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<br />~?oo~ 633 1555202
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<br />of SeeUtm._...__............ ~ ........... Township ......................'~................_...._.........._.............._.___... Aange.........._...,.......~.'.,.............,..:....~.............
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<br />Tn addltlen to the land above described. Lessor hereby grants, feasm and lets exclusively unto L,esxe to rite tame extent ps 1f apeel[icaily
<br />described herein all lands owned or claimed by Lessmr which arc adlaeent, mntlCttoua to or farm o part of the Innds above partJcularly described. In-
<br />eluding all all. gas, other hydrocarbons and all other minerals underffying lakes, elvers, streams, roads, easements and rlthis- f way,~•hfclt tsavcrse or
<br />adjoin any o[ sold lands. For rental Dayment purposes, the lend Included wl Win this lease shall be deemed to rontaln....... f a./.,~?~}.~9".• ................ .... acres,
<br />whether !t actually 4romprism more or fleas. fs,s~ ~~
<br />2. Sub{ect to the other provisions herein eon[alned, this (ease shah be for a term o ye s from this date leatied "primary term") and as Ipng
<br />Utercafter as of177, gas, other lgdroearbons. or other minerai Is produced from said land hereunder, or dr4111ng or reworking operotlans are conducted
<br />thereon.
<br />7. The royalUa to be paid by Lessee are: (a) on all, one-eighth of that produced and saved from Bald land, the same to he delivered at the
<br />wells, or to the eredlt o[ Leuor Into the pipe line to which the wells may be connected; Lessee may from time ea Ume purchase any roy9ally all In Its
<br />paueulon, paying the market price therefor prevalling for the field whore produced an Ute date of purchase; Ib) on gas, Including casinghead gas or
<br />other 1tYdmCarbon aubatance, produced from Bald land and mid or used off the premises ar !n the manufacture o[ Sasollne or other products tlterelrom,
<br />the market va]ue at the well of one-eighth o! the gas so sold or used, provided t)tat on gas mid at the wells the royalty shall be one-elgllth o! the amount
<br />realized from such sale; le) on all older tNnemis tnlned and marketed, one-tenth either !n kind or value at the well or mine, st Leasee'a elecllon, except
<br />that on sulfur the royalty shalt be lltty cents 150!1 Per ]ong ton. Levee shall have Tree use of o11, gu, coal, wood end water from said lend, except
<br />water from Leuoi s wells. !or alt open ono herctmder, and the royalty on all and gas shall be computed otter deduMing any so used. If a well capable
<br />of pmducln` gu In paying quantltles !s completed on the above dscctibrd lend and Is shut In, this lame shat] eontlnue (n effect for p period of one
<br />year from the date such well L shut In. Levee or any autgnee may thereatler, In the manner provided herein for the pa meat or tender of delay
<br />tennlr, pay or tender to Lesmr as royalty, on or before one year tram the date such wall is shut In, the sum a! 5100.011 per wet), and, It such payment or
<br />tender Is made, this lave shall continue In elSeet for a further period of one year. in like manner and upon Ilke payments or tenders annually, made on
<br />' or before each anniversary of Ute ahut•ln date o! aueh well, this lava shell continue In effect for sueceulve periods of twelve 1121 months each.
<br />~. It operation Sor drllling are not catnmenced on said land w herelnatler provided, on ar before one year from Utls date, the lame shall then
<br />terminate u b both parlfes, unless on or before stub anniversary dale Lessee shall pay or tender to Lessor or to the medlt of Lessor In ......................~..,......
<br />.........x. ~.s~....1'TSti~.naZ .............._..........eank ot............~T.Bele~T..._Colorado.............._..._._._.........
<br />~ .. (whleh bank and Its successors are Leamr s agent
<br />and shall conllnue as the depository for all rcnta4 payable hereunder regardless o! changm !n ownership o! old land or the rentals either by eonveyanee
<br />p (y ) OIr~' l`.i0U511'D ~ IQJr•TD F'~ $'
<br />or by the death orOlnca act of Lesmr the sum af ..............!.i......._..............E....:..............~..........F.....:~r........~.e~...~G..a,4f I.~............,._~.........._......~..
<br /> Dollars
<br />Is .,..1_J-2 ~i~, :.~:./, , ), (herein rolled rental), which shell cover the prlvllege of deferring commencement of operation for drllilnC for a period of
<br />twelve 112) months. In like manner and upon Ilke pa manta or leaden annually the rnmmeneement of operallons for drllling may ba further deferred
<br />!or sueeeu ve periods at twelve (12) months each during the primary tarn. The pa meat or tender o[ rental hareln referred to may be made frt currency.
<br />dealt or cheek at the option of the Lessee; end the deposlting of such currency, draft or cheek In any post office, properly addressed to ll)c Lessor. or said
<br />bank, an or before the rental psying date. shall be deemed payment as herein provided. IL such bank (or any successor bank) chould fni4 liquidat2 ar be
<br />succeeded by another bank, or tar any reamn fall or refuse to accept rental. Lmsee shall not he held 1n default for lollvre to make:ucit•payment or tender
<br />o! rental anti! thirty 170! days glter Leuor shat! deliver to Lessee a proper retvrdable InatrumenL naming another book as agent to receive aueh pay-
<br />mrnta or lenders. The down cash paymeat Is eonslderatlon tar this lease aeeording to IL terms and shall not be allocated sa mere rental fo5 pl period.
<br />Lessee ma at any time execute and deliver to Leuor or to the depository above named or place o! record a release or releases covering'agY IxrMun or
<br />portions o! the above desertbed ppromlam and thereby aunender this (case as to such porUan or portions and be relieved o! 01l obligations as la ihr
<br />^ereage surrendered. and thereafter the rentals payable hereunder shall he reduced In the proportion liter the acreage covered hereby is roduced b>• sold
<br />rctwse or releases.
<br />I! Lasses shall, on or before any rental date, make a bona [Ida attempt to pay or depoall rental to p Lessor entitled thereto under this Jense
<br />aernrd)np to Lessee's retrords or to a Leuor who, prior to such attempted payment or depoall, has HHlvan Levee notice, in ocrordanoe wlllt the terms o[
<br />this lease herclnafter set forth, of his right to receive renml, and It such payment or deppoossiit shall be erroneous ht any regard (whether delwslled In the
<br />wmnp deposlloty paid to Demos other than the parties entitled thereto as shown by Lessec'a records. In an Incorrect mnaunt, or utherwlsel. Lessee
<br />shall be uncondlllonally obligated b pay to such Leamr the rents] properly payable for the rental period Involved, hu( this base shall be maintslnad In
<br />the ume manner as It such erroneous rental pa mans or deposit had been properly made. provided that the erroneous rental poymOnl or dapaslt be cor-
<br />rected within 70 days after reeelpt by Lessee of written notice from each Lessor o[ such error aecoRspanled by any tlocumenes and other evidence naees-
<br />eary to enable Levee to make proper paymeaL
<br />s. Should any well drilled on the above described land durlnC the Drtmary term before production Is oblalnad be a dry hate, or should production
<br />be obtained during the prlma~ term and thereatler cease. then and In either event I[ opera! ons for drllling an additional well are not commenced ur
<br />operations for rcworkmg an of well era not pursued on sold land on or before the first rental psying dale next sueceedfng the cessation of production
<br />ar drllling or reworking on said well or wells. then this Icaae shall terminate unless Lmsee, on or before said dale, shall resume the paymettl of rentals.
<br />UDon resump~lan o[-the payment of rentalf. Section ~ govarning the payment of rentals, shall eantlnue In lotto lust as (hough tharc had been no inter-
<br />ruption In the rental ppayments. If during the last yyear of the primary term and prior to the discovery of all, gas, or other hydrocarbons an sold land
<br />Lessee should drill a d Mle thereon, or if after dlsrnvery of ol{, gas, or other lrydroearhons helarc or duringg the Iwt year of the primary term file
<br />roduetlon thereof should cease during the last year of sold term from any cause, no rental payment or opernt7ons are necessary In order to keep ihr
<br />Pease In force during the remainder of the primary term. If, a[ the explmllon o! the prlmu:y term. Lresee Is eonduetlnC operpttans (or drllling a new
<br />well or reworking an old well. this Ieue nevertheless shall cors[Inue In [once as long m aueh drllling ter reworking operattans continue. or If. attar file
<br />explrptlon a! Ute primarryy term. prodttetion on this lease shall cease, this (ease nevarlheleas shall continue In force II drllling or reworking aDVr•atlons
<br />are commenced within sixty IlIO) days alter such cesmtlon of produetlon; if production la restored or additional produetlon la dlseovercd ns a result of
<br />any such drllling or reworkln¢ operations, conducted without cassatlon o! more than sixty 180) days, This lasso shall conllnue as lung therr:t(ter ua all,
<br />gu, other hydracarbom or other minerai is produced and es long as additional drllling or reworking aperationa are had wltltaut cessation n[ such drlll-
<br />mC or reworking operallone !or more then sixty (801 consecutive days,
<br />8. Lesser, at Its Dorton, la hereby given the right pad power to pool ar rombino the land covered by this tense, or any panlnn thcrtvtL ns 1,. , it
<br />and t1,,aas. or either of Them, with any other land, lease or lasses whmt In Lessee's Judgment it is neeeasory or advlwbla lu du so In order to Uwperly
<br />develop and oprrate sold premlxa, such pooling le be into a well unit or units nut exceeding forty 140) acres, plus an acreage tolerance u[ ten ter real
<br />t 10;:1 at Tartyy 140) sates. [or oil, and not exceeding six hundt ed and [arty 16401 acres, plus an acres@@e tolerance o[ ten per ten( I ID•;; 1 0l six hundred
<br />and fort r6401 attet. for {{a•, exe~ppL shpt tar er units ma be created to eonfprm fo an spacing or well volt pattern (hat may be prescribed by (tavent-
<br />mentai authorttfm hav(ng )urlsdlelfon. L.esseegmay pool or combina acrenga covered by this (ease, or any portum thereof, as aisove yrovlded, os to all m~ gas
<br />in any one or more stela. and uMss m formed need not conform In siu or area w{th the unit or units inly whleh the lease Is pooled or camulnad as to
<br />any other stratum or steals, and all units need not conform ns to area with gas units. The poallnp In one or more Instances shall not exltausl lire rights
<br />o! the L,eseae hereunder to pool this teau ar porllans thereof into outer volts. Lessee shall execute In welting and place of retard an instrument or fnstrn•
<br />meals IdentlLylftg and decerlbin the pooled acreage. The entire eeraage so pooled Into a volt shall he treated for all purposes. except file payment n!
