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~ OII., GAS AND MINERAL LEASE ` ~ ` = ~ t : ~
THIB AGRiSaIENT uo~d~ thL 20th ei, oc August . i~6~ . e.c....
Sybil Levi.ta C~il.verhouse, Individu~lly and as Trustee under the ~.ast 1~t~11 and Testament of
B. A. Brorm deceased, and as Quardian of the Estate af John Bradford 1,~zl.verhouse, a minor, ~
and (~eor~;e ~I. Culverhouse~ her husband~ George H. (kilverhouse, Jr, and wife, lrene (~lverhouse
I.eawr (wbetbrr ane ar awrm). aad 8'[JN OIL C01lPANY, a Ntw JeneY cer1+a~tiati, with ~w ottiee at DwUss, Ten~s, I~~ee,
W I T N B 8 8 E T 8:
iu comldentbn ~r ihree lhousand Six Hundred 'r'orty I~ne No/lth~---_--
36~ ) in han~ prfd, ot the roraltlei Aerein pmvided, sn~ of tAe urmment~ ot I.eascr henin contained, hereby ¢nnt~, lew~r and kts
e:c7wive~y unto L,~~ee [ur tAe Durqx~ ot inve~ti~tin`, ~Dlorine. Gto~lxcti~, driUing ~Ad eainin~ tur, producina ¦nd o~+ninQ ~il, Q~u and all utAer min-
rrab, rnnetructlnQ ~nd mnintalnine pipe linee, rv~ds, anlu, power ~4tioo~, eanals, telePhone Ilne~, houses to~ its emylu>•e~, and uther etructunr •nd tacil6
tlea thercun IO Dry~U~`C, YYl, takr eare uf, Lreat, dirpwe of. ~taec, ~nwnufuture, translx~rt, •nd own s~id Vn~ducte and aalt water, the tulluaina drxribed
land in t'i• Ll1L'~J~~1'' 3~ ~U`IH~ _ t~J1iVCiL~~~~
Sectiens 1& 2: ; Section 3: E2i Section 10: E~; Sections 11, 12i 13: A.11;
Section ]l~ : N2 & north 30 ~ of Sz• Section i5: ~a N~t & ncrth 30 ~ of r~,~ SE~,;
Sec~ion 21~: All; Sectio~ 2S : I~ & 1'~}~ 5~.
~WNSHIP 3I~ SQUTH, ft~cL~9 ~?sT
5ection 6 & 7: AI. ~
Section 1$: I3orth 3$ ~ of NWy S}~4, NE{ less south 3$ ~ af SE;; h~:~; E2 NW;~, that part of SinF
lyin west of r"t. Fierce Farn~ Brainage ~Jistrict dike; i~'~14 N4~, SZ S~ S4Js Ni~-4,
N 3~~ af SW~ N[~4, Iv'E~ S'~ lying north of Ft. ~'ierce Farm I7rainage ~L ct dike,
Section 19: ~F lving ~est of Fort "rierce rarm Drainage District dike. '~i'~ ~2 ~"a•
Sectic~n 30: h^:l;; and Ir~ SW4
~nd, in additicn, any •nd nt! l~nd snd r3~hin snd interest in land owned or elaimed by LcMeor and adjacen! or conti¢uous W the land above descrilx~i.
i
I'ror th~ Dnrpa~e ot determininY the ~mount o! wy money yayment mereunder. ine.uding tbe duwn cash payment, ~aid premises sh~ll be tre~ted an
~mPriein~ -7?i3~ ures. wheEher Lherr be more or lea.
E. Snb;ec! ta tbe other D~vuiom heeein tObLiSO!'~. t6G )cue shall be for a tcraa of tan yean froca thie date (ealled "Drimary terQi') and rs long
thereafGer as oil. ¢rs or ofLer minenl is Droduced from aaid land hereunder or land with which it or any part of it mss be Doolyd.
