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<br />K' ANSASBLUEPRMYCo,O C
<br />PRODUCERS e9 h - -
<br />40.644 " Cherry Creek Bl "ool�
<br />REV, 9.58 OIL � ' AN D-- GAS :. L E A �$ I"
<br />_ -
<br />AGREEME1VT Made a. nd .e.n- tered s into to t.h.. e
<br />y- .- . - ...... ...... .... - -.. .. °-..•,
<br />, ,e _-°.... .. ..... ........ .... . ......
<br />T: Ltfry h Y and betty en. hus:aa&�5.wa£
<br />- .... ...... ....._.,.._.......... ......... •...,_....................... .....__...._...,._..._.. -. --------..._....._......_._._ .._._.:_,. ..._
<br />whose Fmailing address is :...-_-.Cex -io, • ----... ----=---------:........._.. ---....-- •--- ..- ..,.._- . :_..... -.,....., .,,...- .,thereinaftercalled,,',
<br />Lessor (whether o_ne or more), and- .....+�'r- �!�_a.�C�✓� 1 : :.�� �- -, °-_..._...: ° ....... .. ... ........... ... .................. .._, ._.., :_.- .. :_...__..
<br />...... ...... ...... °...:.._ , hereinafter called Lessee:.•
<br />cash in ESSEP f, thetrthe said ofesso his and in consideration of._.- 11,- X�ef'�A�1? 9 - -a-1 -T-' o
<br />- .._. Dollars, '
<br />hereby acknowledged,- and of the' covenants` and agreements hereinafter_ coirtained 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 fur oil and gas, 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 tractbf land situated in the County of._ -,- i@�� :,. ............. . ..-. _.,...... -..-„ ... State of_ __- �T�bCaS�Ca••••__..•_- • -•_ -r-
<br />described as follows, tit- wlt :.. °- -ILA . - °• - -.._._ . _ `• '.._... ,,. •-----_- --
<br />........... ,...-
<br />- ..._. -_.... ......... _._.. -----••--- •-- ••---_.,,._.,._.. :.:. ----------• ---- _ :_._..
<br />of Section .,_....
<br />on_��-- ... ....... ..... Township -� 2i.,:._ ,_ :.. -._ Range..._�e_----- and containing 6 - - --- -- - -- - - --
<br />2, It is agreed that this lease shall remain in force for a term of . t.] Q__.C. :,.__- __years from this date; and as long thereafter as oil or 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 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 map connect his wells, the equal ono- eighth part of all oil produced and saved from the
<br />leased premises, or at the lessee's option, may pay to the lessor for such one=eighth royalty, the, market price for oil of lice grade and gravity prevailing on the day such oil
<br />is run into the Pipe line or into storage tanks, - -
<br />(b) To pay lessor 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 />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 />packed or maitized is, at any time, shut in :md no gas therefrom is sold or used off of the above described lands, or in the manufacture of natural gasoline or other products,
<br />nevertheless such shut -in yes well shall, -under all the provisions uE this lease, be deemed to be a well on the above described lands producing gas in paying quantities and this-,
<br />less' shall continue im force during all the time or times while such well is so shut in, whether before or after the expiration of the primary term. Lessee shall use reasonable;
<br />. " diligene_o !o 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 terns, conditions or circure--
<br />stunces which, in Lessees judgment, exercised in good faith, :us' nut for the best irterests of both Lessor and Lessee,,, - - -. -
<br />The term "stated date' as used in thin parngruph shall mean any rental paying date of this lease' or any subsequent anniversary thereof if. there be a rental paying date,-
<br />-' but if no {ental Paying date is specified in this lease, then "stated dale' shall mean any anniversary date of this lease; If on any such stated date there be on the above de-
<br />scribed lands or on 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 has been sold o{ so used from any of such gars wells at any time during the twelve months period ending with such stated date, Lessee shall, before the expiration of
<br />sixty (GO)' days after such stated date, pay or tender to each owner of the right to receive royalty on the gas'produced from any part'uf the above described lands covered -;
<br />by (his 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 bank named, herein, in the man-
<br />ner provided herein for payment of delay rentals, a shut -in gas royalty,for sue b Period, which shut -in gas royalty shall be determiged as followsi - -
<br />The total amount of shut -in gas royalty payable to all such owners shall be determined' by multiplying One Dollar ($1.00) by the total number of acres of land covered:- --
<br />` by said lease on such started 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 :!secs of land covered by such lease, on such stated date; Provided, however, that if on such stated date this ]case is being maintained in force and effect -
