring produced on said I" or an Acreage pooled therewith as
<br />hereinafter provided on or before one year from the date hcrrof. this It-aso shall terminate as to both parties. unless the lessee on or Wore that date shall pay or tender
<br />to the lessor or to the lessm*s,credit in the ..... Fir.st ... National .... . . ... ........ hank at grand -- Island,... Nebraska-
<br />or its successors, which stag continue as the depository for rental regardless of changes in the ownership of said land, the sum of .............................. ..... ........ ..... ..............
<br />Seventy- and- noA DOLLARS
<br />n,n —,t. ---& -rental .. and cover the privilege of deferring the commencement of o for drilling of a well for twelve
<br />'S 70-00 .... . ........ .... ) " "'tl`mll� further deferred file like periods
<br />months inZesTurdate. In like Manner and upon like payments or tenders the commencement of Operations foiridri.11ing of a well in before 4 the tattle lumber Of months successl%ely. All payments or teriders. MAY be made by cluck or draft of lesser Y assignee the=. mailed or delivered on or be the
<br />rental paying data It is understood and Agreed that the consideration first recited herrin, the down payrrit-tit, covers not only the privilege granted to the date when said
<br />first rental is payable its aforesaid. but also the lessee *$ right of extending that period as aforesaid, and any and all other rights conferred. Should the depository bank
<br />hereafter close v:itholul,& successor. lessee or its assimns MAY deposit rentals Or royalties tit any National bank located in the same, county with the first named bank. due
<br />notice of sit,)% deposit to be mailed to lessor at last known address.
<br />s. %vitb •," to the payment of and the right to receive delay rentals and royalties (including shut-in goo royalties), it is agreed that the termination of a life estate.
<br />it-rns mirk•ral interest or other precedent estate whrrehy the Lessor shall come, into possession or use of in interest in said land "I. subject to all the provisions of this
<br />h-ase, becornip 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 or other precedent estate, but for all Other PurOPW2 this least shall cover such interest as said when the 'Lessor shall w come into the possession or use of it.
<br />R. L,-%sce, At its option. is hereby given the right and power to pool or combine the land covered by this leam, of any Portion thered, or formations therrunder- as to oil
<br />and gas, or either of them, either More or after production, with any other land, lease or Iraws when in Lessee's judgment it is necessary or advi,able to do so in order to
<br />jimix-fly dt-Nrlop or Operate said pri-miu-s, And irrespective of whether authority similar to this exists with respect to such other land, lease or leases, suchl)oolinx to be into
<br />.1 well unit or units not exceeding forty (401 acres, plus an acreage tolerance at tee Per cent (101x) of forty (40) acres, for oil. and not exceeding six hundred and forty
<br />son) acres, plus an acreage tolerance of ten per cent ( 10%) of six hundred and forty (640) Acres, fnr ras, except that larger units may he created to confor, i to any
<br />M well unit pattern th.d May be prescribed by governmental authorities having jur"iction. Ile pooling in one or More instances shag not exhaust the titht, of
<br />th.. L-iser hereunder to Pool this lcaw no- portions thereof, or formations thereunder. into Other units. Lrm* shall execute in writing and Place Of record an instrument
<br />instruments identit'vins and describing the pooled acreage. Production, drilling or reworking nperatinnis Anywhere on a unit which includes an are part of this le:* shall
<br />treated as if it Aim production, drillins or reworking operations under this least. In lien of the royalties (excepting shut -in SAN royalties) elsewhere herein
<br />r,s,ir shall rv,,xivr from a unit sal formed only such portion (A the royalty stipulated herein as the amount Of his acreage he unit or his royalty interest therein
<br />art to the total acreace, %a pooled in the particular unit involved. To the absence of production Lessee MAY terminate any unitised area by filing of record notice at
<br />imination Ltnh•ss the instrument or instruments identifying and describing the unitized area contain, provisions for termination upon certain continstencief.
<br />If prior to dit,"KerY of 41 or gas on said land. Or on Acreage pooled therewift lessee should drill a dry hole or holes dberront or it after discovery of oil or gas produc-
<br />%on thereafter sliould craw file any cause. this lease shah sent terminate if less" commences additional drilling at reworkin operations within sixty (60) days thereafter,
<br />.•r (it it he within the primary term) commences no. resumes the payment or tender of rental on or before the rental-poyin1LVt.P�M;x2 ensuing after the expiration of three
<br />i I I mooths from the date Of completion of a dry hole co, cessation of production, if at the expiration of the primary term on or was is not being produced on said land. or
<br />�,n acreass, poolrd therewith, hilt lessee in then enizaard In drilling or reworking opt-ations thereon. this lease shall remain in Wed so long as operations are prosecolk-d.
