Fill and Sign the Oil Ampampamp Gas Lease Formsis There a Standard Form

Nebraska Prod 88 (Rev 9/99) (Paid-up/Pooling)OIL, GAS, AND MINERAL LEASE This Oil, Gas, and Mineral Lease (the “Lease”) is dated ______ (the “Effective Date”). The parties to this Lease are _____, as Lessor (whether one or more), whose address is _____, and ______, as Lessee, whose address is ______. 1. For the consideration of ______ Dollars and other valuable consideration, the receipt of which Lessor acknowledges, and the covenants and agreements of Lessee in this Lease, Lessor grants, demises, leases and lets exclusively to Lessee, the lands de scribed below (the “Lands”), for the purposes of mining, exploring by geological, geophysical and other methods, operating for, producing, and taking care of, removing and selling all oil, gas, and a ll of the products of oil and gas, with rights of way and easements for laying pipelines, and the erection of structures necessary or convenient to produce, save, store, make merchantable and transport all the oil or gas produced from the Lands or any adjacent lands. The Lands cove red by this Lease are located in _____ County, Nebraska, and are described as follows: [Description of Lands] The Lands are deemed to contain __________ acres, more or less and shall include any lands of Lessor in the same survey or adjacent surveys. 2. This Lease shall remain in full force and effect for a primary term of _____ years (the “Primary Term”) from the Effective Date, and as long thereafter as oil, gas or t he products of oil or gas are produced from the Lands or leases or lands pooled with the Lands, or drilli ng or reworking operations are continued as provided in this Lease. 3. This is a PAID-UP LEASE . For the consideration paid to Lessor, Lessee is not obligated to commence or continue any operations on the Lands during the Primary Term, or t o make any rental payments during the Primary Term. Lessee may at any time or times during or after the Primary Term surrender this Lease as to all or a portion of the Lands by del ivering to Lessor, or by filing for record in the county where the Lands are located a release or rel eases of the Lease, and then be relieved of all accruing obligations as to the portion of the Lands surrendered. The Lease shall continue in force and effect as to all of the Lands not surrendered. 4. Lessee agrees to pay Lessor a royalty on production as follows: a. Lessee shall deliver to the credit of Lessor as royalty, free of cost, in the pipeline to which Lessee may connect its wells, or into Lessee's storage tanks a ______ part of all oil produced and saved from the Lands. At Lessee's option, Lessee may pay to Lessor as royalty _____ of the proceeds of the sale of oil at the storage tanks. b. Lessee shall pay Lessor, as royalty on gas sold from each well, ______ of the proceeds if gas is sold at the well, or if marketed by Lessee off the Lands, _____ of the value received for the gas sold off the Lands. c. Lessee shall pay Lessor _____ of the proceeds received by Lessee from the sale of casinghead gas produced from any oil well and ______ of the value, at the mouth of the well, computed at the prevailing market price, of the casinghead gas produced from any oil well and used by Lessee off the Lands for any purpose or used on the Lands by Lessee for purposes other than the development and operation of the Lease. d. Lessee will pay Lessor _____ of the proceeds from the sale of all other products of oil and gas not provided for above. In no event, in the payment of proceeds for royalty, shall Lessee ever be obligated to pay to Lessor, a sum greater than _____ of the sum Lessee actually receives for the sale of oil and/or gas or other products. 5. If at any time, there is a gas well (one or more), on the Lands, or acreage pooled with the Lands, whether before or after the Primary Term, and the well is shut-in, with no other production, drilling operations or other operations being conducted on the Lands capable of maintaining this Lease in force under any of its provisions, Lessee shall pay Lessor as roya lty the sum of One Dollar ($1.00) per year per acre for each acre of the Lands then subject to this Lease. This payment is to be made on or before the anniversary date of this Lease following the expiration of 90 days from the date the well is shut-in, and thereafter on the anniversary da te of this Lease during the period the well is shut-in. When the payment is made it shall be considered that this Lease is maintained in full force and effect until production resumes or t he next shut-in royalty payment is due. 6. If the Lessor owns a lesser interest in the Lands than the entire and undivided fee simple estate in the minerals, the royalties (including any shut-in gas royalty) shall be paid to Lessor only in the proportion which Lessor's interest in the Lands bear to the whole and undivided fee simple in the Lands. 7. Despite anything in this Lease to the contrary, Lessor expressly agrees that if Lessee commences operations for drilling a well at any time while this Lease is in force, this Lease shall remain in force and its term shall continue as long as the operat ions are prosecuted as provided in this paragraph 7. If production results from the well, this Lease shall rema in valid and in force as long as production continues from the Lands. 8. If at the expiration of the Primary Term oil, gas or the products of oil and gas are not being produced but Lessee is engaged in drilling or reworking operations on the Lands, this Lease shall continue in force so long as those operations are being continuously prosecuted on the Lands. Drilling Operations shall be considered to be continuously prosecuted if not more than 60 days elapse between the completion or the abandonment of one well and the begi nning of operations for the drilling of a subsequent well. If after the discovery of oil or gas or the products of oil or gas on the Lands or on acreage pooled with the Lands, production should cease, from any cause, after the Primary Term, this Lease shall not terminate if Lessee commences additional drilling or reworking operations within _____ (____) days from the date of cessation of production, or from the date of completion of a dry hole. If oil, gas or the products of oil or gas are discovered and produced as a result of operations at or after the expiration of the Primary Term, this Lease shall continue in force so long as oil, gas, or the products of oil or gas are produced from the Lands. 