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X-1084
<br />Cherry Creek BlocklnsnsDkutPllurtCdlnc
<br />wOplet,Rg lie OIL AND GAS LEASE --
<br />,0 CAD i GREEMENT sage and entered into a. zv? . ..:.. ....... ___ day of -_Ji�t,;xni ?:I`y --•-•-_ ^--- .._._______.. _ ._- .___.___- ----•- - ---- . _-- _-- .- " "_- __.--- _-- - -_ -_ . 19 ...��i-•--
<br />and r - - - W
<br />_Ra - ._._._- _...._.. __. -._. __._. _.
<br />._.-._....._......_......_.-•--•--_ _..__...._.__..- ..__--- _.____ -_ .-..-_-----..._.----_.-•---------------_-_._--_---
<br />• hoSe mailing address it._.`>i�zt».� -s�: n�Ka_._..._.. -- __..._.___. .. -__� hereinafter called
<br />,_o,nr (whether one or mote). ...... .... •_.......
<br />_. ..___- .- '_.- ......__.- ._- ___ -_. __- ..- --...._. _ ....... ...... .......--- - --••-- --..- .- ...... ---- -------------------
<br />T'4ij3Hy,!JK a �__.._._.._..--- .......-- -- --.._ _._._----- -.Is"cinafter calledUs,
<br />1 WITNESSETH: That the said lessor. for and is consideration d._. a�inQti _ ! • -a "� ^f 1 ..� _�...�._�._-. '.._ ._ �- ---- r_.7L._! . Dollars.
<br />a,h in hand paid. the rrcetpt of which is hereby aduwwiedge•d, and of the covenants and agreements hereinafter contained on part of lessee to be paid, kept and performed,
<br />Fns Cr4n4•4. ¢cmised. leased slid let and by Wiese prexnts does granrt, demise, lease and let utsto the said ]vsSee for the sole and only purpose of exploring by geophysical
<br />,nd other, mcthuds, mining and operating fear oil and gas, and W laying of pipe lines, and of building tails. puwer statiuns and structures thereon to produce, save and take
<br />ate of said products. all that certain tract of land situated in the County of. 5�.,�,5�- �.ikl�o.- .I.��s.l a-- �� ^�:ls!•1 d. ... ., _-._. , State u(...lr'te't'Cft >k : b.._._`- -_-_-- ..
<br />lescrilied as follows, to -wit:. s._- _Y� -Q -s_- sea -_�..- LH__:� ..lY.._._ . .............. _ ..._- _ .......
<br />- 's� ?Tlj .... -.- ,� : � . t�.l__.:...I�i_ - ..1 & -•!- - -- .- -- - \ �.
<br />- ......... ^-•--- i e�+. .- �+.�L'..r._.��._.�._�- _�._.4 _�_._.- .-- _.-- ------- --- - -'�' `!�,lrs- ..._.Icy.QeC.s .13...�t..�. �. ._�..1P.._.._. ....--- -- ------ ------
<br />- t�l
<br />-- -_ a ..�ecA26 - 12 - .1z_�. =*pt -.2 acres. im W/ - -
<br />Sac. -29 -12 " - -Z
<br />CC-. ........... __......._... ......... ...........- ...--- - - - - -- - _....- .__..---- • - - - -- _
<br />,f Section »- _- _- ____......__._ Town >hip- .._._____ -.._ v Range ....... __.__...- And coutaining -- _....._"_._...._-_-
<br />- � •ss.
<br />It is agreed that this lease shall remain in torus for a tarn of ..1 Q._. -_ . -___ Stars fruit, this date, and as lung thereafter As u0 or cat er either of than is•piDtf�a• m
<br />:.sod land, or from lands with which said land is pooled thercwntk by lessee.
<br />3. In eonsiderAtiusi of the premiss the vid lessee covenants and agrees:
<br />(i) To deliver to the credit of lessor, free of oust in the Pipe tie to which lessee MAY cvtunect his wells, the equal otse•eigiAll part of as oil PlAucrd and saved ram the
<br />!cased - premiss, or at the le•sseel option. may Pay to the kasue fur such une- eighth nnalty, the market price fur oA of hLe panda+ and Crasity pn:,Ading urn the day such oil
<br />ns run unto the pipe line or into storage tanks.
<br />sly) To PAY lessor for gas of whatsoever nature or kind produced and sold, or use -d off the premiss, or used IS the muuufacture of any products therefrom, one -cighth.
<br />at the liva rket price at the well for the girt sold, third off the prrmiscsi, or in the manufacture of prusluctt therefroq.
