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N -1103
<br />Cherry Creek Block
<br />�ANSA$ BLUE PRIHICO
<br />10640 ERa as OIL AND GAS LEASE .,•,rr-�� -''r -'n•
<br />REV. 3 -59 �. :x.l�n rinnw.4,a -vknal n.,w ' :�r
<br />AGREEMENT Made and entered into the...- ._eZ!3 ........... ...... ...... day of...._ gthni!k y--•--------.----_.._-__-,_-_._._...._..--•----......_...-_._.....__._- .- ___..._...._..___._.._- ..._., 19- �i - --• -:
<br />by and betNeen.....l+�t'sY 9��i La`erYle 'r!`9�@r and Doroth 1 e n
<br />- -
<br />............. . ................ ................. ......... -----------_....__........._.......------........_........._._...,._._....._,..._._..._.. ........--- ........_........ - -- .... .............. ... ........................ ..._.._... .- ..........
<br />__.._ ...... _ .....
<br />whose mailing address is - »4A_K@ 111,3 a_ .9bf 8 SIC a- ,• „- ,•• „�._ »...• » ................................
<br />lssot (whether one of more), mind - `............ e OCOnnell _..__» ....... .
<br />hereinafter call
<br />- ed• ";.
<br />'-- ,, _o
<br />_. _ . .. .................... .....__ - -._.- ...._._..._._.....-'-•-_-°-•°----..._. ...._ . __.—...._ ..-°-----..___...__.-_.._----°_ ............_ ..... ------ -------- be ter called
<br />I. WITNESS$TH: That the said lessor, for and in consideration
<br />p r'in pt - c D
<br />_....- ....... --- --- - -------------- -_,_°• - _------- ---- --------------- -_ =••- .:..... o arse
<br />cash in hand Paid, the receipt of which is hereby acknowledged, and f the covenants and agreements hereinafter contained on art of lessee to be paid, kept and
<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 thereon to produce, save and take ' :'
<br />care of said products, all that certaift tract of land situated in the County of. -._dl l__ '•x�: *_
<br />State of.- �Isb.1_O 8.k(�____..._ -._.
<br />described as follows, lo- wit: - ------ --• ° °-------- ---------•-----•--_..---.-•- .
<br />y;
<br />,c s . g-- Z 6Q---•-•- ... '-- --- - - - ac --- or les7...
<br />f Section.._s3Q .. ..........._.._. Township.- 12._.- _- _..._._.._ Range-- 12_.- _._.__ -..___ and contaiain -- --- re% more '.
<br />,•,:
<br />said It is adored, that this lease shall remain d force for ■term of ._- essee.__- ..__._..years from this date, and as long thereafter as oil or gas or either of them is produced fronts '
<br />sand 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 delh'pr to the credit of lessor, free of cost in the pipe line to which lessee ma connect his wells, the equal one- eighth part of all oil produced and saved from
<br />g. leased premises, oorr at the lessees option, may pay to the lessor for such one - eighth royalty, the market price for oil of like grade and gravity prevailing on the day such oil, '.,, !
<br />is run into t e pipe line or into storage tanks.
<br />(b) To 'pay lessor for gat q� whatsoever nature or kind produced and sold, or used off the premises, or used in the manufacture of any products therefrom, one -ei•b .
<br />M At the market price at the well for the gas sold, used off the premises, or in the manufacture of products therefrom. 6 ”
<br />i (c) IF a Sas'wcU 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 a're'
<br />. pooled or unitized lc,'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 a'
<br />nevvil ties; such s 'ut -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 />p lease shall continu in, force during all the time or times while such well is se shut in, whether before or after the expiration of the primary term. Lessee shall use reasonafllei” ,t
<br />diligell 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 circulrp ;,' r'
<br />, stancef "which,,in,bessee'.judgment, exercised in good faith, are not fog the best interests of both Lessor and Lessee.
