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Cherry Creek Block
<br />PRODUCERS 88
<br />40-640
<br />REV. 3•59
<br />OIL AND GAS LEASE
<br />N-1110 /
<br />MMSAS IkUt PFILMYCOINC.
<br />lc-!
<br />AGREEMENT Made and entered into the- ........ 15t. h ........... day of February y ........... ..... .. . ..... ... .. .......... 19. 6.2 .....
<br />....... .. ... ................... . ... ..
<br />by and between.........._ �Ara..Elizabetht Joh widow
<br />-------- .......... ... .......... PAPA'. ..4
<br />212 South Kimball, Gran-a I-S-Iiii&J, --- Wbfiska ...... .......... . ....... ... * -------- ---- ------- - * ....... ..
<br />----- ...... .. � ... ... .... . I ... ............. --------------- --------------------- .... - ... ... I .. ...... ........ . ......... .... . I—- ... .. .. ... ....... ... ............ - ------ .......... . ...... .......................
<br />,hose mailing address is - .... .... ...... ......... .......... ............... _ .. .......................... . __ .................. __ ......... . .. ........ . ... ....... ...... ... . ............ ........ hereinafter called
<br />Lessor (whether one or more), and. ---...---_....._-_........ Fr ed Mc Conne 11
<br />.... .. . ........... ............... .. ... ........ ....... ... ...... .......... .... ..... . ............ .. ------ --- - - -------- -------- -- --------_------- - -------
<br />Tulsa, Oklahoma
<br />---------- - ------- .................................. � . . ............... . ... . ...... hereinafter called Lessee:
<br />- - - - - - - - - - - - - -
<br />-------------- - a ----- ----- [100 -- --- ---- ------- ----- -- --- ---- ----- * --- -- -- --- ----- -
<br />1. NVITNESSETH; That the said lessor, for and in consideration of Forty an no
<br />.......... .......... .............. .............. .. ............. . .... _ ............ . -------- 1 ............ __ ........... Dollars,
<br />cash in hand paid, the receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on part of lessee to be paid, kept and performed,
<br />has granted, demised, 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 other methods, mining and operating for oil and gas, and of laying of pipe lines, and of building tanks, power stations and structures lace, V_ye and take
<br />tu'c' tiercon UrGraska
<br />care of said products, all that certain tract of land sthiated in the C ty f Hall State uf__ ----------- ....... ..... ................ .
<br />described as follows, to-wit:_ ----------- 5W/4 NE/4. SEI'm 0
<br />4 N i/i ---------- d ----- - 1i ---- ------- -- -------- . ..... ..
<br />....... --------- A --_------------_--j-------- - ��p_ o
<br />............ .................... ........... __ -------------------- -------- ------------------ - ----
<br />....... . . ........... ... I .... ---- - -_----------------------- ------------- - --_--------- - ........................ - --------------------------------------- - ---- --------- ----- - -_------- ------ - ----------- I ------------------ ------
<br />Of Section- .......... To%mbip... ..... 1.2 12 400
<br />--- ...... Range --------- - --- 0 ._ and containing _ ........... ................. ------------------------------------ -----------_------ acres, more or less.
<br />2. It is agreed that this lease shall remain in force for a term of.- -------------- ..years from this date, and as long thereafter as oil of 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 coillideratiun of the premises the said lessee covenants and agrees: ( 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 />leased premises, or at the lessee's option, may pay to the lessor fur such one-eighth royalty, the market price fur oil of like grade and gravity prevailing on the day such oil
<br />is run into the pipe line or into storage tanks.
<br />(b) To pity lessor fur 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 />at the market 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 />pooled or unitized is, at 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 />nc%erthvlcss 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 />lease shall continue in force during all the time or times while such well is so shut in, whether before or after the expiration of the primary tem. 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, in Lessee's judgment, exercised in good faith, are nut fur the best interests of both Lessor and Lessee. %,
<br />The term "stated date" as used in this paragraph shall mean any rental paying date of this lease or any subsequent anniversary thereof if there be a rental pitying date,
<br />but if no rental paying date is iii-ified 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 />scribed lands or tin lands with which the above described lands or portion thereof are pooled or unitized, one or more such gas wells capable of producing gas only, and no
<br />gas his been sold or so used from any of such gas wells at any time during the twelve months period ending with such stated date Lessee shall, before the expiration of
<br />sixty (60) days after such 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 />by this lease on such stated date at each such owner's address as last known to Lessee. or to the credit of each such owner in the depository batik named herein, in the man-
<br />ner provided herein 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 aninuirt of shut-in gas royalty payable to all such owners shall be determined by multiplying One Dollar ($1.00) ' b the total number of acres of land covered
<br />by card leave on 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 number of acres of land co-red by such lease on such stated date; Provided, however, that if on such stated date this lease is being maintained in force and effect
<br />Otherwise than by reason of ariv such shut-in gas well or shut-in gas wells, Ussee shall not he obliged to pay or tender any such sum of money as shut-in gas royalty.