<br />(rely If a gas well capable of producing tai only and located on the above dcsnbed lAno us ce lands with which the above drscnbed lands or a portion thereof are
<br />pooled or unitized is. at any time, shut in and no ras thLiefrurn is sold or used off of the 4w%o described lands. or in the manufacture of natural gasoline or other products,
<br />nrvertbrb,ss such shut -its Car w'ra shall. unekr alt the pruvisnuns of this lease, be deenrd to a well on the above described lands producing gas in paying quantities and this
<br />lease shall continue in forts during as the time us times while such wed is So shut in. whether be(ure or after the espirativa of the Primary term. Lessee shall use reasonable
<br />dWycnce to market the Cat cay able of being produced from any such shut -in gas well, but shall be under no obli }11aation to mark,* such a" under terms, conditions or eGeum-
<br />rtancp whirls, in terse! juagrocaL - Aercix-A is good raids, are nut for the lest interests of )nth Lessor and Lessee.
<br />'(� C jerrn "stated date' as used in this paragraph ,hall mean any rental paying date of this lease or any subsrgtunt anni%crsaw thereof if there be a irntal paying date,
<br />but rf no rental paying date is spr•uficd in this Icase, then '*stated date" hall mean any :unsiecrsary date of this le.ue. If on any such stated date there be on the above de-
<br />Scribed or on lands with which the above described lands or portion thereof are pooled or untied, one or more such gas wellil }apable d nklucing gas only, and no
<br />gas has been Sold or so used from any of such gas wells at any time during the twelve.iuuths ppsariod ending wills such staked date, Lessee shalt, before the expiration of
<br />sixty (60) days after such stated date. Pay or tender to rack owner of the right to rcceive ru)Ally on the Cas ptoduced from any pier of the ahnve described lands covered
<br />by this lean urn such stated date at each such owiher i address AS last luhnwn to Unw. us to the credit of each such owner in the d9-positury bank nansd therein. in the man-
<br />ner pfpyided herein for paync•ut of delay rentals, a shut -in Cos reyalty hr such Period, which shut -in g&t myalty shall be delcrmineA as follows:
<br />The total asnount of shut -in gas ru)alty QA)Ablo to as such owners Shan be determined by nhultiplying Our Dollar 11l.00) by the tul,d number of acres of land covered
<br />by .aid tease on such toted date. and rater such uwtwr shad fcefve that art thereof whuh is in the pn.purtius that ha royalty .c +rage inleres is said land bears to the
<br />total pymber of act" of lend evvered bye such base no such stated date: rrruvidel, hUwexer. the if use such stated date this base is being maintaiard in force and effect
<br />uthrrwfy than by rt'awn of Aur such shut -in cos weer er sbut -in K.o wells. Unce had not be obliged to pay or tender any such sum of rrwuw-Y, as shut -ice gas royalty.
<br />The language °a cas wed caprltIn of producing gas unle.- As used in this Section S(c) Shaer mean and include a well capable of producing natural Cas only or a well
<br />capable of producing natural gas aod.ur condensate, or distillate, or a weer classified as a CAt well by any Kovemnscntal authority or any wed in which the gas-oil ratio
<br />is so high that it cuvenhawntal authority will nut permit liquid b)droarhons to Ise Produerd therefrom unless the sans is mrrke•ted,
<br />4. ,If npe•rations fur the (lrillin� of & weer fur CIA ur t-v At rust eemnme•nex-d or if there is no CIA or gas hieing piodu «d on Said land or on acreage pooled therewith as
<br />hereinafter provided on or b e ure ox year from the d.ete thereof. this bra» Shaer terminate as to bulls parties, unless the lessee an or before that date shall pay or tender
<br />to the lessor or to the )crux: credit in the eS--tQvA �8llll Oi L'8�r0 - flank at..-- t- _sree��$.�,lS�.......... _..............
<br />or its successors, which shall continue as the Arpositury fur rental rezardlcso of changes in the owncnhip of said land, the suits of _ ... ................. ... ........... ............................
<br />Two, hezndred r orty - - - = - ._._._.__ - ....-- -..... -.-..-...-.-.----. .- _..- .._.- ..- ...- ._..- ._.