<br />P
<br />The term stated date" as used in this paragraph hall mean any rental paying date of this ]ease, or any subsequent anniversary thereof if there be a rental paying date,-_` :
<br />fiut if no rental 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
<br />S, scribed landq'or on lands with which the above described lands or portion thereof are pooled or unitized,,ime or more such gas welts capable of producing gas only, and pd''
<br />gas has been sold w 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) diij•s,after such stated date, pay or tender to each owner of the right to receive royalty on the'kas producedfrmn any part of the above described lands covered;;"
<br />by, this lease on such stated d 'ate 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 map.t;.
<br />'•xljaPer 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 />iThe 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,µ
<br />my said lea%q 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 bean to tare, --'';r
<br />Dotal number of acreyi of land covered by such (case on such stated date; Provided, however, that if on such stated date,tbis lease is being maintained in force and effect"
<br />Otherwise than by',reason of any such shut -in gas well or shut -in gas wells, Lessee shall not be obliged to ay or tendcK any such sum of money nsshut -in gas royaltyd :,' °'
<br />'late' 1 nguage ' a swell ca tole of Producing gas only". p P prod w, pp $ p: pp y as used in this Section 3(c) shall mean and include a well capable of ucing natural gas only or ■ well:'`,;; :
<br />i.,., capabib of groducmq 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 />N so high h that a, governmental authority will not permit liquid hydrocarbons to be produced therefrom unless the gas is marketed.: r
<br />1. if op rations fur slits drilling of a well for oil or gat ere not commenced or f there is no oil or gas bring produced on said land or on acreage pooled therewith as ";•d, >.
<br />heremaftoir provided on or before one year from the date hereof, this lease shall terminate as to both parties, unless the lessee on or before that dale shall pay or tende4;
<br />r the Ics the lessors credit in the,svlete B- alk -Of Cairo .......... .......... ...... Bank at...li &1 ..---- ----
<br />- - "`.
<br />tb�.. s s •sqr or to ll continue - y - . .. - - -g - e - - p -•-- -- - --••- it
<br />,i o ,. O rty &Ad • the depository for r =asst regardless of changes in the ownership said land. the sum of...-°--° ........................ ....•--- •----......---------••-
<br />s C t 1'O it
<br />con4nue as t- • » -• • ^ -.-
<br />fi successors, which c aB _ ,,., -- _ ...... ----- ------------------ ---
<br />°...DOLLARS. zt. ,,
<br />* 40.00
<br />d (g ",_ -__ - _--- ,- :..._._;,:- .. :.. : : :- _•........ )Nhich shag operate �ae ♦rental and cover the privilege of deferring the commencement of operations for drilling of a well for twelve').it,'
<br />br, months fro nts said dale ,In like manner and,uPOP Itke payments of tcnden the commencement of operations for drilling of a well may he further deferred for like periods,,,,
<br />qt, tasks sain6 number of months suceessicely. 111 prymenN or tcnden may he made by check or draft of lessee or any assigned¢ therevft mailed or drliverrd on or before slip -,.
<br />.i rental paying dptees lt, is understood and agreed that the `consideration first recitea
<br />herein, the down payment, coven not only th8 pnvilrge granted to the date when said `
<br />o firs[ rental s p+iy;ihle as aforesaid, but ;dsq the lessees right of extending that period as aforesaid, and any and all other rights conferred. Should the depository bank
<br />hcrrafter close without a successor, lessee or its assigns may deposit rentals or royal
<br />ties in any National bank located in the same county with the first named bank, due
<br />S' notice of such deposit to be mailed tq lessor at last known address.
