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�. If <br />` ` Cherry Cree;i Bloolc <br />'cif <br />pP° ;pia :yR'1 011, AND! GAS LEASE° r~ <br />��/tt BIUEpRINTCO.itK� <br />pEV ? 44 jam. ' , y. a <br />IA015R��MPcb � anf eltterod lato the �. r _ _ day, d <br />by and it4tweap ; - Y �� B4` ftik'br, Wt Jp d ad.» POlers Trite ;emit baa0aad, <br />whuae <br />1Frel RAa»Callyd r ocaloq yt � <br />4 _ iscr W r^ One fir AsA s, r y esMt yaaAMn� a 4 <br />4klabooa <br />_ - - y hemriatlsr cane¢ Lessee <br />f K tmcssfT!(s '-tat t�ss sAa frlehsor' for and in eooraitderr¢ tan of Bi ty Rile.- and- 36AQ0.0 '• . -r • � - • � . � Dattart, <br />case In hand Raid& ilia receipt 4 w$acb is hereby ackrtowledgedr and of the toven)Snq and sgnement>} hcremaf)ct contained on part of lies" to 1; psual, kept and wf.m led, <br />has graratvda damssed, leased and lot atnd by these psrPersts does grant„ rlrmise, lease and let unto the said Icssee for the sobs qnd oply purpose of exploring by geophysical <br />and pthiet ntethirilsa minor; pnd operotrgg for 00 and gas, srid aaf Ivan$ of pipe lines# and of buls(snd took; power stations and structures thcreoa to prpdu save and take <br />care of said products# 411 that ecrtesa tract of land situated to County elf- Hail. » $tale of N456, 21 p <br />docrabpo ys foll" 0-wts ?&rt. yob'_ tAoP 3. `l 94 $.Ogt,r.�Oh,.19 .�;ii South of the dailroad A. 0.1r. . <br />I iond 4 of Z*Ott*A 13 Oxcapu that- pry_ Q_t Vhf MEt tiro.& Nerth'and__ EaaV of <br />th4 $ *ilro*, RtO *Wl' )[E4- at- 3eotlon...23f... $Il- UL ` OWA*ehip. 12, �I(orth, Rams lip tKas of <br />t�h't 6iix� 8.M«- �J_, >�aita lie3zratks �t_ _ _ - T R <br />t� -. R �_ <br />All $ecp0a . » n »p Township r 13 a- Range � _ .and rnlrlemmq ? [ � a Siff ! � r - _ T ores, -r <br />Moro or less <br />S. It yl agreed that tbyt leas* shall remain irk fora for a term of _ v yea4 frotq this dates and as long thereafter or 04 of gas or either of them u produced from <br />said lands to frvay lan4 with wluc)t ssad land it pooled therewith, by lessee. <br />� e y <br />3 �l costardaratsim of the premises the said lessee cov$nsnts and agrees r r <br />(a) To demo; to the credit of Icks0e, free of cpst rn the pips lute to which lessee shay conned his NeIlil. debt equal one- ,ghtll part of sU of produced and saved from the <br />lea premtpts w at tltp lessees upttgn. may pay to that lessor fee such cons- eryhth ro)oftr. Qli market pn fur rag of ls7a grade and gravity Paco ailing on the day such 00 <br />W run into the pipe lime Qr into storage tamksc 4 4 s <br />e { S1 To pay lessor for gas of whptsacver nature or Wnd pralgced and sold or used off the pmrnues or used all the manufacture of any producq therefrom, one rrghtllr <br />at tb} maurkrt pnc�e Rt lthl+ Well Ew rho loos solid. used off the premru s, or In too monu[acturq of products, therefrom, <br />icy )f a gas rpill ennoble of pr icing qes only and lo(akd on the shove described 74o4P or on lands with which the above desclrbed lands or a portion thereof see <br />pooled w unspzad is, at any time shut Mt and no Ft}s therefrom u sold or used tiff t# the above described Ignds, or in the manufacture of natural gasoline or other products <br />nt.}rtbtlCSf such shut ip gas well shall, µndtr al! the prows ors a>E this lease bps deemed to he a well on the above described lands producing gar an paying quantities and this <br />ba ax ;hill cunun_pe in force Bunn` all thg Ume w Nm wlji y such well is so shut whctht7 before ax orrice the expiration of Op primary term lessee shaft use raasuga¢Is <br />diigsence tq m tr the Kit capable oil being produced Trom any suck shyt in Ras eel but shall be under no oblryay ifi to market suck gas under terms conditions or crrc;tmr <br />stances whack, iq I.cssee 1md ;sneny rat.telsrd In ttVod fulh, air not far the hest Mterefts v( loth l,Iesspr and t,;.sses 4 <br />Thu ufm stated data' as used m this paragraphs atoll mean anY rental paymd date gf thts lease or any subsequent anniversary Hereof uF there be a rental paying date, <br />but d no rill a) pays a date is sptrrfird m thll is se, thco ststed date° sh4U mcyo any anniversary date of this lease If on any such stated date there be on ;be above Qs <br />scri)i'd lan(1s or as, lands with which oboe abase t;cr A: lardy pr rugn er are peeled or unru;ed, one or more such Las Wjns capable of 'Diluting Ras only and no <br />Ras has heco sold or sq ystd [rem any pf $ uch gas we (II At any hrrte� using the twelve months penod ending with such stated date Lesive shall before the ecpuatsun of <br />arty t601 days after sister; staled date, pay ar tender to each owner of the right to receive Any,tlty on the sits produced from tiny purl: of the above dcscnbt,,lands covered <br />by that Itase pn such stilted dote at each such awuw address as last known to lessee or to the credit PE ach such owner in the ��e.positu'y hank named herein in the man <br />ner prpvaded hareia! tar p+tyraw"I d delay rentals a shut in gas royalty for suck period, whack shut in ga�royolty shall be dettrrnf it as fonow$ <br />ilia "tutor umaurd r� shut m gut ra>nity pay�bls to au such owners shall bs detarmrncd by m4lhplyrng (hie pmUar (i! 00) byre the total number of acres# of Tand covored <br />by a:�d l a e oa arch stated dote and root such owner shall ricers, that part thtre�f whack u m too propurRua that his myaity Auenge mtuest m said land bears to the <br />trot umperaE ogee of 1Jnd covered b such lease op such atutad dales Provided, however, t¢at ([ an such stated date this terse s being maiulainrd in forte and effect <br />rthatw th air by n roan ad an seer shut in Fos wee or shut is, oaf wells. l.easca sh1U qof 1N ubhsrd to pay ar tender any vnclt sum of Montq as shut m Ras royalty <br />Jiro T�1 nqu�ge a gss well caplbls art producinK g+N only at us}d rn thsF Secdop 3 {c) shaft Moog and include a well capable pE producing natural Ras only or a well <br />capable cd pproducinx nit ;era) Ras and /cK cond;nsate ar distillate err a well classific as a gas well by any Rovtmmcntnt authority w any well in which Ilia gas oil ratio <br />is so high thAt n gmcrnmental atlthonty will rat pc/;riit liquid hydrocarbons to trs pradpced therefrom unless the R'u as mailc;ttd <br />4 lE npcnuaga fur the tlrillinK of o well tars# nit ar Flo are not rnmmtnerd or rf share rs no oU or Ras bernK produced oq sand land or on acreage pooled therewith as <br />banma 4s prprvidrd on ur heroes, one vase (rpm the dots hereof, (his case shall terminate iu to both partars, unless the lessee up w be[core that date shall pay or tender <br />to ;she lessor or to the Jtssurs creedit in the $tat�t_S,�ITLjC S11' _�airo Bank at »CaQirOs IPQbraska <br />u its successain Asbitb shall }ontinue as the d positary, for rental regardless of changes in the ownership of said land the sum ref- , <br />ay w .w .. • w • ♦ • • w r .. r r •� .� Jr <br />68n Hundrod Sixty, e@- and. 3t8 1QS�__ _ _ _ _ » DOLLIAM <br />g !_ R ) xhich shalt opernte r rental and cover the pnNl go of dcftrrinx the commencement of operations for drilling of a well for iwel <br />n nits from said d rte Ia like manner and upon like payments or tenders the camincactment of tips rations for drilling of a well may be further deferred for like ptn s <br />f the name number of months succtssivcly All pa)mtnts or tenders an" be made by chtck or draft of lasses, or any assignee thcretifr mailtd or delivered on or before the <br />r otal paying data It is undtistood and iveed that the crop ideratton first recited btrtin the down pa rntirt covers not only the privilege to the date when said <br />fast rental u payable as Aforesaid but Also the lessees nxl at extending that period as Aforesaid, and Any arld all other rights conferred Should the depository batik <br />Starter clo �vi)houF a ;uccrssor lessee ur sa assig,siy maY deposit rentsls or try aloes in any National bank located in the yarns county with the first named bank, due <br />race of pacts di posit Ateibe mantel to lessor ;k last known address. a <br />S 'A Atli resprGt <br />to- the payment of pnd the right to recclve delays rentals and royalties (including shut to gas ro)a)titis) it is reed that the termination of a late estate <br />0.nn Menem; I- terrsl or other precedent estate wherely the Lesser shall corns into possession or use of an irterest in said land shall subject