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<br />Cherry Creek Block N-1101
<br />91AA103 BLUS PAIMT r.1j IM
<br />PRODUCERS 68
<br />40 640 OIL AND GAS LEASE
<br />REV 3.59
<br />is February
<br />62
<br />AGREEMENT Made and entered into the Of
<br />"IA .-E..
<br />lie
<br />g--.a, Tty mas--Husband and wife
<br />Robert F . and 0
<br />by and between -- ----
<br />Cairo, Nebraska
<br />whose mailing address is
<br />Fr-ed -McConnell
<br />jr-Iter —Il'-d
<br />Lr (whether one or more) it
<br />All
<br />Tulsa Oklahoma
<br />Oklahoma
<br />I
<br />Twent y-tour and no/100 - -
<br />I ........... Ife"all'-d Less'.-
<br />- - - - - - - -
<br />1, WITNLSSETH: nott the said lessor, for and in consideration of .
<br />cash in limid paid, the receipt of which is hereby acknowledged, and of the 6ovI-mireB and agreements hereinafter contained
<br />em part of I to be paid, k,-I,t And per-f-ured,
<br />has giAnt,d, dvini-il, leased and let And by these presents does gpt, demise, lease and let unto the said lessee for the soft-
<br />met Duly Purpu.r d exploring by g phy'i"d
<br />.end other nrcthod,, mining and operating for oil and gas, and of laying of pipe lines, ag ollIfilding tanks, power stations and stnictures th,reo ') educe, save and take
<br />vegraska
<br />a
<br />cane of sand products, all that certain f land sled in the ounty of
<br />99T
<br />State of
<br />2..
<br />Secsi !b 1 -12
<br />d,s,,,I),,l is folh—, to—it: S8 IL - - Section - ---- --- -------- -
<br />20 12-12
<br />-- -------- -----
<br />-------- --- -- ----- - ----------
<br />of Section Township . ...... -- -------------- Range - ---------- - ----- ---- . and containing 240 . ..... acres, more or less.
<br />Z. it I, that this lease hall remain in force fear a term of .... 1 1 . 0 --------- --- years from this date, and as long thereafter as oil or gas or either of them is produced from
<br />sAid land, or from lAuds with which said land is pooled therewith, by c, see,
<br />3. In couisid-ation of the- provillist's the said lessee covenants and agrees:
<br />(a) To, ol0r, r to the credit of lessor, free of cost in the pipe line to which lessee may connect his wells, the equal cone- eighth part of all oil prortluced and saved from the
<br />1, it "d prevur,-, or of the lessee's option, may pity to the lessur for such one-eighth royalty, the market price for oil of like grade and gravity prevailing on the day such oil
<br />is naa out,, the pope Jr.,,. or uim storage tanks.
<br />(hl To pay I—or 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 juice art the well for the gas sold, used off the premises, or in the manufacture of products therefrom.
<br />eel I A g,v, %%oil capable of producing gas only and located (in the above described lands or on lands with which the above described lands or a portion thereof are
<br />pooled I ;,d ,;s, it my time, shut in And no gas therefrom is sold or used off of the Abuse described lands, or in the manufacture of natural gasoline or other products,
<br />it, ce-th , 1, 1 .,it_ in Las 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 />1, A,, 0-11 let for". donne All the time ter times while such well is so shut in, whether before or after the expiration of the primary term. Lessee shall use reasonable
<br />no, c I market do, g.v, capable of being produced from tiny such shut-in gas well, but shall be under no obligation to market such gas under terms, conditions or circum-
<br />stances which, it Lessee's itodgm,rit, exercised in good faith, are not for the best interests of both Lessor and Lessee.
<br />]'It,. teem ,tat,d dale" as used In this paragraph shall mean any rental paying date of this lease or any subsequent anniversary thereof if there be a rental paying date,
<br />but of •tal parn.g date is spe,i(i'd in this then "s Cited dAte" shall mean any aumv•rsAry dale of this lease, If on any such stated date there he on the Above de-
<br />scribed lands o un Iaud% with which the above described lands ur portion ther•Eef are pooled or tiniti<ed, one or inure such gas wells capable of producing gas only, and no
<br />va, has been +o)d ur d from •rry eof such gas wells at my time during the twelve months period enchng with such stated date, Lessee hall, before the expiration of
<br />—ty , 60 ) d.), tft,-r %uLh stated date, pay or tender to each owner of the right to receive 5alty on the gas produced from tiny part if the above described land% co,cred
<br />It,- this 1, .,so- m, ,tell 0.0cd dae At each such owiter'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 />i,-T pr-ule-d h-vin ffir paymcut of delay rentals, a sh"t-in gas royalty for such period, which shut-in gas royalty shall be determined as fojj.ws:
<br />, I'b,. f�,t.d ani-not of hut-in ga, to,)alty pa3able to all such owners shall be determined by multiplying One Dollar ($1.00) by the lotal number of acres of land covered
<br />It, AuI 1, "'.. '1 1, tat,d d.,to, ; .... I va,h ,uh nwrocr hall receive that part thereof which is in the proportion that his royalty acrvagw inturest in said land lit-Ars to the
<br />to t.d ihoeoll., r if A--, of la I rcd by %m_h b ai, on %uch stated date; Provided, however, that if on such stated date thi, lease is being maintained in fi—c and effect
<br />,,;hi thare bv r,a,on of a-, ole-h shut-in g.rn well or sbnt-in girs wells, Le,sce .,it he obliged to pay or tender my %itch seem of muncy ae, %lutt-in gas royalty.