<br />..._....- -- _ _....._ _ .. ...... .............- - .- ..._.- .._- - --
<br />(g_24-0'�.-- •.-- _..._.._ -.. ... ) which Shan Operate ns A rental and cover the privil•-ae of deferring the comruenetment of uperAtions for drilling of a well for twelve
<br />mouths from said date. In like manner and upon like Payments us lenders the conumc-nrx Ilk-III •of npk•rAtiuns fur drilling of a well may be further deferred for like periods
<br />of lM same number of months successively. Aa pa)racuts or tenders may be made by check w draft of lessee or any assignee )luretif, mailed or drllsrred on or before the
<br />rental PA)nnfl date. It is uneb.•rstoud and agreed that (he Cgyllsidesatun first recited herein, the dawn pA'nx'nht calcrs nut only the pd%fl, -ge granted to the dale when said
<br />first rental is payable w aforrsard, but also the lessees ri , of extending that period AS Aforesaid, and Any and all other rights cunferted. Should the depository batik
<br />hcrt•gf4•r flue without a successor, lessee or in assigns M7 drpo)it rentals or loyalties in any National bards located in the sansr county witb the first named bank, due
<br />notice of such deposit to be mailed to lessor at last known address.
<br />S. With respect to the payment of and the right to imvl%e delay rentaU and ro a lties,(ineluding shut -in gas royalties), it is agreed that the trratination of a life estate,
<br />terns mineral interest or other precrdent estate whereby the Lessor shag come in� possession or uS& of an interest in said land shall, subject to all the provisions of this
<br />lease. becunw c•fft•clive from and after the date when such Lessor shall hate fnrnirhrd satisfactory evidence to Ia•ske showing the termination of such life estate, (,•rm
<br />mineral interest ur other precedent estate, but fur as other purtspss this (rase shall cover such interest as and %lien the Leswr s1r11 so Conn into the possession or used it.
<br />6. 1,ence, at its option. is hereby gi%en the right and power to at combine the land covered by this lease, or any portion thereof, or formations thereunder, as to oil
<br />and gas, or tithes of them. either before us after production. with any other land, lease or bass when in I.rssc*i judgmekd it is nrce•ssary or advi >able to do�,to in older to
<br />property develop or operate said premises, and irrespective of whether authority similar to this exists with respect to such other land, erase or lrnss such pourtn�( to be into
<br />a wep unit or units not v>cveding forty (40) acres. Plus as acreage tulewnee of ten per cent (10%) of forty (40) acres, for oil, and nut rxcrrdinR sin hundred and forty
<br />(040) acre's, plus an acreage tolerance d ten per cent (10%) of six hundred and forty (640) acres, for cases except that larger units may be crestrd to confurrrs to any
<br />spacing or well unit pattern that may be prescrib>rd by gavcnutSrntal authorities having jurisdiction. 'Ilw pooling in Our or more instances shall not exhaust the rights of
<br />the La•SSVe hi•rcundrr to pool this 1"aie or portions thereof; set formations thereunder, into otlur uuitx- Iessee Shall execute in writing and Platt of record an instrument
<br />or instruments identifying and descnbinr the pooled acreage. Production. dnUinR or reworking operations :tnywhe•n, on a unit which includes all or a part of this lease shall
<br />be treated As if it we're productions drilling or reworking operations under this lease. In lien of the rnyallias (excepting shut-in gas royalties) elsewhere herein specified.
<br />Lessor sha]l,rr ire, f{om 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 />bean to the to ace ale so- pooled in lM particular unit involved. In the absence of production Lessee may terminate any unitised area by filing of record n o of
<br />t.rmtna(iop un]W' th nhrlr merit or instruments identifying and describing lM unitized arc& contain provisions for termination upon certain contingencies. It7e
<br />7. If y isLf lt4srn� rji(of Ioil or•Ras on said land, or on acreage pooled therewith. lessee should drill a dry hole or hobs thereon, or if after discovery of oil or gas produo-
<br />linn t rraffrr's exclaim fyr any cause, this lease shall nail terminate d lessee commences additional sin_Il;ng or rew'orkin� Ope:retiins within sixty (60) days thereafter,
<br />wifj(tin �I RRrlmary term) commences or resumes the payment or tender of rental on fir before else rental - paying ate next rnsuinR after the expiration of three
<br />(3 }npn frur)t clgid, of- pntplrtfpa of a dry hole or cessation of production. It at the expiration d th! primary term oA m gat is nut bring produced on said land, or
<br />on scree¢ •�geiled`�h`IhCr wrt)e gt )csso�t is t}hrn engaged in dolling ar reworking nperalinns thereon, this lease shoe remain in rf(rct =,tong as operations are prosecuted.
