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Cherry Creek Block
<br />PRODUG4Rf ae . gy,
<br />R OIL- AND GAS LEASE
<br />4 3 F,V. �•5f � '
<br />N -U 02 3 s/
<br />NSAf BLUE PRINiCO.i)tc
<br />ua,r _`�e kru aw6n L- YkFMtr'e,,.
<br />by and bctwoien:.. T re into ths.. _._213 ....................... day of. k ebrq ax _...................................._................. .............._......,....,..._ - ........._........._......,
<br />AGREEMENLourencet11fillia -m, Ileayer and Gertrude Yaxina �"ey , husLand trld wife
<br />whose mailing address to ..Ca K?Jt Yebr'akka .................... _ .............. ................... ' .... ,,__.,.,,,_ -,__
<br />...................... _ .... ....... ..... .... ........ ....................
<br />Lessor (whether one or more), and....FrO� .QCti0nri911
<br />rclnaftetr Palled.
<br />_............ ...,.................. 1 s a� Gkl alone ...........__.._
<br />_........:..._ _......- ............ ...... ......... _............... - •-••••- _......., er er called Le {sea
<br />;,� Sixteen and no 100 -' -
<br />I. iN'ITNESS aid,eth trehesei.. teµhecfgiandincpnsideratf000f..».. ..,.r_ .... ................_..,. -. -. ,.....,. ._.............,...,_....,�... ....�_..,........,.-- ......... .... �. �e
<br />i 1,
<br />cash" in hat d p' P P of 4 4 hereby, gelinowledgM. gnd' orf the covenants and agreements hereinafter contained on pall oaf, lessee to he paid, kept -and performed.
<br />has 'granted. demmed, 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 metbods ;,mining and operating for oil and gas, end of laying of pipe lines, and of building tanks, power stations and structures thereon to produce, save and take
<br />care uf'said follows, fall that ce_ at4 act land situated to the Coun of...,......._�t .:...: ..........' ......... .... , iTebraska
<br />products;
<br />,S .._,,,.,_ -tote _,
<br />.- ........... _ ....... ....................................... _._ - . ...........
<br />,
<br />of Section,.}�.,�;.. : ........... -.. Townshi ,.�:_2--- ..... _._..._ � ......... .;_ and containing.. ------------------......_--- ---_......_------ --._...._ -__._
<br />said land, re from t the with which aid land it pooled therewith, b n T, hi te, and as long thereafter as oil or _,,,__.,eith..,_o ,..acres, more od ,less.
<br />Range....
<br />sa
<br />2. It is ngoced that lhfs i ith shall remain d force for a term" y less ... ..........__yen ro th6 w ells w either xt them is produced from
<br />° Y lessee. -
<br />3, In consideration of the premise the said lessee covenants and agreest
<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 an on produced and saved from the
<br />leased premises, w at the lessee s 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 />If run ado the pipe line or into storage tanks. ,
<br />(b To pay lessor for Pus of whatsoever nature or ind produced and sold, or used off the premises, or used if the manufacture of any products therefrom, one- eigbth,
<br />at the rjlitrket price at the yen for the S -sold, used of tho premises, or in the manufacture of products therefrom, '
<br />(0' If t( gas well cnPpble of producing gas only anal located on the above described lands` or on lands with 'which the above "described lands or a portion thereof are
<br />Pooled or unitiztd is, at in time, shut in 'and no gas therefrom is sold or used off of the above described lands, ust ip, the manufacture of natured gasoline or other products,
<br />neverthcWss such shut -in gas well shall, unylcr all the provisions of this lease, be deemed to be a well on the - above described lands producing gas in paying quantities and thy
<br />leas@ shall continue in force during all the time to times while such well is so shut in whrthty br�ore or after the expiration of t)ie primary term Lessee shall use reasonable .
<br />1 diligelcV,to market the lets capable oaf being produced from any such shut -in gat welt but s an be under no obliggation,to market such gas under terms, conditions or circum-
<br />stsln 41 a' in Lessee s ju gment, exercised in good fgith, are not for the best interests of both Lessor and Lessee.
<br />e
<br />term "stated date"' used in thii'parngraph hell mean any rental paying date of thin lease to any subsequent anniversary thereof if there be a rental paying date.
<br />but i► no rent.tl p:q ins ditto is specified in this lease, then "stated ditto' shall mean any anniversary date of this lease. If on any such ftated 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 apable of roducing gas only, and no
<br />gas has bean' sold or so used from any of such gars wells at any time during the twelve months period ending with such stated date, ssee shall, before the expiration of ' '
<br />'sixty( (60) days After such stated date, pays or tender to each owner of the right to feceive royalty on the gas produced from any pa oaf the above described lands covered
<br />by this le se on such stilted date at each such owners address :s last known to lessee, or to the credit of each, such owner in the deposjtory bank named herein, in the man-
<br />ner provi5 tad beicin for payment of delay( rentals, a shut -in gas royalty for such period. which shut -in gas royalty shall be determined as follows:
<br />Toe hotel amount of shut -in gay royalty payable to all such owners shall be determined fly multiplying One Dollar ($1.00) by the kotal number of acres of land covered
<br />by said lease on such stated date, and each such owner shall receive that part thereof which is in the proportion, thlt his royalty acre `age interest in said land bean to the
<br />total,nutrllscr of acres of lend covered by such lease on such stated datel Provided, however, that if on such stated date this lease is being maintained in force and effect
<br />;'other- iie'than by reason of Auy such shut -in gas well or shut -in gas wells. Lessee shall not be obliged to ppay or tender any such',sunn of money as shut -in gas royalty.