<br />The language "a gas well capable 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 />capable 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 gas-oil ratio
<br />is so high that a governmental authority will not permit liquid hydrocarbons to be produced therefrom unless the gas is marketed.
<br />4. If operations for the drilling of a well 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 />hereinafter provided on or before one year from the date licietA, this lease shall terminate as to both parties, unless the lessee on or before that date shall pay or tender
<br />. I
<br />to the lessor or to the lessor's credit in the - - -F National Grand Island, Nebraska
<br />---- ------ - - - -------- --- --- - .. ... ........ ........ ...... ..... ... Bank at ....... ................. ....... - .... ................. ------------- - ------ --- -
<br />or its successors, which shall continue as the A-positury for rental regardless of changes in the ownership of said land, the sum Of..- .._._4----- ----- - ---- ----
<br />One Hundred ana_no/100 - - - - - - - - - - - - - - - - - - - - f - - - - -.;;;
<br />........ ....... . .. ......... . I - ............. ........ I— ........... .... I I ....... ............. ....... ..... .... I ------- .... ........ ....... ............ __ - - -------- ------ DOLLARS
<br />t S . - . ) which shall operate as a rental and cover the privilege of deferring the commencement of operations for drilling of a well for t%ehe
<br />moths from said date. In like manner and upon like payments or tenden the commencement of operations for drilling of a well may be further deferred for like periods
<br />payments (he same number of months successively. All paents or tenders may be made by check or draft of lessee or any assignee thereof, mailed or delivered on or before the
<br />ir•nt:4 paying date. It is understood and agreed that the consideration first recited herein, the down payment, covers nut only the privilege granted to the date when said
<br />first rental is pjkyahle as aforesaid, but also the lessee's right of extending that period as aforesaid, and any and all other rights conferred. Should the depository bank
<br />hereafter close without a successor, lessee or its assigns may deposit rentals or royalties in any National batik located in the same county with the first named bank, due
<br />notice of such deposit to be mailed to lessor at last known address.
<br />5. With re%p•ct 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 life estate,
<br />term nun•ral ititt-reit 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 />leiv,e, become effectne from and after the date when such Lessor shall have famished satisfactory evidence to Lessee showing the termination of such life estate, term
<br />mineral 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 />6. Leaser, at its optio., is hereby given the right and power to print or combine the land covered by this lease, or any portion thereof, or formations thereunder, as to oil
<br />and gas, or either of them, either before 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 />properly develop err operate said p-i-ses, and irrespective of whether authority similar to this exists with respect to such other land, lease or ]cases, such pooling to be into
<br />a 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 forty
<br />( 640) acres. Pitts an acreage tole-rice of ten per cent ( 10%) of six hundred and forty (640) acres, for gas, except that larger units may be created to conform to ruiv
<br />%pacirrc or well unit pattern that may be prescribed by governmental authorities ha%insl juri%diction. The pooling in one or more instances shall not exhaust the right. of
<br />the Less,-,- hereunder
<br />,!a pod r ol this lease portions thereof, Or formations thereunder, into other units. Lessee shall execute in writing and place of record an instrument
<br />or i-frunicuts id-iti , nin and describing the printed acreage. Production, drilling Or reworking operations anywhere on a unit which includes all or a part of this lease shall
<br />he treated as if it were production, drilling or reworking operations under this (case. In lieu (f the royalties (excepting shut-in gas royalties) elsewhere herein specified,
<br />Lessor shall rl-ek-ive, from a unit so foroted only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein
<br />beam in the jot4l acrt•Are so printed in the particular unit involved. In the absence of production Lessee may terminate any unitized area try filing of record notice of
<br />terninta4on ulddsij , fhe in,4runk-jit or instruments identifying and describing the unitized area contain provisions for termination upon certain contingencies.