8. Tioyaltios W be Dald hy Lensee sre: (a) on oil, ¦nd on coadenute enved at the well, one-eixhth of that U~luced and savrd trom ssid land, t~c
aame to be delivered at the welt or to the credit ot Leaaor in the Dipe line t+o which the welb may De connected; L.esaee may fn~m time to time purchaee
any nueh royalLy oel or c~ndensate in ita voaeeesion, payinY the m~rket Dr;~ therefor prev~ilin¢ tor the tie:d where v~l~ced tor oil or eondenaate of ]ikc
kind and era~~itr on the daGe of Dtis'~b~: lb) on Qas, includin~t cariaahe~d Qaa or other Qaaeoae snbatance, produced trvm said land and aold or usad o[f thc
premisee or in the msnufrcture of {c~soline or other pcvduct tberofrom, t6e m~xlcet value ~t the weU of untieighth ot the Qas aa aold ur u+ed. Drovidcd that on
Kas eold at Lhe erella the ruyalty ehaU be one-ei~hth of the amount realised t:om auch wle: if ai sny time or timrs, either durinR or atter the pr{mary terni,
there ia a well or 9vella capable ot peroducinQ yns only or gaa ~nd liQuetia6le hYckocarboue on wid lrnd or on lend wri.h which it or cny psrt of it may be yoolal.
but such eubetance or substancee rre aot wld or used oft the Drrmisea ia payin8 v~ntitiea, and if thie leaee ie not otherwise beinR mnintaincd in forcc, it
ahall neverthelees be cr~neideted that such ~uLeWnce or subetancee are bein~ yroduced and marketrd in DBYin¢ quantitiea durinP all auch time or timee; ~rithin
eixty (60) daya after the ezpiratlun of each yeat durinr w6ich boLh sucd eforementioncd mndltione exiet, I.ensee ehall pay as royalty to the partiea whn
would be entitted at the end of such year to myalty oa actual D*'oduction ot ~nch subetanccs e eum equsl to thr smuunt. it any. by which the rental pruvide:!
Aerrin es Lo the screaSe then eovemd by t6ie Isaae (whether durina or after the Dzimary term) e:ccede th4 tvtal royalliee prid nnd payrble hrrevnder on the
actual yrodnctlon of oil, @u ~nd other mineraL dusla[ sneh ~ear; any Neh naYment may be made in the manner nn~vider! hemin [or thc veYment or tender
ot rental, including al! terme with reeyect to the deposit of same in the d~ipoated depwitory bank • where any euch DeYn+ent is mrde with rcwpect to two
or more we1L, the wmonnt of nueh Dayment rlull tor ~If purposer be aUocated W aad de!emed attributeble W eu~h ~cells seraratelY in eQual proportlona; Lhe
term "yeat" us ueed in thie pan~raph shall me~o the trrelre (12) montLs perlod commencinQ w~ith thb ~ate •nd each eucceeNive tweive ~121 munthe qetiod
thereatter, a6ethv during or sfter Lhe DT~r3 urm: (c) on all oth~ mineralo mined and marketed, one-timth cither in kind or valne at the wr.ll
cr m;ne, at Leeeee'e election, exceDt that on eulphur tlfe royilty stull be One Doltar (;1.001 yer lopY ton. Leesee ehail have free use ot oil. Qae snd water
troaa said land, excepL wster trom L,easor~ ~veile, for sll oDentiona 6erennder, and the rm•altr on oil aad ~a ehall be computed after deduct3nff any ao used.