<br />The langu;ag, "A ga, well pAhle if p 1—ing gas ly", As ii%(-(l in this Section 3(c) shall mean and include a well capable of prord—ireg nAt.,al gas rely ,, a well
<br />P.eh)v 4 1) th"ing nalunoj gas and/ur condensate. (or distillate, or a well classified as a gas well by ;my goververnt-ntal authority or any well in which the gas-oil ratin
<br />., — lowle lb.,t a vo—ru etal .-th-its, will .,it permit lo,tuid h0rocarbrons to he produced therefrom unless the gas is marketed.
<br />I if is F the. 40) ... L if a 11 fo, .,it or gas are I e,(,mn,vol,,vd or if the- is no nil or gas being produced on said land or tin acreage prooh-d there—th a,
<br />hrnanefter 1) .... .. bA (ule war from the (late heretif, this lease shall terminate is in both parties, einle.ss the lessee on or before that date shall pay or Wride,
<br />I" th, I—Noror to the lo—or', credit in the -Cairo State Bank at Cairo, Nebraska
<br />nr is su,c s ' ht,h hall ,,,it ... it(, as the cl,,p-%it,,,y for rental -ga,d)-s of changes in the )w,,,,,h.p of said ].and, the soon if
<br />Sixty and no/100 — — — --- — — — — — — — — — — — — — — — — — — — — — — — —
<br />DOLLAPS
<br />S -,Ate is a ental And ,c, the pe-Mlege of do-G."ing the c(immericernent of operations for drilling if a well for twihr
<br />op,
<br />th, f A,d dmv. 1. like d upm hke pa),nent, ,, fender, the . ........ t if ,perations for drillink of a well may he further deferred for like period,
<br />th" %.eu.(- Mon,bur if nonths succe-i—Iv. All paUnoents or tend-s mas, he rnade by check ,, draft of les-, ,, any assignee thereof, nailed ,, delisvrvd (in or before the
<br />—0.( po,,g d.,tv. It is od'—food A I agreed that the .,)td,,Mion first n-cited burvin, the down payment, Cu,re'j net ly the Inivilge granted t. the date when ,let
<br />fil't r, ]et." Is il,i),ahle is .11 ........ Id, I ... t it... the le"ce" right of e xtending that pe-rind its aforesaid, :end atly and All other rights conferred. Should tire de-IN)sitorry b.ink
<br />h, r, aft- , 1, o thout a 4—ce or It, assigns may deposit rewals or royalties in any National batik located in the same county with the first named bauk, due
<br />of h to I,,- mad,d t. I—or at last known address.
<br />'Xith r—p-t to the pa),er,vot if ;end the right to recvi%e dv]i`V rental% and royalties (including shut-in gas "iyaltics). it is agreed that the tumunatrun of a hit- estate,
<br />it ........ I jnwre,t ,, other precedent -%fill(- v,hcrc6y the Le—or shall come into passt—um or list- of an interest in said land shall, subject to all thc prej%isions of this
<br />b-,nue f,,e.n aud .,it,-, the ]at,- he. _h I hall have fuenislued sati,faet.,y t. Less" showing the toilulinati'm Ili IULh life Ute. term
<br />,itive-A isit--t or oaher pre-Led,tit est.ae, but for all ither purtipses this It-ase shall c,,%t-r such interest as and v,lut-n the Lessor shall so come into the possession or use of it.
<br />1, 1.4—ve, A it% "pir"n, 4, hereby go,e the "ght a I p—er to, I I or ctmildne the land c-cred fly this leave, or any po,tlun thereof. or fonuations thereunder, as it) oil
<br />-d I:.,,, ,, ,th- ,f th .jth,-, 11 ..... ... Aft- with ouly other )and. lease or Ira%vs when in Lessee's judgment it is necessary or ad%i%al)le to d. so I. t.
