|
Cherry Creek Block
<br />N -1091
<br />.. [13ANSkS BtURPR1"TC0,ERG
<br />rRCCUCtRa as. ,,-,, O1L AND GAS LEASE"r`" ,•
<br />�wmtl,.k�7,'twn..e K.- -
<br />e0.640 , v
<br />'REV. 4-69 -
<br />y Made and entered into the ...._,.... 15th ..day of.... -- . - - -.1: @.11 -rte c.`�'- ,�------- ° ------- r].USb -slid - -al�d _ : ............. ..._ -e '..
<br />AGREEMENT:,_... Cl. ar- ellc.s---- D....,Stutzman.... and.._Ethel...La....S.tutzmE M- .__. - - -.- _ ... _wife'.: _�_._7_._T _
<br />h and
<br />- ------- ...... :.'.. : :.. :_: _.Iaond.. l3i.ver.,,.- .Ne.l�r asks... - - - - -- ........ - --- - -- -------------- - -- -- » - -•_ -• - ............ -- - -
<br />nse mailing address - - ioronafter•called'
<br />Lessor (whether one or more), and .......... _ ..........
<br />Ll a Yc __
<br />----- °.._ .. - _ u
<br />C
<br />....._......._...- ........_ -, hereinafter ali_seet
<br />1. y1'1TNESSETHs That the said lessor, for and in consideration of._.,._E3 ... :;- _•,- .,.. -s., ,r... -- _....- T.�eaDghfrs.
<br />cash', in hand paid, the receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on par) of lessee to, pa!dt kept, id•pedprLmed,
<br />has granted, demisco, leased and let and by these presents does grant, demise. lease and let unto the said lessee for the sole and only purposii of 'exploring by geophysics)
<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 tbertim to produce, save and take
<br />ear or' slat redtic', Nor.th_.. - art 5'�' - 1�.,.i�� h ofNRbrRlka ., ..
<br />-_.- ��....xo_ sera _R.R•� lei _ 1�NQ�t. ..... -R� ..R.� : .............'..... .
<br />State . of ---__-- ..,._ »,...._- .a_,. -..•.
<br />ts - in tract of land situated in the County of . -- - - ••••-
<br />.......................
<br />as li
<br />dcser � all •.�.._
<br />.....s�ed, ollows, tP-w'ut :........ ».
<br />n that certain
<br />- -- '------ - - - - -- xc--. �...; ac- r- es-- 13�---- R�---- Nor_ih-- ��t. -..Qf
<br />_,___
<br />.. -
<br />. - .. : :- ......... � ------ - - - - -- - - -- ----- --._ -. - - - - -- - - - -- .._,..--- - - - - -- - -- - ------------ - - ----- . -...- »
<br />: �-
<br />of s QQ l$.1-
<br />action .------ .(,7•...- :-- ._.:r._. Township.-••- --- -]. �----...... Range...----_..12----- . -. - -. end containmg._._._._. _--.._ ..............__.,.. __ °_._.- _...- »_- ___,�_- ___ -.__. 5,,. -. acres, more oe Tess.
<br />ears from this date, and as long thereafter as out or gas u either them it p
<br />2,,jt is agreed that this lease shall remain in force fur a tet'm of-... .1,Q- Y enticed From
<br />sai$, land, fur from lands with which said land is pooled therewith, y lessee.
<br />3. In consideration of the premises the said lessee covenants and agrees:
<br />(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 lessees,optivn, may pay to the lessor for such one - eighth royalty, the market price for oil of like grade and gravity prevalingVon the d. sufts oil
<br />is run into the pipe line or into storage tanks. -
<br />(b) To RatY 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 trket pricF at, the well for the gas sold, used off the enemies, 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 />pooicd or unitized is at :iny tips, shut in and no gas therefrom is sold or used off of the above described lands, or an the manufacture of n(ttural` gasoline or other products,
<br />ncverthelcss such shun, -in g}s we'll shall, under all the p {ovisions of this lease, be deemed to be a'wel! on the above described lands producing gas in paying quanlitfes and this
<br />lease shall continue in force duringg all the time or times while such wed is so shut in, whether befor or after the expiration of the• prin0ary Tenn. Lessee shall use ,reasonabla
<br />diligence to market the gas.,capable NF being produced from any such shut -in gas well, but shall be under no obligating to market suob gas under terms,, conditions i circum-
<br />stances lwbich, in lessee,, judgment, exercised in good faith, are not for the best interests of both Lessor and )geese. -
<br />The term "stated d'ateai used in this paragraph ,hall mean any rental paying date of this lease or any subsequent anniversary thereof if there be' a rental paying dake,
<br />but if no,rental-pa)ing d:atei,is specified in this lease, then 'stated date" shall mean any anniversary date of this lease: If on i_ny such stated date there be on the above
<br />scribed lands or ,p lands wrth which the above described lands or portion thereof are pooled or unitized, one or more such Ras wells capable of roducing {l,,as only, and no.