4. I.e~see ia her~eby arwnted the right, pow~er and oD~oa at any time or timee to po~ol and comb9ne the land corered by this le~se or snp vortien
thereot with any other laed, Iesee or leases in the v~cinity fhareoL w~6en in the Leyeee'~ iudammt it is nece~ary or adviuble to do eo. Such poolin¢ mwy
include all oil, Kae and other minenL or may be limitcrl to one or more auch aubetanree and may eztend W all auch D~uction or may be limited Lo one
or mure sanea or formaGona. Any ~uch DoolinQ shnll be into a anit or uni4 nd eueeedinY by morn than tea percent (IO~jc) forty (4U) acrm each for Lhe
exploration, develoyment and D'-"~duction ot oil, and nnt eaceeding by more than ten yerecnt (lOrJo) si: handred forty (640) aerra each for t6e e:Dloration.
deveEopment and praciuction ~t ¢se, Including eondensste; Drovided, lw~vever, that if rny qeuvrrnmenta] authority preecribee or Detmita • lar¢er unit ae a
epacinQ pnttern for tbe orderly develoyment of the field, or for any other yurpoee, or shall allocate • producin~ allowable baeed in ~ahole or in part on
acreajre per well. any unit may be formed or reformed to embrmce terea~e up to the maximum content eo Dreseribed, permitted or allucated. The eftective date
and term ot eech auch poolin¢ ehall De ae set forth by Lea.qee io sn inetrument filed for mord in the county or tountiea in which the pooled land is ~ituated.
which instrument ahall dr3cribe the ecceaae, zones, formntione and aubstar.ces pooled. Any unit may (nclude land u~n which s well hae theretofore been
cumPleted or upon which o~erations for drifling have theretotoce been commenced, and within the meaninq ot vg~*¢~Dh 5 hereof sny euch weil or opetattone
ahall be considerecf sa having been commeuced su6eepuenY tn the etfective dste of such q~wlinR. ~'raluciion, driRing or r~warkin¢ opentioae anywhere on
any such tmit shall be treated sn D~duetion, drillin~ or reworicing _operationa on land covem3 by tAis lease. There ahall be allo¢~ted to thia lesee the D~-
portiun ot the p~oled pruduction from any surh unit (whether or not ~m lend covered by thie leane) that the number ot nurface acree covered by thie
leaae and included in the unlt beare to the total number ut earface acrea !n euch unit; ~vpalties ehall be Dnid hereunder only nDon that yottion uf euch
pmduition so sllocated, and as to poolcd productinn from isnd ie aueh unit eueh mynltiee eT~all be in lfeu ot any other royaltiea. Reduction in the eize ot or in
the interest coverecl by any such unit ss a reeult ot tatlurn ut title or any other eauee shell aot ot iteelf terminste lhe puoling. In Lhe event ot sny such
't reduction no retraactive aDDoHionment of ropalLiea ehall be revuired ; nor ehall ro1'altiee be D~3'able thereafter on yroductiun from a tract (or on productien
~ attrib~kable to an interest therein) title to which haa thus been los4_
5. I( opentions tor drillin¢ am not commenced on eaid lend or on acrea8e pooled with such land, or any yart thcrc~f, on or before one year from ;
thi9 date thia lenee eha11 then terminate aq tA bDL~1 jliTf129, URICS6 on or beforc such anniveratry date Leneee ahatl pay or tender to I.eseor or to the eredit ~
~
~ of I.~>ssor in Bank at i"~~ : iercea 1"r'.LOI'~Q3 (which 6snk and ite
aucceseon are I,eseor'a a¢ent and eFall continue ae the depoaitory for all rentalP ysysble henun er tesard ese of changra in ownerehip ot said land or the
~1 rent~l~l the Eum of ~lI'ee 'lhousand 5ix ~~12T]CIY'8C: t' C~I't.'~/' ;~ne i~O~l~r.-~u1lan (f ~bt~g ~ ~
~herein callcvi rentnl), w~hich ahall cover the priviteqe ot deterring commeneement o[ drillin¢ operations for a penod of twelve (121 mox~ths. in like manaer `
and utwn like ynymenta or tPndece annually the commencement ot drillinQ oDeretione may be turther deferred tor successive Deriods of tweh•e (1?1 monGks j
earh during the primery term. Ttie DQYment or tender of rental may be made by the check or draft of I.e~see mailed te Lcasot nt
~'~t+~ . @~`CE.' r'1Qrida , or dolivered to Lee~r. or mailed or delivered to asid bank on or before euch date ot P$Yment. If auch hank (or sn}~
auccer+eor ~n1c) nh~uld fasl, liauitlate or be suceeeded by wnother bank, or for any reuaon fail or refuee to accept renta3, Lessee ehall not be held in default
for failure to make auch Dayment or tender of mntal unti! thirty (30) duya after I.esrar ehall deliver to I.eeeee a Droper recordable imirument, naminR
nnother bank an aRent tu rrceive such paymenta or tendere. If auch bank chancc~ or deductx s fee fur actinK ai+ deyoeiWry, or any other renaon, sueh charQe
Fhsil be tx~rne by l,eawr and ehall nuC stfect the validity ot the leaae. T1Ae down cas6 Dsyment ia con~ideration !ur t6ie lease nrn~rdinq to ite terma snd ehali!
not be all.,cated se mere reniaJ for a period. Ixnaee may et any time or times execu~e snd delicer to I~eesor or tv t6e deeiRnstcd depoaitory bank, or rlace of
r.rord, a rrlees:e or releanee coverin¢ any Dortiun or portiow of the lsnd tovered hereby (or any one or roore aones, fortnations or eubetancee thereLnder) and
thereby nurrender th+e leree ru to euch portion or portioos snd be relleved of sll obltgrtians ia rnnnection therewith, and tisereafter the rentale, if any,
paysble heieunder s6al1 be reduced tn the DroDvrtion tbat tlu ~+.~rfece ~ereaee covered herrby u redueed by eaid release or nleasea.
6. If af sny time or times durir.~ the ytimary term Leseee abnndone • well ~n a dry hole on swid land oz land pooled with auch land, or any part
thcreof, r,r if D~ductlon, having once been obtaSned t6erefrom, ehould ceaae frorn any cause, and i! in either eaae thia leeae is not otherwiae maintained, thu
feese eha!1 nevtrthelcwn temain in furee if yroductioa or opentiona tar drillinY or reworkinq on eaid land or land pooled with euch land, or any part thereof,
~ are ¢ommenced or resumed, or payment or tender ot mntaL ie commmced ot resumed, on or beton the rnntal payint[ date nrxt enaulnQ after the expiration
~ of ninety (901 daye t~vm the date of abaedonment of the well ~a a dry iwle or ceasation oi prodnction; provided, that no rentale or operatione s}ull Le
' nxeesaty t~~ ouintsin thie lease for the remninder ot t6e primar7 terru il sueh sbancMnment ot a weil u s dry hole or crasation of production oceun within
ninety 1'JO) days Drior to or durinY the last year o~ t6e ptimarq term. I[ sucb abandonment uf a well as a dry hale or ccssation of productton occurs within
ninety (90) dayn prior to or at eny time ~iter the exD~ntion of the DtimarS' term snd thia leene ie not otherwise msintained, thie leaee ~hsll nevcrthelen+
rrmein in foree it Di'aduction ar operatir,ne for drUlint or rewoeking ~re cnmaneneed or rnsumed on xaid lend or land pc.oled witi~ euch land, or sny part
therec,f, within ninetq Ib0) days after auch wh~ndonment or ce~ssrion of nroduction. Upon the expintion o[ the primary term or st any time or times
" thereatter ~chen thir lease ia not otAenvise maintaiued, tbla leue shal! rnnsin in force so lonQ a~ anp operetione for drillinR or rewcrkinQ sre proeccutzd
on anid land or land lwoled with such land, or anq ywrt iAereot, witl~ no ctas~tion ot mon than dinety (90) euaetrutive days, and, if they rayult in prvduc-
tion of oil, gae or other miaenl, eo lons ~s oil, ~u or ofber m[aer?1 1a produced.
i. In the event a~vell or aelL prodncias oil or =u 1n paping puaqtltiea sha~dd be brou~rht In on adjaceni land not more than 330 feet feom snd
drsininR the leaeed premiela, I.e~ee aare~s to drill snch otfset wdl or welL u a re~eoaably prudent opet?Lor wunld drill under the aame or similar circum-
xtancrs. When reGUired hy Leewr. I.weee wiU bury D+De Hnee below ordinary Dlow depth sad paq damage eanaed bq L,eaPee'e operation~ to QrowinQ crupn.