<br />atherwise shim by reason of env such shut -in gas well' or shut -in gas wells, Lessee shall not be obliged to pay or tender any such sum of money as shut -in gas royalty..-
<br />The language "a gas we 11 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 inmducing 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 !sigh tlmt a gaucmmentul 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 nfl or gas being produced on said land or on acreage pooled therewith as
<br />hereinafter Provided on or before one year from Sibs' date hereof, this le,
<br />'is shall terminate as to both parties, unless the lessee on or before that date shall pay or tender
<br />! to the lessor or to the lessor's credit in the _-5. Q_ k of' Cairo, _ _._ __-• -,_ -- anat a
<br />u e its
<br />t - _ �__ _epo _•ry regardless of changes in owner -hip of ^aid land, the sum of-_..+... w-.^-_-.-..-... ._---_- „,_.,._,_-•-----•--- --,
<br />or in� ac ss s. h shall Q continue as the depository for rental - ...._. -. ° ^- -- --- ---- _.. - ... -- -- -_ �---- -- ...._-M_DO
<br />f/ V • • - • - - - -- LLARS
<br />months from said date. In like manner shall Payments and commencement d f operrationscfomncncemenf of operations for drilling er a well for twelve
<br />( s - --
<br />or drilling si n- well maybe further deferred for like periods
<br />- of the swine Wombat of months successively. All payments or tenders may be made by check or draft of lessee or any assignee thereufr mailed or delivered on or before the _
<br />rental paying date, It is understood and agreed that the consideration first recited herein, the down pa ment, covers not only the privilege granted to the date when said
<br />first rental is payable its aforesaid, hot 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 bank 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. 1 r
<br />5, With respect 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 mineral interest 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 />lease, become 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 puropscs this lease shall cover such interest as and when the Lessor shall so come into the possession or use of it. ,
<br />6. Lessee, at its option, is hereby given the right and power to pool 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 ]cases when in Lessee's judgment it is necessary or advisable to do so in order to
<br />prmi and develop or operate said premises• irrespective of whether authority - similar to this exists with respect to such other land, lease, or leases, 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, 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 />spacing or }well unit pattern that may he prescribed by governmental” authorities having jurisdiction. The pooling. in one or more instances shall not exhaust the rights of
<br />the Lessee well 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 instruments identifying and describing the pooled acreage, Production, drilling or reworking operations anywhere on a _unit which includes all are part of this lease shall -
<br />be treated ,is if it were production, drilling or reworking operations under this lease. In licit of the royalties (excepting shut -in gas royalties) elsewhere. herein specified,, '•
<br />Lessor shall receive from a unit so formed only such portion of the royalty stipulated herein as the amount of his acreage placed in the unit or his royalty interest therein
<br />hears to the total acreage so pooled in the particular unit involved. In the absence of production Lessee may terminate any unitized area by filing of record notice of
<br />termination unless the instrument or instruments identifying and describing the unitized area contain. provisions for termination upon certain contingencies. - -
<br />7. If prior to discovery of oil or gas on said land, or on acreage pooled therewith, lessee should' drill a dry hole or holes thereon, or if after discovery of oil or gas-produc-
<br />tion thereafter should' vea.se, for any cause, this lease shall not terminate if lessee commences additional drilling or reworking operations within sixty (60) days thereafter„
<br />or (if it he within tJSq orhnary.,tenn) commences or resumes the payment or tender of rental on or before the rental- paying date next ensuing after the expiration of three
<br />(3) months from the ti,rte /nf� completion of a dry, hole or cessation of production. If at the expiration of the primary term oil or gas is not being produced on said land, or