<br />V
<br />7. If AV, 'i -.4 ea'cvj or gas on id I d. 01 1 on acreage pooled therewith, lessee should drill a dry hole or holes thereon, or if after discovery of oil or gas produc-
<br />tiot 1,,r any cause, thia-rease %hA not torminate if lessee commences additional drilling or reworking operation% within sixty (60) days thereafter,
<br />within "K , i(• At be n Iliq P LX,:,ry term) commences or resumes the payment or tender of rental on or before the rental-paying date next ensuing after the expiration of three
<br />1 y1 A Oyhohs fuln' the• daft -if completion (if a dry hole (it cessation of product(on. If at the expiration of the primary term oil or gas I not being produced on said land. or
<br />oxo 3c)x.VZ(l Poo otl� but lesser is then engaged in drilling or reworking operations therean, this lease shall remain in effect long as operations are prosecuted.
<br />irlGil fn the %anie iiell * irry Other well thereafter comirienced, with no cessation of more than sixty 00) consecutive days, and if they result in the production Of oil
<br />Or das. [Ais. lease sNuil 'A iv,�Pr in effect so long thereafter as such production continues.
<br />SA(�Wvsor '"s Ai j` jn1crest in the allme-described land than the entire and undivided fee simple estate therein. then the royalties and rentals herein provided shall
<br />ow id t e lessor n I m,projortion which his interest hears to the whole and undivided fee. Any interest in the production front the lands herein described to which the
<br />illterv�t 14 17;jq subject shall he deducted from the royalty herein resorted.
<br />g. 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 />WUt-n( r/q4c,je,fllly lessor, lessee shall bury lessee's pipe lines below plow depth.
<br />No well, %hall t'� drilled orator than 200 feet to the house or barn now on said premises without written consent of lessor.
<br />Lesser shjli'pay for damages caused by lessee's operations to growing crops on said land.
<br />Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the Tight to draw and remove casing.
<br />10. If the estate of either party hereto is assigned -and the privilege of assigning in whole or in part is expressly allowed-the covenants hereof shall extend to their heir"
<br />executors, admini%trators, successors or assigns, but no change in the ownership of the land, or assignments Of rental or royalties shall be binding on the le,sve until after
<br />the lessee has been furnished with certified copies of muniments of title deraigning title from lessor; and it is hereby agreed that in the e%•nt this lease shall be assigned
<br />as to a part or as to parts of the above described lands and the assignee or assignee of such part or parts shall fail or make default in the payment of the proportionate
<br />Fart of the rents due from him or them, such default shall not operate to defeat or affect this lease in so far am it covers apart or parts of said lands upon which the said
<br />essee r any thereof shall make due pa)m,llt of said rental. In cast less" assigns this lease, in whole or in part, Itsser shall be relieved of all obligations with
<br />re,poel to t assigned portion or portions arisina subsequent to the date of assignment. In the event of death of any person entitled to rentals hereunder, lessee may pay
<br />,it tender such rentals to the credit Of the deceased or the estate (of the deceased until such time as lessee is furnished with proper evidence Of the appointment and quali-
<br />fication of an executor or administrator of the estate, or if there be none, then until lessee is furnished with evidence satisfactory to it as to the heirs or devisees of the
<br />decreased. If it any time two or more p•r%ons be entitled to participate in the rental p-able hereunder, Lessee may pay or tender said rental jointy to such persons or to
<br />their joint credit in the depository named herein; Or, at Lessee's election, the proportionate part of said rentals to which each participant is entitled may he paid or tvn-
<br />dt-Trd to him separately or to his separate credit in said depository; and payment or tender to any participant of his portion of the rentals hereunder shall maintain this
<br />lease as to such participant.
<br />11. Lesser- may, at any time, and from time to time, execute and deliver to Lessor or place Of record a release or releases entering either a full interest or an undivided
<br />interest in all Or any part of the leased premises or in any one or more zones, formations or depths underlying all or any part of the leased premises and thereupon shall
<br />be r,-Ii,-%,d if all obligations thereafter to accrue with respect to tlw itlea, zones, formations, depths or undivided interests covered by such release. In the event of a re-
<br />lease of this lease its to all rights in only a part of the area embraced in the leased premises, to an undivided interest in all formations in all or a part of the leased
<br />premises, thereafter the delay rentals hereinabove provided for shall he reduced proportionately,
<br />12. 12. When drilling, production or other ark-rations are dela)ed, interrupted or stopped by lack of water, labor, material, inability to obtain access to leased premises, fire.
<br />flood, Uar, rebellion, insuirecti, n, riot, strike, differences with workmen, failure of carriers to transport or furnish facilities for transportation of any product produced here-
<br />under, lack (if available or s.akfaclory 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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