HomeMy WebLinkAbout2277 J . _ , - y 253594 ~o
Pnd~Ken 88 19/TO! \1itA P~¦.un~ Pn~vui.ia lla~lerw+u~ Rr..tAus--Jaaks.~a. at~uwippi /
~fissau~ppi. AlabYna. Fk,ricl~
OIL, GA.S AND MINERAL LEASE f`~ ~,s
rriis ~cars~fia+~-r aude t' 1~Lfirr1 _ d~y „r Maroh le_~, e~eM~
A Partnership oonsis n~ of _Mr. Norman Purvis, Mr. 8obert M. Chappell,_
Mr. 8urney Chappells Jr.~ and Candor Hos~er~r M1211 Ino. hersin represented
by its Fresident 8obert L. Liles and Margaret ~,iles, secreta~.
,ecs~,~ ,w,,,r,Aa,, on~ ,wlrne, .,,dress ,s: Boa 6~_andort North Carol~--- _ .
and shell 011 ComparLY P. 0. _ BoZ 60193 NeW 07c'lean8~__~a~~___ _ ,~,.u~, ~~•~~~ss~Tt~:
n~.~ar.~~„~, „r _ 10._00 _and_more - - - ~.zuR. ~~ri~
~~f whicA i: 6ereA~' ackrn~wledeed. ~nd o( tAe cti~~'rnants and uYretmrnts lrscee hrrrinaGer tvatrined. d~~ec Atrrhy Krant. Iraxr and Irt uuto lesset the land
c~~~errcl Aerchy fur tAe ~arp~srs anJ w•ith tl~r eicl~t~i~'e riXAt of rapl.~rinR, Sri11iuR, mininK +Mi uprrat~nK (~~r, {x~Kl~ain~ uid uwning ~~il, e~s, sulphur and all uthrr
mnn~rals ~whrlher or n~•t similar t~. tM~se menti~med), lugrlArr with thr riKht lo tnakr sunrYS un ~aid land, !ay pepr linrs, a~tablisb Ym1 utilize (acilitirs (or
.urface oa suFxsurf~ce disp~sal u( ult water. rnnstruct made aud bridKrs. di~ c.u~als. build tanks. ~~wrt ~taU~~ns. p~a~•r linrs. trlrphcne Gurs. tmpM~yee iw~uses
.~nd uthtr sttuctures ~x~ ~sid 1and, necessap• ur usrE~d in Irsser i uperatiuns in r:plurinr, drilli~R lui, pr~xlucing, trr.?tinx, sh~rine and trx~up~rlme minrrwls
pn~duced (rum thr land avvrta~l Aerehy or am• othr~ larnl adjacent therelu. 'ILe la~, cn~~rrrd ha7rAy, Aerein a~alled "said land", is l~Kated in t6e
Cu~u~ty of S~• I+l~~.e State a( Fl,orida and is deutibed as (uRvws:
ToKnsh~ 6 South 8an e 8 East
See on ~
" T F~ ~ F1..0 R 1 D A~ DOCUMENTARY =
~ OOCUMEN ARY STAMP tAx
~ ~ DEPi. ~F REYFNUE , FLORi A SUR T~X ~ r~ t
~ _ ~a. _ :ar-s•~s ~ • ~ 0 Z. ~ ~ ~ ,u~. ~ur.~•~a P` ~ ~ ~ 0 =
^ ' ~ ~ _
o = ~IIn2 , ~
tlrtaslE 100.i0
7'his lexse also rnvrrs and includes, in additi~.n M that ab~~ve described, aU land, if any, rnnti~w~~u or adjacent to ~~r adH.ining the laad above describrel and
la) rnrned or claimed by lesx~r by limitati~w, prescription. possessio~. revtisioa or unrernrded instrummf or (b) u to ~.hicA lesxx 6u a weEnence rieht of
arquisition. I.essor agrees to e:ecvte any supplemmtal instrumrnt requated b>• lessee for a nwre cr~mplete or accunte drscripti~m uf said land. For t6e pur-
~xe of drtermining the amount uf any Fr~nus, delay rmtal nr uther pa»nent hereunder, said land slull be deemed t~ a~ntaiw ~~O ~cres~
~.•hether actually a~nuining m~xe ~r less, and the ahorr recital ~~f acrnge in an~ tnct s6a11 he deerord to be tbe trNe acrraAe therevf, Le:snr accepts the
~~nus and agrees to accept the drla~ rental u lump sum cv~nsidentions fot t6is lease and all riKhts, and options lxreunder.