<br />eit1� on Isle Same well c* adv gthef well thereafter commenced,' with no cessation of more than sixty (60) consecuthe days, and if they result in the Production of oil
<br />or, nY, .t}u,, -jr ie,tshy�,nmdirF'y`ljl� _fkrfcd so long tbereaflcr as such production continues. ��yy
<br />8. If . aief lhssub j`a%e t ;e!Sss Lgegj'est in. the above- descnbed {and than the entire and undivided fee simple estate therein, then the royalties and rentals herein provided sha'1T
<br />M'pa tFie ]r4S;�r ;en sn ttt�rnportiotl which his interest bears. to the whole and undlided fee, Any interest in the production from the lands herein described to which the
<br />interest of lessor Judy �mbyytt -shad .lie deducted from the royalty herein reserved.
<br />g.. Fzessser,# v -�}'a 3 '(A s, of c»ar, gas,, all spit waletf piQduci on iota land ear lessee *$ operotjon thereons except water from the wells of lessor.
<br />•
<br />'When requesXk,d.•bralcssor, lets,, $bad bury lessees pipe "lifnep below plow, depth,
<br />,,yo' won shall ba. -Sir r•d,nearci than 200 feet to the thous! or bare nova•on saill premises without written consent of lessor.
<br />Cesse'q shall, PAY . ay damages caused by lessees opeiatiblA to growing crOps -out said land. ,
<br />(Icssc! sLaa.)tavC „thR.Ji}hT1 At, any tune to remove µse1l,mac)rinery e and , fixtures plated on said premises, including the right to draw and remove casing.
<br />lf� IE,tdse teed, of titre Party hereto is assigned - and - the pdvslcj e of assixnind in whole or in part is expressly allowed -the covenants hereof shall extend to their heirs,
<br />cxe•�ukorsi adminf¢trator3, succgssns or assigns, but no chanK� in t}w ownership of the land, or assignments of” rental or royalties shall be binding on the lessee until after
<br />thsl lessee has been furnished with ceRired copies of muniments of silk designing title from lessor; and it is hereby agreed that in the event this lease shall he assigned
<br />as to k part ar ns to Sorb o� t}yC_afiove descn Ord lands and the assicnee ar assi)(ssees of such part or parts shall fad or make default in the payment of the proportionate
<br />part •of else ,rend dui from himit or )hem, such, default shall not Operate to defeat or affect this lease in so far as it coven A rt or parts of said lands upon which the said
<br />lessee or any assicnee thereof sisals make' duE paymemrt of said iental In case lessee assigns this tense,• in whole or in part.. lesser shall M relieved of all obligations with
<br />respect to the assecnrd portion or portions nrisinR subsequent tp We date - of aasignmer)t,In the event of Oath cif. l se
<br />an; person entitled to rentals hereunder, lessee may pity
<br />or tender such rentals In tM credit r# tM deceased or the estatE d the deceased unto suchh time ales is fume e with proper evidencr of the appoinuneut and quall-
<br />ficatioa of an executor or administrator of the estate ar if Were bm none, then unto lessee is furnished witb evidence satisfactory to it as to the heirs or devisees of the
<br />deceased. If nt mug lime two or more persons fie cntitied to participate in tM rental payable hereunder, Lessee may pay or tender said rental jointy to such persons or to
<br />tM•ir joint credit ma tM depository named herein: or, at Ixssee i election, tM 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 drpositorys and pigment or tender to any participant of his portion of the rentals hereunder shall maintain this
<br />I ease as to such participant.
<br />1t. Le•ssee may, at any tines, and from tires to timet_execele and deliver to Lessor or place of record a release or releaser coverin either a full interest or an undivided
<br />interest in all or any part of the leased premises or is any one or more zones, formations or depth& underl)•inR all or arty pact of the leased premises and thereupon shall
<br />be relie•vedi of ,ace, ohliggtiups, the cJsfter to accrtsa witL Frsp i to the ureM zones, formations, depths or undivided intAsts covered by such release. In the event of a re-
<br />Iease of this IZ.*' f tV -al) right, in only a pad•oi tsk area embraced in the leased premise!, or as to an undivided interest in all formations in all or A Part of the )eased
<br />PrrnnXsc�,:,tharcafter We delay rentals,hereinabove prgvideds for shall be reduced proportionately. IL When drillfn$j production or. other operations are delayed, interrupted or stopped by trick of water, labor material, inability to obtain access to leased premises, fire,
<br />1104., tit A& rehcltrod. rhsurrictiun., ride, strike diffemnoes with workmen. failure of carriers to transport or fumis facilities for lransportatton, of any product produced here -
<br />undtrtF lac1P of abailable,.oi• s:disfactory market. in Lessees opiniore fort the oil or gas produced. or as n result of as order of any governmental ngency, (including but not
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