O-1956-503 - Laserfiche WebLink

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e e and includes, in addition to that above described, all land" if any contiguous or adJacent to or adjoin- ing the land. above described and. (a) owned or claimed by lessor by limitation, prescription, possession, reversion, or unrecorded instrument, or (b) as to which lessor has a preference right of acquisition; such lease to contain a provision authorizing the lessee to pool or unitize the rights covered by such lease in oil or gas on, in, or under the above-described land, with any other lands, leases, mineral estates, or parts thereof, to form a drilling or spacing unit or units for the exploration, d.evelopment, and. production of oil or gas, provided the drilling or spacing units shall not exceed the minimum. number of' acres upon which an oil or gas well may be ~ located in order to comply with the rules, regulations, or orders of' the Railroad. Commission of' Texas or any other regUlatory body, . . , state orf'ederal, having authority to control or regulate the spacing of such oil or gas wells. SECTION II. (a) That the lease on said tract is to be sold at a public auction to be held in the City of' La Porte, Texas, at the City Hall on the 11th day of' . 1956, at 4:30 o'clock Auoust L.m., by the City Commission of La Porte, Texas. (b) That'the lease will be awarded. to the highest and best bidder submitting a bid therefor, provided that the City Com- mission reserves the right to reject, in its discretion, all bids submitted if' none of' them represent the f'air value of' such lease. (c) That the royalty to be reserved in said lease shall be at least one-eighth provided, however, that on production from a pooled unit only such proportion of the royalty prOVided for in such lease shall be due as the amount of lessor's acreage in the unit or,its royalty interest therein on an acreage basis bears to the total acreage contained, in the unit; and that the primary term -3-