2. Ualas sa~ner terminated ~~r I~mger kept in fnrce undn ~.thet pmvisions hera.f, this leasr shall rrmain ia (nme f~~r a term of trn I10? ya-ars (n~m [he
date hermf, bertimftn called "prioury• terni', and u bng thnea[ter u operations, u 6ereinaEtn deCmed, are rnnducted up.n said Iand with m cessatwm tor
mure tlnn ninety (90) consecutive days.
3. .ts royaky, lesste rnvenants and agrees: (a) Tn deli~•er tu thr credit ~d Itss~~r. in the pipe line tn N•hich lesser may cr.nn~ct itc w~ella. the equal ~~ne-
eighth put oF all oil pnduced and saved bY 1'csee fn,m said land. u~ fmm timr M time. at the upti~m ~.f lessee. tn pa~' lessnr tlie a+~rrier p.sted market pricr
~~f sucb onnei`Alh part of such uit at the w•clls u oE the daY it is run to the pipe line or st~~rate tanks, lessor's interrst, in rither case, to brar one-eiRht6
.~f the a~st of treating oil to render it marketable pipe tine oil; (b1 Ta paa~ lesu~r .m ~as and casingLeul 2as pnduced (n~m said land (I) when sold lessee.
unrrig6th of thr amount rcalized by lessee, a~mputa~l at the muath of tht well, or (31 wbrn ased hy lesxe ofI uid land or in t6e rtunuhdure o( Q+w~line or
~~ther pmducts, the mxrtet vahle, at thr m.~uth nf the w•rl1, of unr-riRhth of such gu and casinghead Qu; (c? -So pay les,wr oo all uther minrnk mined and
marlceted or utilized M• lessce (mm s~id land. ~~rte-tenth rithes in 4ind or value at thz v~~rU or minr xt lrssee s eleetion, rnYpt that .M sulnhur mined and marketed
the n~~alt~• :hall Ae ~~ne dullar (E1.001 prr I/M~ ~~M. IF, at the e:piration nf the primaqr term ~x at any time or times therriftrr, there is an> wcll on sani land ~~r _
~~n lands vrith vehich s:ud land ~x any portion therev~f hss bten puoled, capabk of producinK Ku or any ~~ther minera! awercd Aereby, and all such wells are
shut-in, this lase slull, aevertheless, rnntinue in (orce u thnugh opcntions n•ere beinR a.nducted ~m said land fur s~~ k~ne u w•elLs are shut-in, and
thereafter this lrue may he mntinued in force at if no shut-in had occurred. I.essee c.n•e+oants -and agrees to use reu~xuble diGgence to poduce, utiliu, or
mirket tbe mincrak capable nf bein~ pmduced fn.m said vrells, hut in tAe exerrise of such diligrnce, lessee shall n.K be ublig+ited to ~nct¦11 or fumish facilities
~~ther than vicell facilitirs and ordinary lrase (acilities of flow linet, separator, and Iease tank, and sball nnt bt requirrd to settk lah~x tnwble ~n N. market
Kas upon tem~s unacceptabk M lessee. If, at anY time ~r times after the e~intiun o( tA~e primary tecm, all such w-ells are shut-in (or a period of niaety can-
src~ti~~e da?•s, and during such time t6ere arc n(, uperatinns on ssid 1and, then at or 6eEore the e~iration of uid ninety day perk~d, kssee shall par ot
tender, by chect or dnft lessee, u m~alty, a sum eaual to the amo~mt of annual delay rmtal pn~~ided for in tha teau. I.esset shaU make h7ce ~xymenb
~,r tmders at nr fiele.re tAe end o( rach anniversary uf the emiration nf said ninety day perN~d if u~x.n such anniversary this leace is fi'ine ccntmueel ~n