<br />itber on 4; savixf well or ant other wen thereof" commenced, with no cessation of more than sixty (00) consecutive days, and it they result in the production of oil
<br />it rks, this leaW.shall remain is effect so long thereafter as such production continues.
<br />. , _W, interest and rentals herein proOided shall
<br />R. 11 %a;A Wt #raw 4 interest in the abirve-desc6l" land Chas the entire and undivided fro simple eftle thercUL the* the n
<br />Pq to the whole and undivided fee. Any Interco is the production from the lands herein descril" to which thi,
<br />4,12duhimuln WfFroeu, ill-eiroyalty herein reserved.
<br />Q. Geiger h Il be i IU 1 .40* to free of Bost. M ON and water Produced on said land for Inset's operation thereon, except water from the wells of lessor.
<br />Ui J� lissat. leat" Ouill burv, lessee's pipe Urses below- plow deptL
<br />Urbro reillk
<br />No well lbollet .4
<br />T110 twArer.than 200 feet to the house or UUM now on said premises without written consent of lieum-
<br />Lrtu4 slij _dAM4)1A-2 clsuself,by lesser operations to growing crop on said land. w sai� nr.'r cosine.
<br />Lessee A riot at any time to remove all machinery and fixtures placed on said premism including the riot to draw
<br />. 10"i IL I- . .
<br />10. if tho eta I party brorto is assigned -and the Privilege of assigning in whole or in part is expressly stowed-the covenants hrreuf shall extend to their heirs,
<br />- I r t Issue la-ClAtUrtf At MI successors or assiltni. but no change in the ownership of the tared, or assignments of rental of royal &%AR he hiridillit OR the It U until After
<br />the lessee puts furnished w certified les Of muniments of title deraignInA title from lessor, and it Is hereby agreed Mot in the event this leaw hall he assigned
<br />.it to a 12alf or as to Xvr :srnU lauds and the assigner or assignees of such part Or parts shall. rail or make default in the pasnit-sit 1-1 the pre,portiunAte
<br />part J) the to d F= or.tq thein, such (WAA AW Operate to dclkm*,Cr affece this kale to so far it C rs a A r parts tit said lands uptin which the said
<br />11-s" or %in MIn n 10-VVP... ="I be relieved .4 ill Obligations wish
<br />I ther" shall Mau due PA)ment .1 air... Is caw letter assigns this lease. in whole Or
<br />Zaora 1" portiogi of ions arising isubsequerd to 4 date of assiannar"L To the event of death of any person entitled in irritals Ist-Teundi-r. 1(-ssc* may pay
<br />cl% tender, such assigned vol the deceased until such time As lessee is famished with proper c%idt•nor of the appnintrnent and quali-
<br />I te to the credit the deceased or die estate
<br />.d
<br />of an executor or administrator of the estate. or if there he none. then until lesser is rumi3hed with evidence satisfactory to it as to the Ist-irs or &%iuva of the
<br />dt•cra". It at any time two or More perums he entitled to Participate in the rental PAVAble hereunder, Lessee may pay or tender said ientsil Writy to soch persons or to
<br />thi-ir joint in the depository named herein. ne. of Lessee's election. the proportionate Part of said rentals to which racls participant is entitled May he paid or ten•
<br />dered to its wparalirly or to hill sa•parale credit is said desiository, and payment or tender is any Participant of his portion of the rentole herruncler shall maintain this
<br />leave as to such participanL
<br />11. tA-&WP may. at any time. and from time to timet czectte and deUvvr to Lessor or Place' Of steroid a release or releases covering either A full interest or an undivided
<br />interest is all or. Aviv part of the lea" Premises or is an) One or more tones, formations or depths underh-ins all or any Part of the lea" premiu-s and th,•rektpon than
<br />he relieved 14 as obligations theirei * is" embraced, in the
<br />A" to atcrof wi 1"Ped to the AM06 = formation% depths or undivided inlcw%ts covered by suck release. In the rvc..t of a re.
<br />base at this le ere to all rights its 4S pit It Jeasstd premisce, or as to an undivided interest is all formations In all or a part of the leased
<br />tea ael 4 of I -a" for shag Ile
<br />prendwi6 here tlW May ron"boy's 'Pro% ,reduced. proportionately.
<br />12. 'Alri drillinlL I prodisefino at other 00M60" also 4c latersup" no 5 by Inch of water, labor. material, inability to olitaiss access to lea" prernibm fire,
<br />, U,
<br />nottik'aar. Fir Ilion. iftlitkill A' riot. Aftilse differe I wollimm failure of Carriers to transport or furnish facilities for transportation of any pmdud produced hene-
<br />under. or 5,14�sactory mod" in tesswo oplalon, for the qf or goa produced, at he a result of an order of any governments! agency. (including but not
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