<br />S. 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 r
<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 puropses this lease shall cover such interest as and when the Lessor sha11 so come into the possession or use of it
<br />' M Lessee, 'at its option;' is hereby given the right and power to Vol or combine the land covered by,. this lease, or any portion. thereof, or,formations thereunder, as to oft-`
<br />end gal, oir either of them, either before or after' production„ with any other land, lease or leases when in Lessee's judgment it ii necessary or advisable to do so in order tpsY
<br />properly,ol&elop• or operate said premises, ind iirespective_of whether -Authority similar to this exists with respect to such other land, lease or leases, such pooling to
<br />rs a well ugit'or- yoits, out , exceeding forty (40) acres, plus an acreage tolerance of.tgn per will (10%) of forty (40) acres, for oll,•and 'not exceeding six hundred and forty,
<br />(640)' acres, plus an d4eagE tolerance of tea per cent (10%) of six hundred and forty (640) acres, for gas, except that Iarger units may be created to conform to any—,.'
<br />c •,rink or :veal unit pattern that may be prescribed by governmental authorities, having jurisdiction. The pooling in one or more instances shall not exhaust the rights of�", "
<br />the la`SSee he•ritqoler. to, pool this lease or portions thereof. of formations thereunder, into other units. Lessee shall execute in writing and place of record an instrument; ..
<br />qqrr igstnimzenb iol -ti ifyink and descnbig the pooled acreage. Production, drilling or reworking operations anywhere on a unit which includes all or apart of this lease sha
<br />be; treated-as if it were production, drilling or reworking operations under this lease. In lieu of the royalties (excepting shut -in gas royalties) elsewhere herein s
<br />Le"pR�s hall rrQrf a 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 there q
<br />hearx,lA tb, %%;lCaWw v so pooled in the particular unit involved. In the absence rif production Gessee may terminate any - ainitizggd area by filing of named notice fi
<br />.lrrmina(`(,Sl3nl�s3 +f;(i ctronent or instruments, identihving and- descnbina the unitized area contain provisions for termination'upoa5 certain contingencies.
<br />F 7t 1 ' #Pr' discPtz' 'r)Tvdf urtrpf ga{ on said land, or on acreage pooled therewitlf,'lcssee should drill a dry hole or holes thereon,,or if after discovery of oil or gas produa•: ", -
<br />tom t u•rey r ' tiguyg •o Tis� jul� any cause, this, lease shall and terminate if lessee %commences additional drilling or reworkin operations within sixty (80) days -
<br />+«, 'r ;if �f' hp t in !llllllhmm»( tylSnmli'ry {yin) commences or resutno the payment or tender of rental on or before the rental- paying. date, next ensuing after the expiration of three
<br />o lSis 9 (retm�. trine d: t e prpletion of a dry hole of cessation f production. If at the expiration of the primary term oil or gas is not being produced on said land, or
<br />a tlyr mi?7t1 1yQ �liafemN'6i, mind lessee is then engaged, in it )bast Qr reworking operations thereon, this lease shall remain in effect so long as operations are prosecuted.'
<br />N iii ht>; a -15 it,r. an , otfet well thereafter cvim,mencGd, ,wills no cessation of more than sixty (80) cogyecutivt dnye, and if they result m the production of
<br />( s,>� ol•z tt;K .ti it ri• tiin'l ri.a•H.•ct so long thercaftrr- as siteA psrod ction continues.
<br />asd a ,y.-q yJ' - -
<br />'' )Vt 4s . WJt/ in the shave- dcscnbed,.land than the entire ,a'pd undivided fee simple estate therein, then the royaltipit 'and rentals herein provided dial('-
<br />b/� patfd',t.� tl osu'only in i FtWn which his interest bears to the, "whole and" undivided fee. Any interest in the production from the ]ands herein described to which sha,-"
<br />•rin rest o># a con m b so y s ill he deducted from the ro al h ieirt served.
<br />' � ; ,,,��1t,, .� � _ '�' �yS.d. �;. ,Y" ,� �• ppro t ••-.
<br />9i Lyssct • hnjc,1ls;,?' o tq( use, free of cost, gas, oil and wa rh produced o said land for lessees operation thereon; except water from the wells f lessor.
<br />iVir yyGGc P • by it ,yy slPi etr shall bury lessee's pipe lines line ow plti depth
<br />LLl� silled�trigrel than 200 feet to the house or hard now',oai,said premises without written consent of lessor.