iurce sokly bp reas~m l~E ~~I! pfOVLfNMS ~~f this paragnp6. Each such payment or teuder shall be madc to t~e parties w6o d tbe time of paYmmt +*onld
tx entiekd to recei~e th~ rm•sllies srhich w~nuld be paid under this lease if the wdls w•ere producing, and mxy be depiaited in a depository bank provided Eor
bcl~w. PIot6inA herein slull impair lesset s ri6ht to relrue u pmvided in wnAnph S 6ercuf. [n evrnt ut assigamrnt of tUis Iris~ in w6ole or in 9art, I'ubility
fur payment bereunder shall rest e:clusivdy on lhe l6m ovmer or owne+s of this lease, se+•erally u to acreaRe owned b~~ eacb.
Lexsee is hereh~• granted the riyht, at its optx.n, to pcx~! ~~r unitiu all o~ any part of said land and u[ this lease u u~ anr or :!1 minrrak or 1w~rizuns :6ere-
under, u~itA other I~nds, lease ~r leases, ur pnrtion or tx~rti.uu therenf, or minenl or h~rimo thereunder, so u to establish mits rnntaininR aat more than 80
sunc~e acres plus 10`~ acrra;e tnlennce; pm~-ided, Iw.we+•n, a unit may be establishrd ~r an eYisting unit may be enlar~ed to cw~tain nnt mnre lhan B~0
acres plus ]O'~ acreaye tnlerance, if unitized onh• u to tCU nr nnly u to Rat and liquid h>:drur~rbuns ImndMSate1 w6ich are m~t a liquid in tAe suhsurface
resen-oir. If larXer units arc req~ired, under any Rm~emmental n~te or i~dcr, for the dnlling oi nperatiun of a well at a resular kicatirm, or for obtaininx
manimum a11oN~able. Fmm an~• w-ell to Ae drilled, drillina, nr alread~• drilled, any such unit may be estaLlisiKd ur enlarged, to a~nform to the size reqnired Mr
cuch ~»emmental order or tule. I.assee shalt e:creise said uptiun u to rach desired unit by eiecvtina an insWmrnt identif}inR such anit aod ~ling it for
recrxd in the public office in w•hich this lease is recorded. Each ~f said opti~ns may be e:ercised by {essee fmm time t~ time, aad whetber before or aker
~ pn~ducti.m hu been rstahtished either ..n zaid land nr on the p~Aion oI said land i~cluded in tYx unit ur on dher land unitiud thetewit6 and any such ..nit
mar ioclude ~ny w'ell to bt drilled, t~rin; drilled or aUeady n~mplMed. A unit established hereunder sFull be ~•alid and efk~ct~re for ~11 pnrposes nf this
Ir.~se e~m tMuKh there map be land ~r minenl, m}•alh~ ~x leuelr~ld interests in land within the unit Nhich are nd pa~led ~u ~witized. I?ny operatwrts ~vn-
ciucted on any part ~f such unitiud land shall Ae nxuidned, fnr all purpnes, except the pa~-ment o( myalty, operatinres cYx~ducte~ undrr this leaz~. Therr
chall M alkicated to the land n~~•ered b>~ this Irase inrluded i~ any such unit that pmpurti.m o( the h~tal pn~ducti~m u( unitizrd minerals icom w~ells in the
unit, after deducting aaY used in ltase or unit ooenti~~ns, which [he numt~er o( surface acros in the land nwered bv this least iocluded in ~he mit br:vs to tbe
t~~ta! namher of surface acres in the unit. The pn~ducti~~n w all~~rated shall be n~nsideced f~r all purpnes, includinA the pa~~nrnt m delivery ~d nq-ahy, merridinR
