O-1988-1622 - Laserfiche WebLink

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". _...~-- --e e hydroCarbons. or any thereof, are produced in paying quantities from the leased premises. The words "lease year" shall mean each year that this lease is in force. commencing on the anniversary date of this lease. "Net mineral acres", as herein used, shall mean the number of acres divided or undivided on which Lessor had the right to execute a lease covering the mineral interest in the land described herein. 6. SHUT-IN PROVISION Q!~: Notwithstanding anything to the contrary herein contained, it is understood and agreed that if and while there is a gas well or wells on the leased premises (and for the purpose of this paragraph the term "gas well" shall include wells capable of producing natural gas, condensate, distillate, or any gaseous substance, together with wells classified as gas wells by any governmental authority) and such well or wells are shut-in, the Lessee shall pay Lessor monthly, on a well by well basis, the sum of $ 2.00 per month for the first six (6) months for which shut-ins are due and the sum of $~.oo per month for all months thereafter. The applicable amount shall be paid monthly, the first pay- ment being due no later than sixty (60) days after completion of such shut-in well and shall continue until gas is produced and sold from such well, provided, however, that Lessee may not main- tain this lease in force and effect solely by the tender of shut- in payments in accordance with the terms of this paragraph for longer than twelve (12)~per occurrence. oon'fhS 7. SUBROGATION: Lessor's rights and interest hereunder shall be charged primarily with any mortgages, taxes or other liens or interests or charges on the estate of Lessor in said land, but Lessor agrees that Lessee shall have the right at any time after thirty (30) days notice to Lessor, either before or after maturity, to be subrogated to the rights of the holder thereof, and to deduct the amount so paid from the royalties or other payments due or which may become due to Lessor, or its assigns, under this lease. 8. PARTIAL OWNERSHIP OF MINERAL ESTATE: It is agreed that if Lessor owns an interest In said land less than the entire mineral estate (whether Lessor's interest is herein specified or not,) royalties, rentals and shut-in payments to be paid or delivered to Lessor shall be reduced proportionately and all outstanding royalties shall be deducted from those herein provided. 9. CESSATION OF'PRODueTION AND CONTINUOUS OPERATIONS: After discovery and produCtion of oil, gas or other liquid hydrocarbons on any well tract. or unit, if production thereof should cease from any cause, this lease insofar as' it covers such well tract or unit shall not terminate if Lessee commences operations for drilling a new or reworking an existing well thereon within sixty (60) days thereafter, or, if it be within the primary term, commences or resumes the payment or tender of rental, or commences operations for drilling a new or reworking an existing well thereon, on or before the rental paying date next ensuing after the expiration of sixty (60) days from date of cessation of production. In the event Lessee commences operations for drilling a new or reworking an existing well, as provided in this paragraph, and production is not' termination of this lease insofar as it covers such well or tract may be further deferred as long as Lessee continues good faith operations for drilling a new or reworking an existing well with no cessations of more than sixty (60) consecutive days. If at the expiration of the primary term Lessee is then engaged in any drilling or reworking operations thereon or shall have completed a dry hole thereon within sixty (60) days prior to the end of the * established, 6