<br />, do . ... .. I Ie uI of autharritv similar it) this exists with ,-,p,-,-t to rich either limi(, lease or leas-. st,,h p—ling to fee tell,,
<br />well e .... I um,, i-t —eeed ... I! 1-ty 4 10) ; ....... phr, in ac,v.,gv toleyance of tell per cent ( 10%) tif forty (40) acres, for oil, and not ex—coling six hundred and ft,rty
<br />1,M) pho, An foil ........ . if tere per ent ( 10� I if six hund-d .,old forty (C-10) ae,. for gas, except that larger units m.- lie creAtcd tn coinfoorm to am
<br />nu: It I p.M. re, Ilim be I ...... .. level b, eo,, rearuvittal —thoritivs ha%,ng let .... hetiorn. 'Me pooling in one or "rare in,tan—, shall n.. t ha.st the nmilts if
<br />pan I I ........... 1, , to, p".ol It— 1, As, or p-o-v, it t, ,, format the, b-,. into, other oil,. Le—ve shall —ccute in writing aud plAir- of rectad ail instrument
<br />it, ..'ed If"- fi,ouj"d rvage. P, luction, drilling rkinv ol—atuen, a,rwhere on a %met which nuhides All or A I'Art of it,,, Ica". hall
<br />ended _ j it ""'. p""Ie dMIulL ,.,,,k I., op-At is e, .... lu, th's lease. In beet if the- ro)altivs (excepting shut-in ga, el--h-c It vp—Aied,
<br />h;.Il Jomn e.eet - fit . .... . I it, such poru,,u if the stitatlated h,-,,i. a, the amount elf his Acreage- placed in the unit or his ro)alty itite'—t th—,ire
<br />to, the- tol 0 a, , air, ... 1h, uu,1 let it,,- ;J ...... ce if j—d—tion Li—ev mas, terminAte ;%its- unitiied Area lot filink of rce"'d ru'uCe 'of
<br />uuh." Co- .......... I or unt, ... oovuh ed.-utif—eg Ar,d d-c"hing tire ut'itized area -intain I ....... ions for upore Uu)
<br />If or 1" di, c", i of oil "r ca, it., %.,I,] IAnd, or eev p tied therewith, It—er Nhould drill a dry hole or holes thervem, or if After di-n—o-v if oil or gas pr.duc-
<br />�h. rea,ter hes,*l ... is, I .".%. Ill., h-a— h.dI 'e"t feet .... lAte ( I.—ve c neu—s Additional drilling or reworkint., aperAtwns s)Ihm iiAt, 4 (30) dA th it,-,,
<br />it It.- - etlw.. fh, p,m, ry I, ,it , ,00ll % or I •, if,,- pa . ...... it — wride, (if rental in r before the r—t.1-pa,ing dAte riest crestung aft— the of tiu-t-e-
<br />(�,,: (I..t. -.1 -1.10 if A d- I."] , ... ....... li"n of p"Ou'lion. If At fit(- expiration it( the prjrna� tenet it or gas is lot being ptioduced .... ..... I Lend. or
<br />Ave j,"'s 6 1 1 1 .% th tagvd ... ohflhnv . , r ,—riomg op-atum, there... tire, I,A,e hall ....... un in vffe-et set I g ,, ,pe"W", ele pnt,evuh d.
<br />(.;, I,n- o., .e4 , " 11 do, " oft— ', orru ... 1. sith ees,ation if (or(- than %i.ty 00) c.nsc,u1j,c day,. and if they —ult in it,,- jr-duete I oil
<br />Al . 1, 1, liv,,. �,Il iii , If— I — 1,k th,i, After As %h prodtiction continues.
<br />4 If :ud I ........ .. w-la 1--t ... tl,,- .,fee ...... lc,cr,hed Loved than the entire and wind—ded it-, simple estate the-in. then the o,.,It ul ental, I ......... pro,eded h.ell
<br />I... Pard the I n1v w whuh 1 ... ... ( I t" fit.. whole ;,.let mulnulvei fee-. Any interest I,, the- pmdueticrn from the fit 1, herein deseerb,d to, h,,h fit,
<br />wire r,t ,I A. s..v may 1- 1,1. ct h,II be. d,d000,d f-ro it,,- )alty le-vin n-s—ed.
<br />I-- hall fri— zi,- nght I .. ...... h.... of ."I. g.". oil and viah-T produced on said land for leswe's operation thereon. locept water f-en the 11, if le,urr.
<br />Wb"' be, I I ........ &JI burs, Inlet- Jim-, brl plow depth.
<br />No. 11 At.01 b,- bellvd I than 200 f,-,-t to, fit,. It ....... ,, bArn imix un said premises uithullt written consvia of lessor.
<br />I %hAII J'A " , 1", d j! ... . ........ I hV ,I I n, let g,,o.e,,g loops in said land.
