Fill and Sign the Option Agreement Long Form Sec

Page 1 of 2 OPTION AGREEMENT(Option to Acquire Lease) STATE: COUNTY: OPTIONOR: (Name and Address) OPTIONEE: (Name and Address) EFFECTIVE DATE: Optionor, named above, owns (all/part) of the surface and/or mineral interest in the lands described in Exhibit “A” (the “Lands”). Optionor desires to grant Optionee, named above, an option to acquire a lease on Optionor's interest in the Lands.For valuable consideration, the receipt and sufficiency of which is acknowledged, Optionor grants Optionee, its successors or assigns, for a term of ____ from the Effective Date (the “Option Period”), the exclusive right and option, but not the obligation, to acquire a lease on all or a portion of the Lands on the identical terms and conditions as set forth i n the form leases attached as Exhibit “B” to this Agreement (the “Option Lease” or “Lease ”). Optionor agrees not to enter into any lease or other agreements which would prevent Optionee from exercising this option on all or a portion of the Lands during the Option Period. Should Optionee elect to exercise its option to acquire a Lease within the Option Period, Optionee shall notify Optionor in writing of that election by depositing the notice of election into any U. S. Post Office receptacle with sufficient postage, addressed to Optionor, and tender to Optionor, in the form of a bank draft or check, payable to Optionor, the amount of $____ per net mineral acre, for each net acre Optionor owns in the Lands (the “Option Payment”). On placing the written notice and Option Payment in the mail to Optionor, Optionee is authoriz ed to place of record, in the county where the Lands are located, the Lease or Leases attached as Exhibit “B,” which has been executed by Optionor, as Lessor. The written notice and tender must take place within the Option Period for this Option to be deemed to have been timely exercised. If during the Option Period, Optionor receives a bona fide offer from any party to purchase a lease on all or any part of the Lands, and if Optionor is willing to acc ept the offer, Optionor shall promptly notify Optionee in writing of the name and address of the offeror, and include a copy of the offer setting out all pertinent terms and conditions of the offer, i ncluding the amount of the offered consideration to be paid for a lease. Optionee shall have a period of ____ days after receipt of the notice from Optionor to exercise a preferential right to purc hase a lease from Optionor on the same terms and conditions contained in that offer, by giving Opt ionor written notice of Optionee's election to exercise the preferential right to purchase a lease at that time. Optionee shall furnish Optionor a lease for execution, along with a draft for the le ase bonus, all containing the same terms contained in the offer that prompted Optionee's exe rcise of Page 2 of 2 its preferential right. If Optionee does not exercise its preferential right to acquire a lease and Optionor leases its interest in these Lands to another party, this Option shall be de emed to have terminated. If Optionor does not execute a lease to a third party, this Agreement sha ll continue in force and effect. (This provision shall apply to all of the Lands or any part Optionor does not lease.) In the event Optionee does not tender the Option Payment on or before the expiration of the Option Period, this option shall terminate and the lease shall be null and void and of no further force and effect. All of the terms, covenants, obligations and considerations of this Agreement shall extend to and be binding upon Optionor and (his/her/its) heirs, successors and/or assigns. This Option Agreement is executed by Optionor as of the date of Optionor's signature, but shall be deemed effective for all purposes as of the Effective Date stated above. Optionor [Exhibit “A”: Description of Lands.] [Exhibit “B”: Form of Leases.]