<br />gas has liven sold or w used from any of such gas wells at, ally time during the twelve months period ending with such slaw d date, Lessee shall, before the expiration of
<br />sixty x(60) days after sut;h stated date, pay or tender to each owner of the right to receive royalty on the as 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 etch such owner in the d •pository bans) named herein, - in the map -
<br />ner pl- 6-ided herein for payii- of of delay rentals, a shut -in gas royalty for such period, which shut -in gas royalty, shall he ,drtermihed as follows. t
<br />The total mania. of, shut -ih gas royalty parable l0 ag such owners shall be detgyrrmn,ined by multiplying One Dollar (51.00) fig tJiq,total number of acres of land cove[gd
<br />Ill, 'sand lease on such etaSSed date, and each such usenet shall reee•ive that part thereof which is in the proportion that his royalty ap' age interest in'said la9d bears to the
<br />total nulnber of acres of land'eovvre•d by. such lease on such slated date; Provided. however, that if on such stated date this lease,$ firing maintained in Ioree and effec!
<br />thenvisf than by reason Vf any suchr shut -in gas well or shut -in gas wells, Lessee shall not be obliged to pay' or tender any site sups of money as shut -in gas' royalty.
<br />The language "a gas well cap, ile u producing gas only ", as used in this Section 3(c) shall mean and include a wets capahlet'.ceerpducinq itura) gas only or a well
<br />capable .uf producing natural gas, and /or condensate, or distillate, or a well classified as a gas well by any govemmental authorut ,any we in which the gas -oil ratio
<br />is so high that a go,vnonAlilal authority will not permit liquid hydrocarbons to be produced therefrom unh•ss the gas is marketed+ t y :
<br />4. if operations for the drilling pf a well for oil or Ras are not commenced or if there is no oil or gas being produced on sod livid or nn acreage pooled therewith as
<br />here•ill<fler piuvided on or before one yl•gr from the date hereof, this lease shall terminate as to both parties. unless the lessee on or before that date shall pay 'or tenter
<br />to the ld 3a k of Cairo -. _ Cairo ' 11dbtaska
<br />cssor or to the.lessw's credit in the ._.!5.ta -taQ. _.---_ n.-.....- -- -.. -... ... flank ut ...._ -- ......... ......__.- 1.._ -... -, .. : :---- °-- -- °--..._.-•----.... -•---=--. :._-- °--° .
<br />ur its L• cevs5or! 9, r
<br />w,lpch shad continue as the &•poskrry fur rental regardless of changes in the ownership of said land. the sum raf.._--.--_.-.:.......-:-___....-;_.......___.._.._--_-_::.-
<br />......:,... .� .- �,. ,y `..- k,_ .. - .....�- .DOLLARS
<br />.:..,:.... •. ortgr- ua and. - -' 251. 4Q..-- .............------- . :..._ :- ....---- .._........ -- - - - - - -- - :- •-------- ..._....-- - - - - -- --- : -.._. _.. --
<br />t
<br />$ ��j- g-� -... :. which shall - operate as ■ rental and cover the privilege of deferring the commencement of operat un7 fur drilling of a well for twelve
<br />nunths'ffom;,s:fid dale.•In_like igqnurser and upon like payments ur .enters the comnnrn(:enient of ,pe•rations for drilling of a well mp ,be further inferred fire like periods
<br />of the .same - number of months 6ucc•ssivvly. all payments or tenders may be made by chuck or draft of lessee or any assignee there mailed or delivered on or before the
<br />rental pa> injt, date. It is undgrstnod and :,greed that the consideration first recited herein, the down pa •meat, covers not only the privilege granted to the date when said
<br />fief rental is p :lyable'as afurvs:uid, but also the less. s right of extending that period as aforesaid, and any and all other rights conferred. Should the depository bank
<br />hcrralb'} dose without a succcssuq lessee ur its assns may deposit rentals or royalties in any National bank located is the same county with the first named bank, due
<br />notype such delwsit to be mailed to lessor at last krow•n address. ,- . - V .