<br />- on acreage pp ,Wed, the;rc•with, rut lessee is then engaged in drilling or reworking operations thereon, this lease shall remain in effect so long as operations are prosecuted,
<br />either on thA'sa iq ` �Il tor' ilo o)hi•r well thereafter commenced, with no cessation of more than sixty (GO) consecutive days, and if they .result in the production of oil
<br />or gall, th�s letisr� s all reip i`y'in AfEuet
<br />NO long thereafter as such production continues. - - S. If said sic, §s�r ow'n( yri]e[•cCCtinterc,� irY, the above- described land than the entire and undivided fee simple_ estate therein, then the royalties and yentals herein provided shall
<br />F' be Paid ;[hg• l'ecgotj e1i17f to pro nrtinn which his interest hears to the whole and undivided fee. Any interest in the production from the lands herein described to which the
<br />interest pfi ]l!issome' u�a,tb- he sql c t shy 11 hp deducted from the royalty herein reserved. `' - - -
<br />9 Lc�ssek ,hallshaY'g t�ig�n� lit to�,'rt a free of cost, gas, oil and water produced on said land for lessee's operation thereon, except water from the, wells of lessor. -
<br />WK$m requcsked Toy le'snr, .5. sha11 bury lessee 's pipe lines below plow depth.
<br />NO ydlt wall rills'Q tvearti(S than 200 feet to the house or barn now on said premises without written consent of lessor. "
<br />Less c ,h• hall" ..� jr l - - _ ., -
<br />e, p inn d.) image ,caused by lessee's operations to growing crops on said land.
<br />Lessee sbal lic qp.f elyi�ht a shy time to remove all machinery' and fixtures placed on said premises, including the right to draw and remove casing,
<br />10. if the es(ate •o` either' party hereto is assigned-and the privile p of assigning in whole or in part is expressly allowed -the covenants hereof shall extend to the ir heirs;
<br />executors, admui.,•'traunrs, successors or assigns, but nit' change in Sibs ownership- f the land, or assignments of rental or royalties shall be binding on the lessee 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 event this lease shall be assigned
<br />as to a Part of as to parts of the above described lands and the assignee or assignees of such part or parts shall fail or make default in the payincut of the proportionate
<br />Fart of the rents due from him or them, such default shalt not operate to defeat or affect this lease in so far as it covers a part or parts of said lands upon which the said
<br />" lessee or any assignee thereof shall make due payment of said rental, In case lessee assigns this lease, in whole or in part, lessee shall be relieved of all obligations with
<br />respect to the assigned portion or portions arising subsequent_ to the date of assignment. In the event of death of any person entitled to rentals hereunder, lessee may pay
<br />or 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 ;in executor or administrator of the estate, or if there he none, then until lessee ]a furnished with evidence. satisfactory to it as to the heirs or devisees of the
<br />deceased. If at may, time two or more persons be entitled to participate in the rental payable hereunder; Lcssge may Pay or tender said rental jollity 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 be paid or ten
<br />dared to him separately or to his separate credit in said depositoryi and Payment or tender to any participant of his portion of the rentals hereunder shall maintain this
<br />]ease as to such participant. -
<br />11. Lessee may, at any time, and from time to time; execute and deliver to Lessor or place of recoria' release or releases covering 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 be relieved of- all obligations thereafter to accrue with respect to the area; zones, formations, depths or' undivided interests covered by such release. In the event of a re
<br />)ease of this lease as to all rights in only a part of the area embraced in the leased premises, or as to' an undivided interest in all formations In all or n part f the leased'
<br />Premises, ,hereafter the delay rentals hereinabove provided for shall be reduced proportionatelyr'
<br />12, When drilling,- production' or other operations are delayed, interrupted or stopped, by lack of water, labor, material, inability to obtain access to leased premises, fire,
<br />flood, war• rebellion, insurrecilen. riot, strike, differences with workmen, failure of carriers to transport or • furnish facilities for transportation of any product produced here -
<br />- under, lack of awailal]le or satisfactory market, in Lessee & opinion, for the ail' or gas produced, or as, a result of an 'order of any governmental agency, ( including but not "
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