<br />The language ' a yeas well capimle of producing gas only as used in this Section 3(c) shall mean and include a well capable of producing natural gas only or aywell
<br />i capable of liroducmR 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 -od ratio
<br />is so big4I at a gou•mmmntal authority will not permit liquid hydrocarbons to hk produced therefrom unless the gas is marketed.
<br />' l: li opptt'atiolis fur the drilling of a well 'for oit or gat are not commenced or if there is no oil or gas being produced on said' -land or on acreage pooled therewith as
<br />hrremuftI provided on or before one your from the ditto hereof, this lease shall terminate as to both parties, unless the lessee on gr before that date shall pay or tender ,
<br />°`` State Bank of Cairo Caaro R'ebraska
<br />to the lessor or to the lessors credit in tho _ ...................... ........... ................... .. _.._•---,.,...._...--.-...._... Bank at. -.. a ............................... o
<br />...................... ------- ---- .............
<br />. ».., -.. ,
<br />us s successors, which sh I continue as the depository for rental regardless of changes in the ownership of said land, the sum of.. ............ ........................ I . ............... .
<br />' Forty and no 100 _ _
<br />........... .... ............ I................. .......... ... ............ .. ..... . ............ ..r ......................... - - - .. - - - .. - - - -
<br />.............--°--..._......-... ..---- ------........- ----'••--. - ....a__.:n.. °-DOLLARS
<br />(9 -: !0 a 0 _�- ......._ :' :....... )which shall opeiale s a rental and cover the privilege of deferring the commencement d oy orations for drilling d a well for twelve
<br />nunitlns from said date. In like manner and upon like payments ur lenders the commencement of operations for drilling of ■ well may be further deferred for like periods
<br />tit
<br />he some number of months successively, All Payments or tendon may be made by check or draft of lessee or any assignee thereof, mailed or delivered on or before the
<br />- rental paying date. It is unticrslond and ny;rced that the crosideration first recited herein, the down payment, covers not only the privilege granted to the date when said
<br />first' renl,tl ls p:q'.thla is aforesaid, but also the lessees right of extending that period :p' afuresaiel, and any and :dl olhgr rights conferred. Should the depository honk
<br />herafter clasp without a successor, lessee or its it nny deposit rentals or myalties in any National bank located in tote same county with the first named bank, due
<br />notice ed such deposit to be mailed to lessor at last known address.
<br />S. With r5sgect to the payment of and the right et 'receive delay rentals And royalties (including shut -in gas royalties), it is agreed that the termination of a life estate,
<br />Wim inincrall 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 pf 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 shall fso come into the possession V us! of it.
<br />8. Ic'ssce;'at its eiptiuni is hereby given the right and power to pool or combine the land covered h this lease, or any portiot! thereof. or 'forma(ions therepnderr, as to oil
<br />and gps, sir either of glom, either before or after production, with any other land, lease or leases when in Lessee's judgment it is necessary or advisable to do so in ordei to
<br />pioperig develop or operate said pre•mist•s, and irrt•spectiv'e u( whether authority similar to this exists with respect to such other land, lease or leases, such poolini to be into
<br />a wen unit or units not exceeding forty (40) acres, plus an acreage tolerance of teen per cent (10%) of forty (40) acres. for oil, and nut 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 gat, except that larger units may be created to conform to any
<br />spacing to well unit pattern that may ,b-k presenbed by govemmental authorities hav(ng jurisdiction. The pooling in one a more instances shall not exhaust the rights of
<br />the U-ssee hereunJei to 'pool' this lean or portions' thereof, or formations thereunder, into other units. Lt•ssre shall execute in wr;1 inx and- place of record' ail instrument
<br />I initryme)ts identifying, cold desert'j ing the pooled acreage. Production,, drilling ox reworking operations anywhere on a unit which yic udcs a nr a part of this lease shall
<br />tie treated 'As irit were Proobnctitur. elrillinR o{ reworking operations under this least. In lien of the royalties (excepting shut -in guy royalties elsewhere herein specified.