9. Lessor grants Lessee the right to use, free of cost, gas, oil, and water produced on or from the Lands, for Lessee's operations, except water from Lessor's wells. When requested by the owner of the surface of the Lands, Lessee will bury pipelines across cultivated lands be low normal plow depth. No well shall be drilled nearer than 200 feet to any house or barn located on the Lands as of the Effective Date of this Lease without the written consent of Le ssor. Lessee will pay for damages caused by Lessee's operations to growing crops on the Lands. Lessee shall have the right, at any time, but not the obligation, to remove all machinery, equi pment, and fixtures placed on the Lands, including the right to draw and remove casing. 10. The rights of Lessor and Lessee may be assigned in whole or in part. However, no change in ownership of Lessor's interest in the Lands shall be binding on Lessee until 60 days after Lessee has been furnished with written notice, accompanied by certified copies of all recorded instruments or documents and other information necessary to establish a complete chain of title to Lessor's interest, and then only with respect to payments made after Lessee's actual receipt of the notice. No other notice of any kind, actual or constructive, shall be bindi ng on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of the Lands shall operate to enlarge the obligations or diminish the rights of Lessee. All of Lessee's operations may be conducted without regard to any division of ownership by Lessor. If all or any part of this Lease is assigned by Lessee, no leasehold owner shall be lia ble for any act or omission on the part of any other leasehold owner. 11. Lessee is granted, at its option, the right and power to voluntarily pool or combine all or any portion of the Lands covered by this Lease, as to either oil, gas, or both, wi th any other lands, or leases adjacent to the Lands when, in Lessee's judgment, it is necessary or a dvisable to do so to properly develop and operate the combined lands as a unit or units. Lessee may pool the Lands forming units not exceeding eighty (80) acres for an oil well, plus a tolerance of 10%, and not exceeding 640 acres for a gas well, plus a tolerance of 10%, except that if larger units are required or permitted under any governmental rule or order for the drilling or operation of a well at a regular location, or for obtaining the maximum production allowable from any wel l drilled or to be drilled, larger units may be formed. Lessee, or Lessee's designee, shall execut e and record in the county where the Lands are located an instrument identifying and describing the lands included in a unit. All acreage pooled into a unit shall be treated for all purposes, except the payment of royalty, as if it were included in this Lease, and drilling or reworking operations on any land in a unit or production of oil or gas, or the completion of a well as a shut-in gas well, shall be considered for all purposes, except the payment of royalty, as if the operation were on, production is from, or the completion was on the Lands covered by this Lease, whether or not the well or wells on the unit are located on the Lands covered by this Lease. In lieu of the royalty or shut-in gas royalty provided above, Lessor shall receive from production from a unit a portion of the royalty provided in this Lease as the amount, in acres, of the Lands included i n the unit or the Lessor's royalty interest in the Lands included in the unit, bears to the total amount of acreage included in a unit. At Lessee's discretion, or in the absence of production, Lessee or Lessee's designee may terminate any unit by filing in the county records a notice of termination of the unit. 12. All express or implied covenants of this Lease shall be subject to all federa l and state laws, executive orders, rules, or regulations of governmental bodies having jurisdiction. This Lease shall not terminate in whole or in part, nor shall Lessee be held lia ble in damages, for failure to comply with any Lease terms if compliance is prevented as the re sult of any law, order, rule, or regulation. Lessor expressly warrants and agrees to defend the title to the Lands and agrees Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxe s, or other liens on the Lands in the event of failure of payment by the Lessor, and Lessee shall be subrogated to the rights of the holder of any mortgage, taxes or other liens. Lessee may reimburse itself for payments out of any royalties or rentals payable to a Lessor for any a mounts paid by Lessee for Lessor for or on any mortgage, taxes, or liens. 13. All the provisions of this Lease shall be binding on the heirs, successors, assigns, and legal representatives of the Lessor and Lessee. This Lease is executed by Lessor as of the date of acknowledgment of Lessor's signature, but shall be effective for all purposes as of the Effective Date stated above. Witnesses: Lessor___________________________ ___________________________ Social Security Number Individual Acknowledgment STATE OF ______________________ COUNTY OF ____________________ The foregoing instrument was acknowledged before me this _________________ ____________________ by ________________________________________________. Notary Public in and for the State of Printed Name: Commission Expires: Corporate Acknowledgment STATE OF ______________________ COUNTY OF ____________________The foregoing instrument was acknowledged before me this ______________ by ____________________, the ____________________, of ____________________, a __________ corporation, on behalf of the corporation. Notary Public in and for the State of Printed Name: Commission Expires: