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<br />4' . PRo'DU!:I!RS 8. REVISaD-TEXA8 (RRVI.ED '.'8) PRINTED IN U. 8. A.
<br />
<br />CARClILL'&-HO....TON . ~-
<br />
<br />OIL, GAS AND MINERAL LEASE
<br />
<br />"EXHIBIT' A"
<br />
<br />AGREEMENT. Made and entered into th.. day of
<br />the City of La Porte. Texas~ acting herein through
<br />to authority ~ranted. him by its City Commission
<br />
<br />. 19 , by and between
<br />its Mayor, pursuant
<br />
<br />whose post office address i.
<br />
<br />, hereinafter called lessor
<br />
<br />(whether one or more), at'" .. . hereinafter called lessee:
<br />
<br />eITNESSETH: 1. Lessor, in consideration of t,.:: . ; nollars, receipt of which is hereby acknowl.edged,
<br />of the covenants and agreements of lessee hereinafter contaihed, does hereby grant, lease Oln!! let unto lessee the land covered herehy for the p)Jrp<lses and wIth the
<br />usive right of exploring, drilling, mining and operating for, ; producing and owning oil, gas, sulphur and all other minerals (whether or not sImIlar to those men-
<br />tIoned). together with the right to make surveys on said land, l8;y pipe Jines, establish and utilize facilities}or surfacl! or subsurface disposal of ~alt wat~r, construct
<br />roads and bridges, dig canals, build tanks, power stations, telephone lines, employee 'houses and other structures on saId land, necessary or us~ful In lessee s operations
<br />in exploring, drilling for, producing, treating, storing and transpOrting minerals produced from the land covered hereby or any other land adjacent thereto. The land
<br />
<br />covered here~y, herein called "said land", is located in the County of Harris State of Texas , and is described as follows: .
<br />
<br />...~.: .. .. ';;r..~~...'t"';--.:'''''.'''''':;.!'...'
<br />
<br />
<br />-, -;,~.., :~.~;~:>:!~~~~~;;~~: i:
<br />
<br />
<br />.-.. c!'"V-4r 'V~::.J. ~
<br />
<br />and includes, in addition to that above described, all land, if any, contiguous or adjacent to or adjoining the land above described and (a) owned or claimed by lessor
<br />by limitation, prescription, possession, reversion or unrecorded instrument or (b) as to which lessor has a preference right of acquisition. Lessor agrees to execute any
<br />supplemental instrument requested by lessee for a more complete or accurate description of said land. For the purpose of determining the amount of any bonus, delay
<br />
<br />-tal or other payment hereunder, said land shall he deemed to contai" ~OO Dcres, whether actually containing more or less, and the above recital of
<br />---:;-- '" ;!!!y tract sh,,1I be deemed to be the true acreage thereof. Lessor accepts the bonus and agrees to accept the delay rental as lump sum considerations for
<br />lease and all rights and options hereunder. ,
<br />
<br />....... 2. Unless sooner terminated or longer kept in force under other provisions hereof, this lease shan remain in force for a term of tJ.iG ye~ ff.om the date
<br />hereof, hereinafter called "primary term", and as long thereafter as operations, as hereinafter defined, are conducted upon said land with no cessation" for more
<br />than ninety (90) consecutive days. .
<br />
<br />3. Whenever used in this lease the word "operations" shall mean operations for and any of the following: drilling, testing, completing, reworking, recompleting,
<br />deepening, plugging back or repairing of a well in search for or in an endeavor to ohtain production of oil, gas, sulphur or other minerals, excavating a mine, pro-
<br />duction of oil, gas, sulphur or other mineral, whether or not in paying quantities.
<br />
<br />4. As royalty, lessee covenants and agrees:
<br />
<br />(a) To deliver to the credit of lessor. in the pipe line to which lessee may connect its wells, the equal one-eighth part of all oil produced and saved by lessee from
<br />said land, or from time to time, at the option of lessee, to pay lessor the average posted market price of such one. eighth part of such oil at the wells as of the day
<br />it is run to the pipe line or storage tanks, lessor's interest, in either case, to hear one-eighth of the cost of treating oil to render it marketable pipe line oiL
<br />
<br />(b) To pay lessor on gas and casinghead gas produced from said land (1) when sold by lessee, one-eighth of the amount realized by lessee, computed at the
<br />mouth of the well, or (2) when used by lessee off said land or in the manufacture of gasoline or other products, the market value, at the mouth of the well, of one.
<br />eighth of such gas and casinghead gas.