n~~alh-. and aay ~~lher pa>'ments nut nf pr~~ductinn. t~~ tx fhe rntire pr~~ducti.m unitued minenls trom ihe piRi~m uf said land rn~•ered lxreby and included
in such unit in tbe ume mannn u tlr~uKh p~~~~~d (rum said land under the terms of this ?ease. The ~1NTtf ~~f thr re~~ersionaq• estate o[ any te~m myaltY
I or minenl estate aqrees that the accrwt uf myalties punuaat G. this paraRnph ur of sAut-in n»~rlties from a~rell on the unit shall satisfy any limitation oE term
i requirinR pn.duction oE oil or p,as. Tbe [ormation nf such unit s6a11 n~~t ha~•t the effect nl chan~paR the oN~nership of any delay rentrl or shut-in production
n~~alh• which may hccome Wyable under this Irue. l~either s?iall it impair thr ~iRht of lessee tc~ release fn.m this lease all or any pcxtion of said land, e:ceot
that lessee may not so releue u tn lands within a unit while t6ere arc opentions thererm for unitized minerals unless all prx~led leasrs are rrleased as to
lands w~ithin the unit. l.essee may d'usuh-e any unit establisl~ed 6ereundn 1y filin~C for remrd in the public o(fice w•herc this lease is ren.rded a declaratMin tu
that effect. if at that time no uprratGms arr lxin¢ a.nducted tt~ne.~n fur u~itized minenls. Sahiect t.~ the pn~visN~m of this pnraXnph 4, a anit ~~nce
establisbed lxreunder shall remain in fnrce x~ lonY u any lrase subject theret~ shxll remain in force. 1 unit may be w established, mcxiified or diswla'ed durin~
the li(e nf this lease.
5. If ~perations ue nM rnnductcd on uid tand un or }xfore the first anni~•ersary date hereof, t6is leau shall tertninate as to both ptrties, mless lessee
nn nr hefore said date shall, subject to the Eudher pmvisinns hermf, pay or tender ta lessor or to lessnr s crcdit in the ~
i Candor B~k CanrLr~N.o.r_t.h ~ar~.l.i.~ .
~r its success~n, which shali c~ntinue u the dep~.sit~q-, reAardless of chanRes in nwners6ip of defay renfnl, myalties, or ot6er mrx+e~s, tht sum of
g ~20 ~ , w~hich shall opente as dela}• rrntal and mver Ihe pri~'i{eAe uf de[erring nperations fnr one year frum said date. In like
mannrr and up>n like p~?ments nr tenders, operations ma~~ he furtAer defencd fur like perirxls uf one ye-at eac6 during the primap- term. If at any time
t}wt Irsser pa>s ut trnders drlay rrntal, ro}alties, or other rm~ncws, tw•o or more parties are, or daim to Ae, mGUed tn teceive same, lessee may, in lieu n( any
~dht~ meiM~d nf pa ymmt herein pmvided, pay ~~r tender such rental, mpaltits. ~rc other m~.ners, in the mannrr herrin sprcified, cithn r~inth• to snc6 parties nr
,eparately to e~ch in acc..rdrnce w~ith their respecti~'e ownershim them~f, as lessee ma~• elecF. Any pa?~nmt hereunder may be madr hy chect ur dnft of lesste
drpKited in the mail or deli~~ered b~ lesv~r or to a dcpnsiton• hank oc. or 1xfo~e the lut date (nr ~a>ment. Said delay rmtal shall he app~rti~~nabie ac to
caid land ~.n an acrcagt F~.+cis, and a(ailure to maki• pn~per pa>ment or tender uf dday rt~ntal u tu an~- portion ~d said land or as to ant• interest therein