<br />5. \tits respect to the pa >mrnt of and the right to receivo delay rentals and royalties (including shut -i0 gas royalties); it is agreed that the lern,inaliob oft life estate,
<br />le(ref mineral interest or utlier precrdvnt estate w'hrreby the Lessor shall come into possession or use an interest jn said land shall, sufiject to all 'the provisions of this
<br />leaase, bramae effective frmn and after the date w}x•n such Lessor shall hate famished satisfactory evidence to Lessee showing the termination of such life estate, term
<br />niincral interest ur otfirr precdent estate, but fur all other puinpsM thus lease shall cover such interest as and when the Lessor shall so come into the possession or use of it.
<br />8, Iw•ssee, at itsoptiun; is hereby glean the right and power to pool or combine the I:md covered 1>y this )case, or any portion thereof, or Igrmntiona thereunder, as to oil
<br />and gn +, err either of them, either before ur uftrr production, with any other land, lean ur erases when in Lessees judgment it is necessary or advisable to do so in order to
<br />pro ;x•rly, d -%clop or' operate said premists, and irrespective of whither authority similar to this exists with respect to such other land, lease or leases, such pooling to be into
<br />A wvll•unit or units not exceeding forty 140) acres, plus an acreage tolerance of ten per mat (lp°,E) of forty (40) acres, for oil, and not exceeding slat hundred and forty
<br />640) 'acres, plus an acreage tolerance of ten per cent _ (10%) of six hundred and forty ( 640) acres, for gas, except that larger units may be created to conform to any
<br />'Paving ,or' well unit pattern that tray be prescribed by govemmental authorities having jurisdiction. The pooling in one or more instances shed not exhaust the rights of
<br />the Lessee hereunder to pool this lease ,or portions thereof, or formations thereunder. into other units. Lessee shall execute in writing and place of record an instrument
<br />or in +truments identifying and describing the pooled 'acreage. Production, drilling nr reworking operations anywhere on a unit which includes all or a Part of this lease shad
<br />be treated as if f were production, drilling or reworking operations under this lease. In lieu of the royalties (excepting, shut -in gat royalties) elsewhere herein specified,
<br />f,vsxur shall receive from a unit so formed -only such portion of the royalty stipulated herein as the amount of h4 acreage placed in the unit or his royalty, interest therein
<br />Ix•ars,
<br />to the lotid : acreage so panted in the particular unit' involved. In the absence of production Lessee may terminate any unitized area by filing of record notice of
<br />ternAatigM unVA the instrument• or instruments identifying and describing the unitized area contain provisions for termination upon certain contingencies.
<br />t '
<br />gr)S'n`` f$ ai ta(��eryry of, 'oft or gas on said land, o r oiR acreage pooled therewith. lessee should dull a dry hole or hot hereorsy tyr if after discovery of oil or gas produe-
<br />tion thaale;lftv,+hml7cKs-� se fur any cause. this lease shall not terminate if lessee commences additional or rewor�ing upemtinns within sixty (80) days thereafter,
<br />or (jf it,bgg iilhdla',tlist tiflnaAra• term) ca...... s or resumes the payment or tendei of renblf on at befrire the iental- paying date , -next ensuing after the expiration of three
<br />(S t rttpo0nl, (nom thl�c ^tit : -t F ginnpletion rf a dry -hole M ttSSatinn of production. I nit the expiration �f the primary term oil or gas is not being produced on said land, or
<br />7icry.tFe prinh�c�{, jh,y� ttii(ji/ hjt less.•' is titan engaged in drilling or rewor�inq operations thereon. this leas_! sbad remain 'in West so long as operations are prosecuted.
