Fill and Sign the Author Oil Ampamp Gas Lease Perpetuation Operating Reworking Form

POOLING Form 1. Drilling, reworking operations, or production of oil and/or gas from a pooled unit established under the printed provisions of this Lease shall maintain this Lease in effect only as to that portion of the lease premises which is included in a pooled unit. This Le ase may be maintained in effect as to the remainder of the lease premises in acc ordance with the other provisions of this Lease. However, if the Lease is maintained by the payment of delay re ntals during its primary term, the delay rentals shall be proportionately reduced and payabl e on a prorata acreage basis on only that portion of the lease premises not included in a pooled unit. Form 2. Production from or operations on a pooled unit or units including a portion or portions of the lease premises will maintain this Lease in force only as to the acreage included in the unit or units. On acreage not included in a unit or units, the Lease may be maintained by any of its other provisions. Form 3. Neither pooling or unitization of any part of the lands subject to this Lease shall be effective and binding on Lessor until the pooling or unit designation is filed for record in t he county or counties where the lease premises are located and until Lessor is notifi ed in writing of the pooling or unitization. Form 4. Drilling or reworking operations on and the production of oil or gas from any formation, zone, or horizon in and under a pooled oil unit or a pooled gas unit formed pursuant to the printed provisions of this Lease will maintain this Lease only as to that portion of the lease premises located within the pooled unit and only as to the formation, zones, or horizons from which production is being obtained. This Lease may be perpetuated as to nonproductive formations, zones, and horizons, and that part of the lease premises located outside of the pooled unit under other provisions of this Lease. Form 5. Drilling operations on a pooled unit or units allowed by the pooling provision contained in the printed portion of this Lease and approved by appropriate governmental authority shall be considered to be drilling operations effective to maintain this Lease in full forc e and effect only as to that portion of the lease premises included within the unit or units. Product ion from a well or wells located on any pooled unit or units shall be considered to be effective to maintain this Lease in force only as to that portion of the lease premises included within the unit or units. Form 6.The lands subject to this Lease may not be pooled without the express written consent of Lessor. Form 7. Lessee does not have the right to pool the lease premises with other lands for the production of gas unless the pooled unit includes (Specify Amount) of the lands covered by this Lease. Lessee does not have the right to pool the lease premises with other lands for the production of oil unless, prior to the pooling, the lands covered by this Lease have been fully developed by the production of oil, according to applicable spacing regulations, prior to the pooling. Form 8. While the printed portion of this Lease grants Lessee the authority to pool or unitize the lease premises, no part of the lease premises may be pooled with other leases or la nds until (Specify Amount) of the lease premises, not included in the proposed pool or unit, have been included in a production or proration unit or units on which there is an oil or gas well produc ing in paying quantities. Form 9. The lease premises shall not be pooled with any lands not owned by Lessor without Lessor’s written consent, unless it is necessary to comply with the spacing regulations or unit regulations of the governmental authority having jurisdiction over such matters. Form 10. Pooling authorized by the pooling provision contained in the printed portion of this Lease is limited to gas and gas rights only. The term “gas” shall include condensate, distillate, and other substances produced from any gas well, but shall not include casinghead gas or any other substances produced from an oil well. This authorization to pool is further limited in tha t any pooling must include (Specify Amount) of the lease premises (although the pooled unit may be limited to one or more formations underlying the lease premises), and any pooling which includes less than (Specify Amount) of the lease premises shall not be effective. Lesse e shall not be authorized by subsequent partial releases, amendments, or revisions of this Lease to reduce the land contained within any pooled unit so that the revised and contracted unit contains less than (Specify Amount) the lease premises. Form 11. This Lease shall not be deemed to and does not grant Lessee the authority to pool all or any part of the lease premises. All references to pooling, if any, in the printed portion of t his Lease, are deemed excised and deleted. Form 12. In the event a pooled unit is created which encompasses land located outside the le ase premises and some, but not all, of the lease premises, any drilling or reworking operations on or production from a well located on that pooled unit shall continue this Lease in full force and effect only as to that part of the lease premises contained within the pooled unit. No part of the lease premises which lies outside the pooled unit shall be maintained under this Lease by operations or production from the pooled unit. Lessee is entitled to continue this Le ase as to that portion of the lease premises not included within a pooled unit, during the primary term (assuming that part of the lease premises is not otherwise being maintained), by paying t he delay rentals provided for in the printed portions of this Lease for the number of acres not included within the pooled unit. Form 13. In paragraph ____ of the Lease, all references to 80 acres plus a 10% acreage tolerance for oil shall be amended to 40 acres. References to 640 acres plus a 10% acreage tol erance for gas shall be amended to 320 acres. If, however, the state regulatory agency having jurisdic tion should allocate a producing allowable based in whole or in part on acreage per well, then Lessee may embrace additional acreage allocated or permitted for the producing well provi ded that such larger spacing unit is justified by the initial production of the well as being great er than the maximum allowable for a smaller spacing unit. Form 14. Lessee agrees to place Lessor’s lands into fifty per cent (50%) of any unit from any well or wells capable of commercial production adjoining and closer than 1,320 feet to the leased land and produced by the Lessee or its assigns. Form 15. Lessee must obtain Lessor’s