Complete Home & Office Legal Guide/Complete Home and Office Legal Guide (Chestnut) (1993).ISO/ex/sam/re/gas1.sam

Text File | 1993-08-01 | 6KB | 137 lines

OSCAR O. OWNER, referred to as OWNER, and LISA L. LESSEE, referred
to as LESSEE,  agree:


OWNER, in consideration of the sum of $1234.56 ( one thousand two
hundred thirty four & 56/100 dollars), and  further, in
consideration of royalties to be paid upon  production, if any,
grants to LESSEE the exclusive right to  investigate, explore,
drill and produce oil, natural gas and any  other similar fuel and
byproducts and constituents thereof, which  shall include all
rights necessary and ancillary to conduct such  business, which
shall include but not be limited to:

building pipelines, out buildings, installing utility services and
necessary facilities to refine, store and sell all of such
products

on the following described real property:

SEE EXHIBIT 1

"Mother-Hubbard" clause. It is the intention of OWNER to include
not only the above-described land, but also to grant lease, and
let to lessee for the same purposes any and all other land and
interests in land owned or claimed by OWNER, or which OWNER may
have any preference right to acquire, adjoining the
above-described land either in the sections or surveys in which
any of the above described land is situated or in adjoining or
adjacent sections or surveys. Upon lessee's ascertaining the
description of any such additional, excess, or vacant land or
interest therein, lessee shall pay or tender to OWNER an
additional bonus and rental on the same per-acre basis as  that
paid for the acreage rented herein.


If OWNER owns an interest in the oil, gas, or other minerals in
and under the above-described land that is less than the entire
fee simple estate, then whether or not such lesser interest is
referred to or described in this lease all royalties, rentals,
and other payments payable under the lease shall be paid in the
proportion that OWNER's interest in the oil, gas, and other
minerals bears to the entire and undivided fee simple estate.

SECTION TWO TERM

A. Subject to further provisions of this lease, this lease shall
continue in full force and effect for a period of THIRTY years
from  this date, referred to as the primary term, and as long
thereafter as (1) oil, gas, casing head gas, distillate,
condensate, or any other mineral is produced in paying quantities
from the leased premises or from any land with which such land or
any part thereof is then unitized as provided under this lease,
or (2) the shut-in gas well royalty is paid in accordance with
Section Five of this teats, or (3) drilling operations are
conducted in good faith on the leased premises or on any land
with which the leased premises or any part of the leased premises
is then unitized as provided under this lease. As used in this
lease, the term "drilling operations" shall include the drilling
of a new well, the reworking, deepening or plugging back of a
well or hole, or any other operations conducted in an effort to
obtain or reestablish production such drilling operations shall
be considered as being conducted in good faith if not more than
180 days are permitted to elapse between the completion or
abandonment of one well or operations thereon and the
commencement of drilling operations on another well or hole on
the leased premises or on lands with which any of the leased
premises is then unitized.

SECTION THREE RENTAL PAYMENTS

A. If operations for the drilling of a well are not commenced  on
the leased premises, or on a unit area of which any of the  leased
premises is then a part, on or before one year from this  date,
this lease shall terminate unless on or before such  anniversary
date lessee shall pay to OWNER the sum of $1234.56
( ONE THOUSAND TWO HUNDRED THIRTY FOUR & no/100
Dollars) per acre for each acre of land then remaining subject to
this lease, which payment shall maintain lessee's rights under
the lease without the commencement of drilling operations for the
period of one year. in like manner, on like payments or tenders
annually made, the commencement of drilling operations may be
further deferred for successive periods of one year during the
primary term of the lease.



 If, after the expiration of the primary term of the lease,
production on the leased premises and on land with which the
whole or any part of the leased premises may then be unitized
should cease, this lease shall not terminate, but lessee shall
have a period of 365 days from the cessation of production within
which to commence drilling operations on such land and this lease
shall remain in full force and effect so long as production in
paying quantities continues (if production is obtained or
restored by such drilling operations) or drilling operations are
prosecuted in good faith as provided above.
SECTION FOUR ROYALTIES


Lessee shall pay OWNER as royalty on gas (including dry gas,
casing head gas, distillate, condensate, and ail other gaseous
substances) produced from the leased premises and sold or used by
lessee off such premises or in the manufacture of gasoline or
other products, the market value at the mouth of the wells of
one-eighth of gas so sold or used. On all gas sold at the wells
by lessee, the royalty shall be one-eighth of the amount realized
from such sales.


SECTION FIVE POOLING AND UNITIZATION

Lessee shall have the right from time to time to unitize, pool,
and combine. Lessee shall not be liable to any party for the
reduction of the acreage content of a unitized area resulting
from any cause beyond the control of lessee, nor shall lessee be
obligated to make any retroactive apportionment of royalties or
sums paid on production should the acreage content a unitized area
be reduced. The provisions of this section shall be  construed as
covenants running with the land.

Dated: ___________________________




______________________________________________
OSCAR O. OWNER




______________________________________________
LISA L. LESSEE