to all the provisions of this <br />woe become effective from and after the date when such Lcssur shall have tum }shed ;atasfactory evadence to Lessee showmK tnae lerminagon d such lAe estate term <br />A s crA! nityrast or other precedent estate but for all other puropscs this )east' shalt cover such interest as and whirs the Lasses shall so come into the possession or use of it <br />(I Lessee 1'1 its apturs is hereby alvtn the right and power to pool or combine the land covered by this lease or any portion thereof or formations thereuradvr as to oil <br />„ d r pp} w either of them, either hafure or after^ production. wails any other land, least w it Ascot when in Lessees }udgmegt it u nectssary or advisable to do so in order to <br />pr peel da'tlop or operate said prtmists, and imapective of whether author siml it to this exists with respect to such other land lease or leases such pooling to be Into <br />a well unit or units not r%cerdmg forty (40) Acres# plus ad Acreage tolerance of ten per cent 110%) of forty (40) acres for on And not axcceding six hundred and forty <br />640) Acres, plus an AcreAFe tolerance of ten par cent (30%) of six bundred and forty (640) Acres for Ras except that larger units may be created to conform to Astor <br />I ocmx or wglh unit paths lb,t may be prescnlord by zovtmmental authorities having tun diction !'lie pooling in one or more instances shall not exhaust the rights of, <br />,he I,tssee hereunder to peal this lease or portions thereof or furrnahuns thertunder into other unity Lessee shall execute in writing and place of record An mstrunient <br />r anvtruments identifying And describing the paroled acreage Production, drilling or rtworkinR operitaans anywhere on a unit which includes all or a part of this ltase shill <br />I e to ited As if it were productions dr;IluA of raworucmK operations under this lease In lien of the myaltsra (excepunx shut m jtas royalties) elsewhere herein specifi -d <br />L 'air shall mine from a unit so formed only such portion of the royalty stipulated harem ss the amount of his acreage placed in the unit w his royalty inter st therein <br />I us to the fotul Acreagail sa pooled sn the particular unit n)o!Ned. Is, the absence of production Lessee mAy terminate any unitized area by filing of record notice of <br />I , nYwtwn pnle,'d the,inistrurnent or instruments identifying and dascnbmx tho unitized arcs contain provisloaos for termination upon eertam contingencies <br />7 IE prior to tlitspavary of oq of gas on SArd land car on Acmige pooled therewith' lessee should dell a dry hgle or holey thereon. or if after discovery of off or gas produe <br />son /bon.t(trr sllny)ai t,>ruu f� any cause this lease shall not terminate it lessee commences additional drilling or.rtwurTgn% operations within sixty (60) days thereafter <br />r (t7 d 1 wttlair the pgntAryrterm) Commences or nsumes the paymcot w tender of rrgtal on err before the rental pa)inK ste next ensuing aficr the expiration of three <br />t 3) Mont !road the d ate of co pletagq of a dry bole err ecssatnn of production If at the expiration ref the primisry term all or gas as not being produced an said land car <br />n AcresFe T tier sstit first lessee to thin enrigtd in drilling or reworkinfl operations thereon this lease shall remain in Afford so long as Dpsrations are prosecuted <br />it Mr inn rhr a ye '.4N brain utTwv well there}Aftcr enmmenct(4 with no aessution of more than sixty (60) consecutne days and If they result on the pnducuon of oil <br />r gts ilia; 140"T. ieriosl+b n tffrR so long tssrrcaftar as such productive continues o <br />tr If 'Mind 1'siswiair a )Njoa(kr'st in the above Ila scribed land than the engrt and undivided fee simple tstate therein then the ro)altatx and rentals harem provided shill <br />Is, road t��rrl ;ssarr rarr��aa{°�g an Enpgrtfna which his interest hears to the whole and undjt,drd fee Any igttrest in the production from the lands htitn dtscnlrrd to which the <br />n It n�st`dfrlj aEW(. mnf� Trjp us j fTa� Tie deducted EroiA rise royalty )error rest n silo <br />o Losses aN ii tfg tvg� pie free of cost, gas, oil and water prodpced on said Igiad for lessees operation thereon except water fmm the wells of lessor <br />RTicn re' rs nY last esee shag bury lessee s pipe lines befgvi plow depth. <br />NO wilt s rllaf nearest thAag 200 fret to the house or barn note on said premises without written consent of lessor <br />1A is p if 41amAges cauxal by lessee nperapdns to growmd rr'Ds on said land, a <br />Lesser shall base the right at any time to Iemovs all machinery and fixtures placed on aged premises including the r ght to draw and remove casmi. <br />10 It the estate of crtlu1 'Party hereto x q asnGnrd -and the privdraa of asnsmng in who!