written approval of the unit to be pooled prior to pooling any of the land covered by this Lease. It is understood and agreed that Lessors, their heirs, successors and assigns, cannot arbitrarily withhold their consent to pool or unitize the lands with other contiguous tracts of land. Form 16. Pooling shall be permitted only with adjoining and contiguous lands so as to form a standard proration or spacing unit and only if 50% of the acreage contained in the proration uni t is from this Lease. Form 17. Without the written consent of Lessors, their heirs and assigns, no unit or pool shall be created on the lands where the unit well is situated on lands covered by this L ease unless at least one-half (½) of the lands included in the unit are lands covered by this Lease. Also, no part of the lands covered by this Lease shall be unitized with any other acreage whe re the unit well is located on lands not covered by this Lease unless at least one-half (½) of the unit consist s of lands covered by this Lease. Form 18. There shall be no pooling granted under the terms of this Lease without the express written consent of the Lessor, and any reference to pooling in the printed portion of this L ease is hereby deleted. Form 19. Lessee shall have no right or power to pool or combine the acreage covered by this Lease or any portion of it, as to oil, with any other land as provided n paragraph ____ of the printed portion of this Lease, without the express written consent of Lessor. Lessee’s rights to form gas units in the absence of orders governing a unit promulgated by a governmental authority having jurisdiction shall be limited to 320 acres. In the event a governmental regulation prescribing the size of the unit, then Lessee shall have the right to form a unit conforming to t he spacing regulations promulgated by such governmental authority. Form 20. If Lessee elects to pool any of the acreage covered by this Lease as authorized under paragraph No. ____ of the printed portion of this Lease, only the lands adjacent and contiguous may be pooled with Lessor’s lands, and then only in the event Lessor has insufficient acre age to comprise a full unit. Form 21. Lessee must pool all acreage included in this Lease for the production of gas, and L essee shall not have the right to pool or unitize this Lease, the land covered by it, or any part of it for the production of oil; provided, that Lessee shall have the right to pool or unitize for the production of oil all of the last drill site tract in the event it is insuffici ent in size to obtain a full production allowable under the rules of the regulatory authority having jurisdiction in the matter. Form 22. In the event Lessee elects to pool units under the pooling rights authorized under this Lease, then units for gas wells shall comprise the total acreage in this Lease . The units for oil shall comprise 40 acres or the acreage as allocated by the regulatory authority having jurisdiction, and the units will comprise acreage out of this Lease until all a creage has been allocated to a unit. Form 23. A pooled unit for gas which includes any horizon shallower than 8,000 feet below the surface of the earth shall not exceed in a area 320 acres plus an acreage tolera nce of 10%, except that larger units may be created to conform to any spacing or well pattern that may be prescribed by governmental authorities having jurisdiction. Form 24. Drilling operations on or production from a pooled unit or units shall maintain this Lease in force only as to the land included in pooled units. Form 25. The following rules shall apply with respect to any pooling or unitization. All pooling or unitization units formed by virtue of the provisions of this Lease shall be drawn, so far as i s practical, in the form of a square or rectangle, with the well located in the a pproximate center thereof. Where a well is located on the lands covered by this Lease and the pooling and unitization provisions are exercised by the Lessee to form a unit including acreage not covered by this Lease, then the unit shall be drawn so that at least 50% of its tota l acreage shall be comprised of lands covered by this Lease; and, where the well is not located on lands c overed by this Lease, then the unit shall be drawn so that at least 50% of its total acreage shall be comprised of lands covered by this Lease. In the event it should become advantageous or necessary to draw a unit under different percentages than mentioned above, Lessee, it successors and/or assigns, shall do so only after consulting with and receiving written permission from the Lessor. Al l units shall be designated by the Lessee, and unit designations shall be filed by the Lessee in the appropriate records of the county or counties where the leased acreage is located withi n 30 days after the completion of a producing well. Form 26. In the event a portion of the land covered by this Lease is pooled or unitized with other land to form a pooled or unitized unit or units, operations on or production for the unit or units will maintain the Lease in force only as to the leased land included i n the unit or units. The balance of this Lease may be maintained in force only as to any land it cove rs and not included in a unit or units by a delay rental payment during the primary term. At the end of the primary term of this Lease, the Lease shall terminate except for each producing well then situated on the leased premises and that portion of the Lease premises which shall have been designa ted as a proration unit. Form 27.In the event a portion or portions of the land is pooled or unitized with other land so as to form a pooled unit or units, operations on, or production from the unit or units will maintain this Lease in force only as to the land included in the unit or units. The Lease may be maintained in force as to any lands not included in a unit or units in any manner provided for in this Lease, provided that if it be by rental payment, rentals shall be reduced in proportion to the num ber of acres included in a unit or units. If, at or after the end of the primary term, this Lease is being maintained as to a part of the land by operations on or production from a pooled unit or uni ts embracing lands covered by this Lease and other lands, and if at such time the re is land covered by this Lease which is not situated in a unit or units, and as to which the L ease is not being maintained by operations or production, Lessee shall have the right to maintain the Le ase as to those land by rental payments exactly as if it were during the primary term, provided that this Lease may not be so maintained in force by rental payments more than two (2) years beyond the end of the primary term.