<br />
<br />~ 'fll ,a! lusu llU Mllir {f19lij ,r- 1-8 tll'll (??AI1 Fft"ft.!.) -- all slllr..... mlft...! Oft.! mD.It,,>A" IIF lItilln.! hi' 'A"AA tm6D.;.! ..... _
<br />
<br />(d) To pay lessor'on all other minerals mined and marketed or utilized by lessee from said land~~~inV~ vl?ue \\li'h\ w~IJ.rmin'~\1~P.
<br />election. '.' :
<br />
<br />, (e) If, at the expiration of the primary term or at any time or times thereafter, there is any well on said land or on lands with which said land or any portion
<br />thereof has been pooled, capable of producing oil or gas, and all such wells are shut in, this lease shall. nevertheless, continue in force as 'though operations were
<br />heing conducted on said 'Iand for so long as said wells are shut in, and thereafter this lease may be continued in force as if no shut in had occurred. Lessee cove~.
<br />nants and agrees to use reasonahle diligence to produce, utilize, or market the minerals capable of being produced from said wells, but in th~ exercise of such dili;
<br />'gence, lessee shall not he obligated to..install or furnish facilities other than well facilities and ordinary lease facilities of now lines, separator, and"lease tank. and.
<br />shall not be required to settle labor trouble or to market gas upon terms unacceptable to lessee. If, at any time in this paragraph above specified. all such wells are
<br />shut in for a period of ninety consecutive days, and during such time there are no operations on said land, then at or be.fore the !!xph:ation of said ~i.net1 ,day peri!,d, .
<br />lessee shall payor tender, by check or draft of lessee, as royalty, a sum equal to the amount of annual dela)! rental proVIded for In thIS lease. Lessee shall make' like
<br />payments or tenders at or before the end of each anniversary of the expiration of said ninety day period If upon su~ anniversary this lease is Iieing:.i:ontiriued in
<br />force solely by reason of the provisions of this paragraph. ~ach such payment or tender shall be made to the parties who at the time of. payment wO!lld. be entitled
<br />to receive the royalties which would be paid under this lease if the wells Were producing, and may be deposited in any depository bank named below. NoiJlingherein
<br />shall impair lessee's right to release as provided in paragraph 12 hereof. In event of assignment of this lease in whole or in part, liability for payment (hereunder
<br />shall rest exclusively on the then owner or owners of this lease, severally as to acreage owned by each. '. ,
<br />--
<br />~ If operations are not conducted on said land on or before the first anniversary date hereof, this lease shall terminate as to both parties, unless lessee on or
<br />
<br />~._. - .Ai': date shall, subject to the further provisions hereof, payor tender to lessor or to lesscn:'s credit in th"
<br />
<br />Bank at or its successors, or in tbA Rank at
<br />
<br />or its successors, which shall continue as the depositorY1 regardless of changes in ownership, of delay rental, the sum of ,I '500 .00 which shall
<br />operate as delay rental and cover the privilege of defernng operations for one year from saId date. In like manner and upon like payments or tenders. operation.
<br />may be further deferred for like periods of one year each during tl\e primary term. If at any time that lessee pays or tenders delay rental, two or more parties
<br />are, or claim to be, entitled to receive same, lessee may, in lieu of any other method of payment herein provided, payor tender such rental, in the manner above
<br />specified, either jointly to such parties or separately to each in accordance with their respective ownership, thereof, a. lessee may elect. Any payment hereunder
<br />may be made by check or draft of lessee deposited in the mail or delivered to lessor or to a depository bank on or before the last date for payment. Said delay
<br />rental shall be apportionable as to said land on an acreage hasis, and a failure to make proper parment or tender of delay rental as to any portion of said land
<br />or as to any interest therein shall not affect this lease as to any portion of said land or as to any Interest therein as to which proper payment or tender is made.
<br />Any payment or tender which is made in an attempt to make proper payment, but which is erroneous in whole or in part as to parties, amounts, or depositories
<br />shall nevertheless he sufficient to prevent termination of this lease and to extend the time within which operations may be conducted in the same manner as though
<br />a proper payment had been made; provided, however, lessee shall correct such error within thirty (30) days after lessee has received written notice thereof from
<br />lessor.
<br />
<br />6. If at any time or times during the primary term operatic;lns are conducted on said land and if all operations are discontinued, this lease shall thereafter term-
<br />inate oD its anniversary date next following the ninetieth clay after such discontinuance unless on or before such anniversary date lessee either (1) conducts opera.
<br />tions or (2) commences or resumes the payment or tender of delay rental; provided. however, if such anniversary date is at the end of the primary term, or if there
<br />is no further anniversary date of the primary term, this lease shall terminate at the end of such term or on the ninetieth day after discontinuance of all operations.