( or an port a axprt eels# elbowed -the covrnann herrad shall aria rid to thee h (us <br />es cuts rt. AdmnlstriAko , succtssairs or assiRra4, hut, no change in the ownership (if the lan�irr assijvamtuts of rental or m)altias shall be binding on the less -C unliq aftar <br />the leswo )W )serrt„iurrpslttd w lk a�rtdud COL <br />of munnients of title deran,nnK title ffram ill, And it Is htmhy agreed tht in the " tit that; 1, ass halt tar ass,wud <br />is to a part r;r at to ppart] ui t ahaYe clescnlsrel 1 rids and the assignee or assignees such port or parts steal) Earl or make drtnult as the Da> m' i t of star pr pautionatr <br />art of the rents doss fmtgl1j as, or them, rh default shall not raperp to to defeat a t affect this lease in so for M t covtrs t qrt air j�arts of siul IAOds up, n which the sAkd <br />""t w any' assiFnati there aof shall matte due Payment of said g,�e'o a+ In ass lessee! aspis,rss Ihd leash so whole or an part lesser shall he rebeved 4 ill obligations wish <br />A pad )a t asragMd parrtinn ar peirttons ansnK suh¢egt;ent to the dat6 of assminsrntr A the rycryt elf death of any person entitled to Sri t ds hi rrund( r it arse may pay <br />r tinder such nntils )o the credit of the deceased or the estate of the deceased until such time as Ihssee it tarnished with proper tudcuce of the anp,nplmtnt and qquali <br />Fu Ilion of An rr(rcut0t or udnunulratcxf of the rstAtr Of of this NO he none then tint¢ Aisee to furnished with evrdcnce satisfiflory to it as to the hens or & axes it the <br />d -jastd If it Any Issue two Aw more persons ie tontlyd to participAte so the rental palabie hUcnndcy Lessee nay pry at tend,► s-ad until Pu ty to such persons car its <br />thtor joint credit in d positary asamrd Iwren; or ad Lessees election rho proportionate, part of sAid Itntgls to which eAch participant s trrtat,4 Ty he pi. it or stn <br />el r d to ;lire Wparat� air to has separate credit rn Amid dtpositorys and payment or tender to any participant of his portion of the rentals htrtundu shall mAmtAin this <br />la Ave As to such pamcipant' a a I <br />11 lwsu,4 may At any tilare And from limo to t ;met execrate and deliver to Lesser or plat* of record n release or relvixes covering ember it fall intatest or An unch ad d <br />iota At it in All or any part oaf thye leased prymrsrs tM re any ore w more zones formanonf or drpihlt unduly nR all w any part eof rhr lrau-6 prcma t and th ten m sh dt <br />Ian rrhavre {t�( elf aldrgyGnns tfsrreafter to itc4ru{ wrt1� nsptyet to the area zones formations depths or unaltvided ntutsts covered by such refa;ase To the e'eut of a re <br />i ass (if this leAass�� As tq all ng];tf jp Doty }s part d the area embraced Io the leased wemssas, or ss to an undivided ilstcrest }n an formations in nU or a part uF the lcaArd <br />pri Tiwy, them itty ti1R delatyr IcQtgit hereinai>ave pSpvidrd fog silo¢ he reduces( prnportsonotely, a <br />It tjjhtit drdimita pr(rdudron ar utlielr npersAo 0 ore delayed, alIttrnipted or strappto by la4k of water Tabor matanot, inability to obtain access to leoud jitrmisax fire <br />introit!, w t► mlre11Io'�s,, fnstiara7,11 n nM, stn . ddffgrenvg, with WarkmerT fAlRr1 of carriesAt to transport or fumssh facildaas for transportation of Any iraduct mraxlu4xd 1Krr <br />uaa;lr, lair of a%attah)e WX att;faclrsryemark�% Ili. Losite# opuuonj for the off or gas produced, of as e resin; of an order of any so%cmmrntal ag ncy {including but not <br />r ,r <br />t A r4 f� <br />C a t -- t <br />') ;P 4 Atilp r a <br />_ <br />Sw t7tc Lit 4 d "� tT a•`f�A a <br />