I.cg.sce shall have the righL at any time during the term ot thL le~se or withia one year after the termination o1 thie lea~e to remove aii Drupertiee srui
fixturea D~BCed by I.rseee on eaid land, ineludin~ the riRbt to dnw and nsno~s all e~sint ~rhetl~er fzem D~ucin~ or non-produein~ welk. No well shall be
drilled wit5in two hundred (200) teet of tbe D~ncip4! reyidtnce naw on ~aid Lud vritboat Lerwr's coxrenR.
8. The risfite of eithcr varty here~nder mty be ~asi¢ned fn w6ok or Is Dart, sad tbe provi~iona hereof ahall eztend ta their heirs, aucceeeora •nd
aesiIIne, but no ch?nge or div~ion in ihe ownenhip of the land or rentab or ro~alik~ or otber pa~ment bereunder or the riQht to reecive Rame, howevez
a~cumvlished, ehall operste to enirrQe the obli~~tio~• or dimiaish the rlthL of I.essee. No e6an~e or divieion in t6e ownenhiD or rittht to meive tentals,
roy-altje= ar uther psyfnent heRUndet shall be bindins npon I.u~ee for anr porP~ until ~ixty (60) daya after I~esate sh~J1 have been furniahed at I.casee'~
otfice at Dallais, Te:~s, w?th dulq recorded inatrument or iostrumrnb or certilled eoD~ t6trtot or other leRaJly anthenticaGed written evkknce at wch
chanae ut ownershfy eatistsetory tc~ Lnaee. In the event of tbe Aeath of ~ny pel~wa entitled to payments hereander. I,c+see ma~ pay or ttoder ~uch DaymonM
u~ :he devc,eitorp hwnk to the endit of the deeeued or the atttc ot the dees~ed until ~uch time ~s I,erar f~ tnrnbbed evWtnce ~ti~laetory to I,e~sec ot
the appointment •nd Qu~lification of ~n ezecutor or ~dmiaGtcstoe of t~e artate, it thera be one, ae~ evidence utiatictory W I.eMee ~r to the heirs or
de~~iaces of the dcceased. [f rt ~ny time two or tnorr yerson~ are eodt~ed to yartkipate in yw~ment~ hereunder. LeMee may pa~ or tender sueh payment~
j~intly to such Iurnon~ or W their Soint credit in the dep~ritoTy dditcnatetl herein ; or, at I.csnte'~ electtoo, the prrrDOrtlonatr qart or ~erta to wh1Ch anY
partieipant or p~rtieipaota msr be entitled may be paJd or tendersd to sueh ytrtitlDSnt or yarticipant~ ~epantelp or to tl~elr ~epirate eredit 1n ssid depo~itory ;
and psyment ar tertder W aA9 Dartieipant of hie Dortion. 3ointly or septntely, nhxll maintnin thus teaae u P~~ Ruch p~rtkipant. ln the event of uai~cnment
or auLleaee Eerect i~ whde vr in part, lubility [or bteach ot aoy e:prae or imD~~f`d oblipration hercnn~ier ehall reet e~cclusively apon the owner c,r ~nbk~+~er
rsho eommita auch breach. In the event ut an e.ariRnment c:f thie lease ~ to a xe¢r~wted ~rt~~ ~f~ lwnd, t payable Aere~roder
~n,/` .i I~ _
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