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~. <br />OIL AND GAS LEASE <br />1J flo•remoer ... IY. 90...._.... <br />AL REESIE~T Slade and en«reJ into the ................. ...... doe af... .. <br />by and lXlNeen ......_.._Geor~e Mike .Young _and Shirley.L. You.nga .hus:oand _ar.d_wife, I <br />and Georg ~IiI fou Trust <br />ef802~ Co. Rd 39r Hancos, Colorado 61J^d <br />..... ... posy of the !m pan, he«inaflcr called Insor I hnhc0 ' <br />one or morel and .Stephen. H.... Kinney, .207 Iio..Orchard, .~arni.ngtoD,. 4. M....87L07, party of the <br />second part, hereimfter called lessee. <br />\\IT]'E55 ETll, Tha the smd lessor, for and in rrnudmtien of Tu0 Hundred (8200.00) UOI LARS, <br />rash m hand paid, rcctipt of N h,ch is hneby act now kJgctl and of tlrt cosawnl s and ag«ernrms hueinaftrr conumN on she <br />pa rl of Ihr kssee to be ;aid, Aept anJ performed, has gra tied. demised.lnsed and In and bs these presents dons Franl. demnc, <br />Irate and In unto the said lessee. fonhe sole and ooh purpac of mining and operuing for oil and gas.anJ lasing pipe hoes. and <br />bwlding mots, poNer susmm anJ Vrucmn{Ihcrcun to pruducr.sa.r and sake care of hid pmduas, all thin ttrumsocs of I <br />land siwate in th< Ccunu of ...... ... )10 n,e ZUna ........ .. .. ... ... .................. ....... .. <br />Asa pf .. .. Colorado ........, do<nbcd as follow, la wit <br />,111 oil, gas, C02, hydrocartons,.min=rals.,..mineral .suhS Lance S.e ........ ..........._._ <br />............_^ineral.. aggregates lrino..?~,...~?,. R'...under ................... ..... ........................ ~.. ........... ! <br />in T)S~:a.._R1LY7,.._;CA2}1a i ...................................... .............. <br />.............................................. <br />......................... <br />Section 1: LaL L.(NrlxMAl) .. ............. ................. .. ...._.. ! <br />., ....... ..............._Secto~ 2:...Lot...1...~NGttJ_Ea)i..SE~tIE~:...lc}SSA.................. .......... <br />of Section'.._1.._&._~......Tounship....._)5 ~.........Range....l~~'~........._anJ containing....20. tie L..........acres. mate or less. ! <br />huagreed tha this lcueshall remain in tomefora «:mof .lO. .... yeanfram the dae.and as lpng lhercaher as oil <br />and gas, or usher pf Ihrm. « produced from saitl land by the lesser. II <br />In coniidention of the prtmisei the said levee co,cnanb and agaes: I <br />I. To Jclis er so the creJn o! the lessor, Lee of test, in the pipe liar w uh¢h the lout our connns hu udls, the i <br />equa l......_ope .fieth .....part of all oil produnJ and sareJ from the IoseJ pr-.moo, as rut aln'er, xl tare's <br />decuon. sp pay she !esspr~or such ra)alq the mach( prig prevailing the daythe oil a ren imo the pipe line. or in stooge ants. <br />~ one eioh`h <br />To par the levor as rotate' ......... ........._ o._.° .........ol all other minaab and hydrocatbans Nhich the Inuc products '! <br />and toter from ».d lands. r <br />~ To pay for thrg~s tram each Nell found upon the said pamno, uhich shall ptodua pain marketable grammes. <br />a royalq o! .. .._1~3 . ...... .......... pnrem of the nn proceeds daisedlrom the sale of such gas. or of the psolinr <br />Ihas inch gas may be coot coed into and mar tend oll the premiso. <br />If no Nell be commenced on said land on nr before t h; 1J..... day of ................!lo V ..._......... ....19.91...., <br />Ihis lease shall «rminate as to bmh pamo, unless the lesser on or bdore shat dale shall pal ar lender to she letsa4 or so the <br />lessor( credit to the ......................................................... ..... ...... Rank of .. .. .. ........._.........or <br />its successor Nhah shall continue as she drposilon' agadless of changes m she ou nership of aid land, she win of <br />.._TWenL~ (j.20.O0 ) ........... ...................DOLL:S RS, uh¢h shall operate as a moral and toter the pest stoke of defe«mg I <br />she commencement afa well for..... ..12. ..monthsfrom saiddate.In like manner and upon like pa!'ment or lenders the <br />commencement ofa cell map befurther Oelerred loralAr period of the same number of momhtsuccevisaly. Anddis under <br />«pod and agreed Ihas the comideraton Rrss rcumd hrrcin. the down payment, cows nor only the psis doges granted to the <br />dam when said f r« moral is payable a afpasaid, but also the lessee i option of exmndmg shat period aforesaid, a nd an)' and all <br />ocher rights confernd. <br />Should the f tit well drilled on the whore drenbrd Ix nd be a dry hole, then and in Ihas et rot, l I a saond u ell is norom- <br />menced on raid land within suehe months from the expiraian of the lag coma( penpd uh¢h «nlal has been paid, Ihis Ina <br />f hall armmase as to both parties. unless t he lessee on or befom she expiration of said tuelse monhs shall «sume she pa} mcns <br />of renuls in she sameampunund in she same manner as hernnbefore prmiJed. And it is screed thin upon the rnumpnon of <br />the pasmem olrenuls.uabosa prodJed that the last prcctdin8 paaguph linepf.gmcrning Dse pa)mem of amaR and the <br />eifecs thueol, shall continue in forte just as Ihoueh there had been no merruption in she moral paymrnu. <br />If saitl lcror oNnta lessimerestm the abotrdnatb:d hod than lheemire and unditidrd frcwmpk oulx lhvein.shen i <br />the rpyaltics and rcauls herein presided shall be paid the l;ssoronly in the proportion which hisinleasl bean to lh;Nholcand ' <br />undrcided fee. <br />Lnue shall hueshe ngm so u«,lrce ofcost.gas, ail and wua produccJ on aid hnJ far in operation lheron.euept <br />uatrr from udls of lessor. <br />N hen «yunad by Insor, lessee shall bun its pipe lints blow plow depth. ~, <br />\o wdl shall be Drilled never than.DU fen io the house or barn now pn said premtsa,Nhuhom she xuucn mnsem of she <br />lesmr. <br />Lessee shall par far damages caused by to operations to growing crops on said land. <br />Lesue shall hale she right al any'timem«mow all machinep and liaturrs placed on raid premises,indudingshe sighno ' <br />draw and remore attng. I <br />1l the esua of eishu pan)'heraoit asvgneJ.and sh: pririlege ofauigning in uholc or in pars is expressly aaowed-she ' <br />cmenanu hereof shall eaund so their heirs. execmurs,admmi«raon. suaeston. or assigns.bw tip change in the ox'nmhip <br />of she land or aafignmens of renuls or ro)'allia shall be hording on the Icuee omit after me Icssce ha bcrn furnished uilh a <br />wrinen lransler or aaignmem ara true copy lhveof;and it is hereby agred shat in the nom Ihis lease shall br assgned as loo <br />earl or as so parts of she above described lands and the avien« or aswgm of such pars or pans shall fail to male delauh in she <br />payment pfth<propanionne pars of she rents due from him orshem.such delauh shall nos eperacsodcfnt oraffcn lhn lose ', <br />is so far as it coserta pa«or pare of said lands upon uhich the said (tree or any aswgnre thereof shall make due payment of <br />sad renal. ' <br />Lnsor hereby uarmnu a nd agrees to Jcfcnd Ihr title so she lands hrrcin dnnihrd, and pgrtrs tha t nr Icssce shall ha. e <br />the right a ana'time to «de<m for Ieror, by pas mcns, an) mmtpagcs, uses or other I¢ns on the whose dneribed lands, w the <br />n ens of delauls of paymcm br lessor. and be subro¢ated m the rights of she holJen thereof. 1\'ar Clause f or Oil a rd Gas!.eate: <br />This lease shall nos be tnminaed, in Nhple or m parr. nor shall lessee be held liable in des moon, for fa dwe to con~ply umh <br />the exprer or implied cotenants heaol, if compluna thneu nh is pro'enteJ hy. or J such failu« isthc «suh af. any Fedeul or <br />Sum has, uccuw a mdos, ruler, or regubuom. If, a the enJ of I he penury ¢ t m h<rtof such torn bas not bcrn c.arnJeJ by <br />pmtluaton or tlnlbng as in shin lease pros ideJ, and taste, by rtawn of a ny abot a «rimd nines, is unable m drill a u dl on Ice <br />Icamd p«mises for oil or gas. the primaq' arm and she rnlal protinon heeof shall be uvrndcd awomminlly twin ynrso <br />car umJ the Grst a nnivarun' hereof uccurnng ninny 1901 or more days follow ink the amowl of inch delaying Dose During <br />any penotl that Icssce is ana ble m prod ace • nd /or mar4a any produns Irom the Insed p«mias by roson of any of the aboa <br />«nted eausn, shin Insr shall moron in full force ana eflea. <br />In Testimony whereof u'e Sign. this the.._ ... ............../..3............ .. J.y ~f..............._,':~^.[~~............ ..... 19 :P" <br />Nimesc ///~ T] ~/~ • s7 <br />............................_................................................................. l'• p -I JILL/ .. L.. ~i.eG+?.~T...ISEAy <br />..................................................... .......... ................ .... (..:y.... (,~~~ ~... .. ...(SEAL) <br />00066 <br />\o. 9JI PNODUCCRS ag a..rtwu.eu....r faux mN...tn•...a.cpu:u_~suun arw-:c <br />