cha11 n~~t af[ect this leace as tn any p~rtinn nf said land n:LC to any interest therein u to w~h;ch pmper paymmt ~~r tmder is mada Any~ payTnrnt nr trnder
which is made in an attempt to makr pmper p»~nmt, hut Which is ermnmus in wlyde or in part u tn padies, amounts, or depcnitun•, shall neveRhelesc he
cu(fitimt to pre~•ent termination oF this least and to ertend lh~ time within which oprratinns nwy be amducted in the same manner as tlweu~h s pmper
pa~mrnt had t+cm made: prm-ided. h~~w'ner, leuee shall rnrrect such ernir within thirty 130) da)s after lessee has rrceived writtm nMice thermf fmm
leca~r. Lessee mav at an~• time and (rnm time m time exectrte and deGva to lew~r or file fnr rm~rd a rrietse o~ rcleases of this lnsr ws to aw- part nr all
~~f said Iand or nf ana' mineral or }ririzon thereu~det, and threbv he relievcd nf all obligations as to tht relrued acrcage ~r interat. if this Irue is sn ro-
Ira.rd as ui all miner.~ls and hnriznns under a p~Ri~m uf said land, the delar rrntal uid uthn pa±~nrnfs rnmputed in acc~rdance therew-ith shall thereupun 6t
~ reductd in the pn~portinn that the acreage released bein tn the acreaRe w~hich was cn~~ned M' ~~s lease immediately pri~~r tu suc6 releue.
! 6. It at any time or times durin¢ the primaq• term nperations are rnnduded na uid land and if al! opentH~ns a:e discontinucd, this leue shall thereafter
i t~rminate ~>n its anniaersap• date next fnUnw-~nL the ninetiNh day after such disnrntinwnce unless nn or be4ure such anniversaq• date lessee rither (11 rnnducts
~.pewti~ms or (21 rnmmences nr resumes t6e payment or tmdn n( delay- rmtal; pr+~vided, hnweti•er, ~f such amirersan` date is at the end nf the Primary tetm,
•~r if thrre is m~ further anni~ersan' date n( the'primary term, this Irue shall terminate at the end of such term ~h r.n the ninetieth day aher disc~mt~m~anee
~ ~~f all ~~penti~~s, whiclx~~er is the later date, unless ~m such later date either Il) lesxe is rnnductinR ~P~*a~N~m or t6e ahul-in well pro~isi,~ns o( par~-
Krap6 )~~r the prm~isu~ns of paraRraph 11 are applicabl~. N'henevn ~ued in this lease the wurd °npentions° shall mran operatio~u for and any n( t~e fo!- .
` 4~w~inA: dnllinR. tatinX, completinf;, re~a•orkinR, rec~.mpletinR. deepenin~, p1uKICinR back or repairing of a wdl in search Grr n~ in ao rr~deaaor to obtain p~o-
~ ducti..n ~d .~il, Kac, sulphur or ~rtAer minrnb, e:rnntin~ a mine, pn+ducti~m ~d ~NI. Ras, sulphur nr dher mineral, whKher or o~K in pa~inR quantities. •
( 7. Lesaee shall hare thT ~ue, (ree fn.m nhalty. ~ watn, nther than fmm IcYSOrs wells, and of rril and Ras pnduced (mm uid land in all nplfilNMf ~
~ h~rrunder. Lesser shall fure the riRM'at any time b~ remr-e all mac6inery and (iriures placed ~m said land. includinq the rifht tn drww~ and rerm~~r caunR. :~n
f .~ell shall he driiled ntarer than 200 (eet ui the M.use nr b~m n~w on said land vrit6out the mnxnt nf tbe lesw~r. I.euee shall paY 4or damaR~ ~+~~+s~'d h9' ~ts ~
I ~~ptratNms tn fGnmin~ cmps and timber .~n said laqd. '
~ . soaK 213. P~~ 2~ ~ ~ 4 .
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