<br />Le•s,or shalt seer" }ve, frbm' 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 />bears to 41i! 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 />terunmtt(gR tioly'sl; Itoty "i, stntroe4isR or instruments identifying and describing the unitized area contain provisions for termination upon certain contingencies. 11
<br />1. if irlin}} ((p� III a t *oil ,o "r gal on said land, or on acreage pooled therewith, lessee should drill a dry hole or hold thereon, or if after discovery of oil or gat produc-
<br />tigti t creltlf- , 4,(I vasE, fix any cause; this lease shall not terminate if lessee commences additional drilling or reworkint operations within sixty (80) days thereafter,
<br />`il it J.f sys't)tI tri ?b it pdmifry tern) commences or resumes the payment or tender of rental on or before the rental-p,Aying date next ensuing after the expiration of three
<br />f 31 fiptillrf If in r! al if repletion of a dry hole or cessation of production. If at the expir itiop of. the primary ,term oil�oi Rai iii' nut being produced on said land, a
<br />- on.".tc1�.•'IQII rooted tits e i; iSyt lesser is then engaged in drilling or reworking operations thereon, -this lease shall remain in effect so long as operations are pmseruted,
<br />eiflY'f -gut' Lt}Ir tstirb. 9,,,lY'Ar y,nw other well thereafter commenced, with no cessation of more than sixty (60) consecutive days, and if they result in the production of oil
<br />n( if%. ls4rt. fj f .011 rciryun ins effect so long thereafter as such production continues. ..,. y -• ,
<br />tell jlAge.4 in the above-described land than the entire and undivided fee simple estate therein, then there yalties qnd rentals herein provideb shalt
<br />i eK Pldc '(h(- It}uS, e1n1 m; Propdrtion which his interest bean to the whole and undivided fee. Any interest in the production front the lands herein described to which the ,
<br />ale (st rf e5sof may o{yu�yfc shall he deducted from the royalty herein resew; d. � 'V ; Y„
<br />�$ ,i s3r� �tfi jl vii ° tt use, free of cost, gas; oil and water produce4 oft, said land for lessee`, operation thereon, except water from the wells of lessor
<br />}41 i n 1�4•t �y 1jSarir
<br />,�qJ v JS}ygl �vtl17.e: ssb shall hurt' lessee's . -i pe lines below plow depth. 1.4.'earcr a
<br />than 200 feet to, they hourse or barn now on said premises without written conseO pf,Iessor.
<br />Le•sV0, iii! toll +tlm
<br />atngis caused by lessee's n?rerations to growing crops -on Said innd. $ ,
<br />L t'ss},e6shall hi(•it thi!eLrig�t at any time to remove yll machinery and ,fixtures placed on said premises, including the right to draw and remove casing,
<br />if I& estate orf.cithit party hereto is assigned =and the privilege of assigning in whole or in part is expressly allowed -the covenants hereof shall extend to their heirs,
<br />extruton, administruhor's, successors or ass* its, but no change in the ownership of the land, or Assignments oil rental or royalties shall be bindin�s on the lessee until after
<br />the lvsste has been furnished witb certifie copies of muniments of title deraigning title from lessor; and it i hereby agreed that in the event this lease shall be assiytyd
<br />as to appart pie s to parts of the above described lands and the assignee or assigneel oil such part or parts s�all fail or make default in the pit cereal oil the pmportfonV
<br />fart of t.0 rents due from him or them, such default shall tint operate to defeat or affect this lease in so far s it covers s part or parts if said lands upon which the said
<br />lessee or any assignee thereof shalhmake due Payment of said rental. in case lessee assigns this lease, in whole or in part, lesser s •dl be relieved oil all obligations with,
<br />n•syx•ct to the' assigned portion, or portions arising subsequent to the date of assignment. In t)ie event of death of any person entitled to rentals hereunder, lessee may pi�y
<br />or tender such' rentals fo the credit of the deceased or the estate of the deceased until such time as lessee is furnished with proper evidencr of the appointment and qquali-
<br />ficat(on of an executor or administrator of the estate, or if there be nonte, then rums lessee is furnished with evidence satisfactory . to it as to the heir, or devisees of the
<br />deceased. if at an" time two or more persons , if entitled to participittp in tltf rental Paxahle, hereunder. Lessee logy Pay or tender said rental joint, to such persona or to
<br />their joint credit in- the depository named hereint or, at Lessees election, t e proportionate part of said rentals to 'which each participant is entitled may be paid or ten-
<br />dered to him separately or to his separate crecrit in said depository, and payment or tender to any participant of his portion of the rentals hereunder shall maintain this
<br />leAse as to 'such participant.
<br />It. Les'si•e'may, at'any time, and from time to time, cxeeute and deliver to Lessor or place of record a release N rcleascy coverinit either a full interest or an undivided
<br />In relit in all or anv part of the lensed premises or in un) one or more zones, formations or depths. underI -ins all or any part cif the leased ppremists and thereupon shall
<br />i,! relieved of all obligations thereafter to accrue with respect to the urea, zones, formations, depths or Ile interests covere by such recast. in the event oil a re-
<br />le;sr If this ]vase as to an 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 a part of the leased
<br />Premnke•i, ,theicafter, the delay rentals hereinabovp provided for shalt be reduced proportionately. -
<br />12. N%'hvn drilling;, production or other o(xrationi are delayed, interrupted or stopped by lack of, pater, labor. material, inability to obtain access to leased premiss fire,
<br />flood. war, rehellion; insuirvulh n, riot, strike, differences with workmen, failure or carriers to transport op famish facilities fox transportation of may product produced here-
<br />under, lack of available or satisfactory market, in Lessees opinion, for the oil or gas produced, or as a result of an order of any governmental agency, (including but not
<br />3-f9
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