<br />�•it�•r'un itliaystrh1? r d it anv :other well thereafter commenced, with no cessation of more than sixty (80) ,consecutive days, And if they result in the production of oil
<br />4 gjas. td1st If•:g.lt t,lillf rr`i,i.lirt iri effect so long thereafter :u such production continuer+. •, S - `+ ` ' ` '
<br />R. If sand 1y•ssgqr { 1,-A fnlCrest in the Above - descnbed land than the entire and undivided fee simple estate therein.. iien the royaltie+, and rentals herein provided shalt
<br />be Phil" thR )It,•Ihu ,SIy in, dropjtrtion which his 'interest bears to the whole and undivided fee. Any interest in the production from the lands herein described to which the
<br />fnlerept f lessor maysl%syh�ejgct shall be deducted from the royalty herein reserved. ,
<br />9. T •sir .lea. 1,faal� [�? gh t{o use, free of cost, gas, od and water produced on said land for lessees operation thereon, except .water from the wells of lessor.
<br />\t•heg- reftltsyg(1 byrl�a or0. essee shall bury lessee's pipe lines below plow depth ;,_,,•
<br />Vq,vbefi ,ail d dnll"t�.* nearer than 200 feet to the house.or barn now on, said premises. witltout,wfigru .orient "of lesyory.'. 4y d j,^ :
<br />LesseS, shall oil Jot t_tama4ts caused by lessees operations to growing crops on said land: ,
<br />Lcsse shall lisps the right at a6y time to remove all machinery and fixtures placed on said pI Ises,vindudinj the right to draiggand remove casing.
<br />]0. [f ilia estate of either party hereto is assigned -and the privilege of "a;signii,q in whole or in part is expres ll) allowed -the covenants hers -of shell a fend to their heirs,
<br />executors, administrators; 'successors or assigns, but no change in the ownership of the land, or assignments td rental or royalties shall i e binding iii the lessee until after
<br />the lessee hap been' Filrgished with certified copies of muniments of title deraigning title from lessor; and it is hsrefiy agreed-that in the event this lease shall fie assigned
<br />.is to a part or as to arts of the above described lands and the assignee, or assignees of such pa or parts. sAid fail rx make delnuit in the pay,drtM of the proportionate
<br />part of the rents date frmn him or them, such default shad not operate to defeat or affect this leas' in so far :u it covers a art or parts of said lands upon which the said
<br />lessee'cir any assignee thereof shall make due payrncnt of said rental: In case lessee assigns this lease, in whole of in part, lessee shall be relieved of all obligations with
<br />respect to lee assigned portion or portions arising subsequent, to the lain of assignment, In the event of death of any person entitled to rentals hereunder, lessee may p av
<br />,r tender such rentals to that credit td till dett•ased or, the estate of the deceased' until such time as lessee is furnished'; with propel evideoex: td the anpoigtmrnt and t ugli-
<br />fication of Imvxccutor,if administrator of the estate, or if there be none, then until' lessee is furnisfied with evidence satisfactory to it as to the heirs oT th•visets td the
<br />deceased. If itt anytime two or more personi be entitled to participate in the rental paygfile hereunder, Ia•ssG,a may, pay or, tender raid Jrnt:d jollity to site lx•rsnu 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 .e pni� or ten-
<br />dered to him separatclO air to his separate credit in said depository; and pnymt•ni or lender to ant, participant of his portion, of the rentals hereunder shall maintain this
<br />lease as to such participant. I e • :'' �'. ,' -
<br />11. LCSS&' may,' at' into bole and from time to time, execute and deliver to Lessor or place of record a release ' releases covering either a full it Wrest oi` an undivided
<br />interest �n all or a6v part of the leased premiss or in• any' one or more zones, formations or depths . underlying all or any part of the leased promises a {Id thereupon shall
<br />be re•licted (if all obligations thereafter to accrue with respect tq.the µr {{•n, zones, form,;tiop% depths, or, undlvi�Teit interests, covered by such release, In the event of a re-
<br />lease of this lease as to all rights in only a part of the arei embraced is the leased premises, or as to ail undivided interest in all formations in all or a part of the leased
<br />Premises, then•arter. the delay rends hereinabov'e provided for shall be reduced proportionately..
<br />12. When drilling, production or other operations are Belayed, interrupted or stopped by lack of water. labor, material, inability to obtain access to leased premises, fire,
<br />flood, war. rebellion, Pumurvob ri, riot, strike, differences with workmen, falure of carriers to transport. or,furnisly facilities for transpoftatloq pf• arty product produced here-
<br />under, lack of available or s..iis(ackrry market, in Lessee's opinion, for the oil or gas produced, err as a result,of an grder of stay governmental agehey, (including but not
<br />,4 ,i
<br />
|