<br />`
<br />Lessee s�ia)y • tetimages caused by lessees operations to R crops on said land. ,
<br />q s e x a shall. alR t e,, right J any time to remove ell mac•$itgcry' and A{ lures placed on said premises, including the right to draw and remove casing.
<br />10,4 If the esj rta W, vither'�3ity hereto is assigned -and' the privi ege of assigminS in whole or in part is expressly allowed -the covenants hereof shall extend to, their heirs' ge;;
<br />executun,, ad-4 istrato^.s"ucprssoq of assigns, bet nq ghange i the ownership of the land, or assignments of rented or royalties shall be binding on the lessee until aft%
<br />thti )assets hat Berri fumtshed °'with' certified coppse oif muumeny p( title defaigning title from lessor; and it i hereby agreed that in the event this lease shalt be assigned
<br />At, to a pert or N ta, parts of the above ded".9 lands and t 'assi net or assignees of such part or park's all fail or make default in the payment of the proportionatei ;
<br />ppa#- f tjie rents due,frmm, him of them, such defifftault shall not opera to defeat or affect this lease in so far as it coven ■ yart or parts of said lands upon which the saidj,:j'
<br />:, lessee sir "an "assignee thereof shalt make due payment of said Ie,ntal._ In case lessee assigns this lease, in whole or in part, tessera shall be relieved of all ohligations "itli
<br />sespet to the assigned portion or portions arising subsequent t the slate 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 esta oft deceased until such time ,as lessee is furnished with proper evidence of the appointment and quali -•.
<br />fication' of . n executor or administrator of the estate, or if the he none, then until lessee is furnished with evidence satisfactory it as to t
<br />deceased, jf at Any time two or more rsons he entitled to pertfci t! ill t rem of ry q he heirs or devisees of the' •-
<br />q Pe 1 p}�+t hp t payable hereunder, Lessee may pay or tender said rental jointy 'to, such persons or to- '
<br />' their joint rp credit
<br />se ar the' depository named hcrefnc in or, at i f asset's' ryl ann, the eat proportionate r t part f said rental to which each participant is entitled may Ile paid or ten
<br />dried to hire separately or to his srparito credit in said, drpositgryi and payment or tender to any participant of his portion f the rentals hereunder shall maintain this,
<br />lease as ,tift goch particn qnt.
<br />, ilk ir"fl;,a.� `4"h .,;i
<br />., alt Ii•scet+ mayf at 'any?, time, 'and from pmt +.t0 ti recoup and ver to,Lessod or pfaor of record a release or releases covering either a full interest or an undivided, o
<br />interest id all or hnv part of the )cased premfsrli of ig An one or jngre zones, formations or deptbi'undt-dying all or any part of the leased premises and thereupon shall. :
<br />he relieved of all- obligations thereafter to acres with}y respect to the ' A. zones, formations, depths or undivided interests covered by such release. In the event of ■ re -!.
<br />lease of thin lease as to all rights in only A partBpf tliq ores embraced, in 0e leased premises, or as to an undivided interest on all formations in all or a Part a the leased - °' ^'
<br />,; premisc•s+ ihilregffer the° ela rrntab hrreinab ve ro id€) fg shall t,e reduce proportionately .
<br />E 1$.H' ;. - r, �•s9: %, a .s i r.'
<br />h ilriginq, pmkliip(iott nr othef nrxrahono gee „deja}ea inirrrupted or stopped by lack of water, labor, material, inability to obtain access to leased premises, fire,' `n
<br />fl °ady N;ti rc r(lign, iilsiori•gto ti riot, strike, difteren(e�, it wor%men,.,failure of carriers to transport or fumisli facilities for transportation of any product produced here
<br />tiyndy Iac}t o at ail (late +I;t s Itshacto; �' arkc its Lessee a opinion; for' the oU oN gas produced, or as a result of an order of Any governmental ngency, ((nchoding but not • '
<br />3 S”-
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