<br />whichever is the later date, unless on such later date either (1) Jessee is conducting operations or (2) the provisions of paragraph 4(e) or 14 are applicable.
<br />
<br />7. Lessee shall have the use, free from royalty. of water, ot\1er than from lessor's water wells, and of oil and gas produced from said land in all operations
<br />hereunder. Lessee shall have the right at any time to remove all machiner)' and fixtures placed on said land, including the right to draw and remove casing.
<br />No well shall be drilled nea,'er than 200 feet to the house or ham now on said land without the consent of the lessor. Lessee shall pay for damages caused by its
<br />operations to growing crops and timber on said land. .
<br />
<br />8. The rights and estate of any party hereto may be assigned in whole or in part and as to any mineral. All of the covenants, obligations, and considerations of
<br />this lease shall extend to and be binding upon the parties qej"eto, their heirs, successnrs, assigns, and successive assigns. No change or division in the ownership of
<br />said land, royalties, delay rental, or other moneys, or any part thereof, howsoever effected, shall increase the obligations or diminish the rights of lessee. including,
<br />but not limited to, the location and drilling of wells and tjle measurement of production. Notwithstanding any other actual or constructive knowledge or notice
<br />thereof of or to lessee, its successors or assigns, no change or division in the ownership of s!lid land or of the'j rolalties, delay rental, or other moneys, or the right
<br />to receive the same. howsoever effected, shall be binding upon the then record owner of this lease until thirty (30) days after there has been furnished to such
<br />record owner at his or its principal ,Place of business by lessor or lessor's heirs, successors, or assigns, notice, of such change or division. supported by either origi.
<br />.-!Ials or duly certified copies of the Instruments which have been properly filed for record and w!dch evidence lsuch change (r division, and of such court records and
<br />~.. --. transcrIpts. or other documents as shall be necessary in the opinion of such record owner to establish the validity of such change or division. If any
<br />~=~ ;:!;;';ii; in ownership occurs by reason of the death of the owner, lessee may, nevertheles. ,Payor tender such royalties, delay rental, or other moneys, or p"rt
<br />~Ceur, to the credit of the decedent in any depository' bank named above. In the event of assIgnment of this lease as to any part (whether divided or undivided)
<br />.. " :;~~aid land, the del..y rental parable hereunder shall be apoortionable as bel ween the several leasehold owners, ratahly according to the surface area or undivided
<br />.. ... C~C='c ~~. es,!1h, .I!!.c! d~fault i.n del~ ~~-!&!.payment b~'- O!Ie shall not affect the right 0' ot!ser leasehold owners hereunder. .'
<br />
<br />q .....~ !r"'~. ., .~ ... '/j."t,....-t. .. ..~......-::::..=-.:......
<br />
<br />~. , If this 'lease'. covers (either now 'or"-h~rea.iter) Q lesa. 1nt~:t',est .in..._.;.
<br />the. oill.gas,. sulphurl or other minerals 1n'all or any pa~t. otsa1:d land' _;~ '<"_~~~<
<br />,than the e'ntire . and >.undivl(l"E!d fee s~ple. 'esta~~ (wheth~l" 1~.8J.C?,~~,s}~lnt~t~.st':0;.:4
<br />.1s herein specified or not h,..or. no: ;1nterest. therein, then the r.ot8:.1ties;/:;,":"~_.;:)~
<br />delay rental, and other moneys accruing from any part as to lfhich this..... .<:,"~
<br />.lease covers less than such full interest shall be paid only in the pro- ~).
<br />portion which the interest thereinJ if anyJ covered by this lease at the
<br />time that such payment: is madeJ bears to the whole and undivided fee simple
<br />estate therein. All royalty interest covered by this lease (whether or
<br />not owned by lessor) shall be paid out of the royalty herein provided.
<br />
<br />10. If this lease is cancelled for any cause, it shall nevertheless
<br />remain in force and effect as to (1) sufficient acreage around each well-
<br />as to which there are operations to constitute a drilling or maximum allow-
<br />able unit under applicable governmental regulationsJ (but in no event less
<br />.than.forty. ac.resL such acreage to be designated by lessee as nearly as
<br />~~~~ticable in the form of a square centered at the wellJ or in such shape
<br />then existing spacing rules requirej and (2) any part of said land in-
<br />~~uued in a pooled unit on which there are operations. Lessee shall also
<br />have such easements on said land as are necessary to operations on the
<br />acreage so retained.
<br />
<br />-"".....-
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