<br />royalties, ai I1 It were Tneludad ~n thlc lease, and drllling or reworkinC operations thereon or production of all or gas Iherefrorn, or tits comlrletlon tftereon
<br />o! a well as a shut-in gas well, shall he eonsldared !or all purposes, except the payment o[ royallim, ae it such operallanc were on as such pruduMlen
<br />ware from or such r:ompleUon :vote an Ute land covered by this taste. whether or not the well or wells be Ixoted on ihr premises covered by this (case.
<br />In Ilea o! the royalties elsewhere herein specllled. Lessor shall receive from a unit so formed only such portion of the royally stipulated herein as the
<br />amount o[ his"aerage placed In the unit er his myal~y lnterml therein bears to the total aereaga sa pooled In ate particular unit lnva]vea. Should any wet
<br />as originally ercated hereunder•q)ntaln Less than ilia maximum number qt acres hereinabova apeclfled. then Lessee mar al pay time tlsereafter, whether be-
<br />fore or oiler produetlon Is obtained on She unit, enlprge such unit by adding pddltlanal acreage thereto, but the enlarged unit shall In no event exceed
<br />the aereaZee content herclnabove-speeltled. In the event an existing veil la so enlarged, Lessee shall execute and place of rceord a au plementnl daelnrp.
<br />flan of unlllr~lian Idevtllying slid deserlbing the land added to the exlstfnL unit; provided, that If such avpplemental declaration a[ unltiratlan is not
<br />tiled until after produetlon k oblalnad on the unit as originally created, then and In such event the supplemental ddeelarallon of unlllrarlon shall not
<br />become e[leetlve until the lint day o[ the calendar month nest followln6 the 1111ng thereof. In the absence o! produetlon Lesue may tenninatr any
<br />unltlud area by [Iling'af retxtrd pollee of terminallan.
<br />7. Lewes elm shgll- love the tight to unitize. OeoL ar combine ail or any part of the above described lands with other lands In the same general
<br />area by entering into a eooperatlve or unit plan of development or oprratlan approved by any govemmentol aulhorlly and, from liens to little. wlllt
<br />Ilke approve[, to modify. ehaoge or terminate any such pion or agreement and. In such event, the terms, condltlons. and pravlalaru of this lease shall be
<br />deemed rswdtflad lq Conform b the terms. condltlons, and provlefons of such approved cooperative or veil plan o[ development or operallan and. pnr-
<br />lleuMrly, all drtllln` and development eequlremenu of Ih)s lease, exprasa or Imptlad, shall be sallsllad by eompllanee with life drllling and devrlopntent
<br />requlretnenu o[ we plan or agreement. and this lease shalt not terminate or expire during the 11(e o! such plan or narerntent. In the avant amt u d
<br />above dmeNbed (ands or any part Ihereo(. shat( hercalter be operated under any such cooperative or unit ~ion o! development or operation whereby
<br />the produetlon therefrom la allocated to dlttarent Isorlfens of the land Covered by said ylan. then the produetlon plltxated to any pa rtreular tract of land
<br />shall. for the purrppoossee o! eomputing the royalties to be Dald hereunder to Lessor, be re8arded as having been produced from file pnrtleuler tract of land
<br />to whleh It is allocated and not to any other tract of [and; and Ihr royally payments to be made hereunder la Lxssbr shalt be bated upon ~rodurUpn
<br />only as m allocated. Lesmr shall formallyy express Les.ar'c cenxnt to any eooperatlve er unit plan of development or operallun adopted by sane and
<br />approved by any governmental agency by executing the mnro upaa requect of Lessee.
<br />g. Levee shall have the right at any time without Lrsmr's consent to surrender all or any portion o! the teaud premises and be relieved of
<br />all obligation as to the acreage surrendered. I-eases shat) have the rleitt of any flare during or alter the explratloh of ehls Ienm to remove n11 properly
<br />and fixtures plated by Lessee on said land. Including the right to draw and remove all easing, \L'hen repulreJ by Lessor. Lessee wll! bury all ppipe
<br />lines below ordinary plow depth. and no well shall ba dr111ed within two hundred 121101 feel o! pay residence or barn now on said l:uttl wltttuut
<br />Lessor's eonsenl. The Lessee agrees to promptly pay to the owner thermt any damages to crops. ar Improvemanls, euusnd by or resultinC Ienm any
<br />operations of Levee. ,
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