<br />Lv,- hAI hA'e If,,- "I'let A my turn. t .. .. ..... ve all nA,I .... e-ry And io.lu,rs placed (in %.led piemives, including the tight fit tiraw aoid -too—c c-eng.
<br />M. If 11 tAtv ,I .-Ithur pA,ty lw[,n 1 ag,,ed . ..... I dev prnil,e, .4 a—m"eng in hol., or .. part 1, v,,111-0y alhilsed-11 ... co is ....... it, %haIl i tvild lot [liver le, to
<br />;Is
<br />,:.1 ad "I'at",%. u,,r, ,, a—g-, but .- liA,igv it the if fit,- L .... 1, or A—g,em 1, if ntal - 'Ahv, It. limit e m it,,- I urehl At.
<br />4, 1,- 1 he r,,,, I I ah p,r, M ............... 11 ,1 tell'. d,,A,g.eu,g title feel.. uld it is I I's agr,vd thm let it t (It., Ica'. 111 b, a"'e'-d
<br />1" A p."t — - to. jo."t, of the d.."'Ibed Imed, it,,- a—guve or A,%igievvii ,I s-h pait te.w, hall Led it, d0ault 1.1 file- IIA-11-olt it the
<br />,.."I if th is il", I ...... I "I it "'th Joall .... I ..pv,ate t. dvhAt or effect Ilik h-ase in so fier - of co,vr, A part - pa,t, A .,e,i land, .po. ,h,,,h it,,- .-I
<br />. ... .. ... ..... a".g.-- 11 1 'I'Al due pAsnec.,I of 'Aid 1. I.,e R,%ialr, thiei in .1 ... Ir ,, ,I part, hAI I I I of .,11 "W'g.mon, —0,
<br />to, 11 v d I h-, or it ... tr,i - .... ig ub,vqeee.A to, fit,- date of A-9 m-ut. In fit v ... ... it it do .,fit if .,.,% I ut.0% 1, ' 111.1%
<br />ti-.od 1, '—fal, f" th'. .,bf ,I (h, d ... ... d if,,- —fale if dw of a.d W .... h I ,, 6—ve % I ....... le'-d —0, ppe' o4 [I,,, %uI let it mui m,oh-
<br />it I if .I fit.. I.of f 11 1 le. fit lid lo."ve is It ...... hed .fit vI to. it to it,,- lue" ,, dc—ce, if the
<br />d If it I ... to- I o p- ...... be , ,t,tl I to, pA,tu,pAt,- fit fill pa%Able I emd-, I.--v As flat or et-,d- %.,,,I wnot% to ,h I it% it t,�
<br />lb. 'er "i I 'let ... Ile, d'-p-.0"'s, it I It .." AI let t thr prol to ... im, if ui r,tit,d, to, %,be,h riul, pmoc.pa,ot e, vw.ih-d I- pA,d — tv-
<br />1" Its, ",ehf ... %.,,,I and I Nne,ut (,r tender to. anv pA,tullo."'t .f let, jue.tne,o M if ital, I ....... uld", 'I'Al it.un th''
<br />I I L."', -A" A am, I ....... I ...... t ...... to, Ine .... .. ....... Iv .1 ... I deh—, to, I pla f ""J a "I. I,, ,, ".(raw, co—ma v,0 full t"n"t or an
<br />...'t ... .,If ." v 1,;,,t J Ibe 1, A,, d e an) "'er - ne"". ......... fonAl dvv(I .. ..... .It ... ..... I'Art ,I lb, It- e"d lb,,.pon lo.oli
<br />of ..If it it,., I .. ....... it. '-pect I., [to,- "nwii, fo-eAtue-, d.-I'll .. ... ..... le, "Ied ... I I. I .. .... 1, .0 let it,, ..",kt if A
<br />.1 .4 (fee% 1, A". As fee dI ,,:let . ... .... Iv a j,"t ,f the a'ra I m Ill.. b.-rd I"c"eile" or .11 J., in ... 1,11'ed"I to, .11 1 ........ trine, At ". A pall ,I ill, toward
<br />I ... ....... %, ell., fit,- drIAv ei tak provided for 'I'All It,- redue,rd Im.le-Ii telv.
<br />of, he, .......... i .... 4 "r, let a . ... 1. "ifer-pi-I ,, bi, link olf ."Irr. Lob,". wleol, I., "I't"i o to I I Ineve—, . fire.
<br />,it. look.-. with fail e, .I 1111ru-11 W I ...... pie, I ... I .... -1, In"I't'.., I... of An, 1111111"'l mod ...... I ho-'e-
<br />oil ma.ket, In Ix,we', opinua., for fit,, od or gA, let I ... ... 1. it ,, I vvidj if air .... Jr. .I A,,, loocl I R I ... I not
<br />1,1 Je,.111 1.k "1", 11 .61 111 IiI�M '
<br />jo�J
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