The FD Prince Mineral Estates, being that same person that was associated with Smith County, Tyler County and having his Estate Probated in Navarro County, Texas, are held by the Prince Estate Trust. This Profit holding Estate Trust servers as the Principal Trust, as decreed, to support, the Private NEAL PRINCE CHARITABLE AETUS FOUNDATION, which provides the funding for various Art’s and Theater Programs in Texas. All producing and non-producing minerals are handled by the Prince Trust with complete detail inventories that date back to the early 1920’s. Our terms of our Leases is not to burden any Operator or Lease Owner, but to prevent any operator of unethical Professional Practices that would cause this Estate Trust to divert monies to Legal expenses and not to the sole purpose, as decreed by the Trustees. Please note that the vague Producers 88 Form (which was written by large Oil and Gas Companies, to favor their needs and not the Mineral Interest Owners) will not be accepted for reasons noted above. However, the NA Prince Natural Resource Asset Trust will accept proposed Leases or memorandums to be reviewed and discussed. Please note that in the State of Texas, by law, all Companies and/or landsmen proposing Leasing Activity must provide the NA Prince Natural Resource Asset Trust the opportunity to decline all offers of Leasing at will.
Any questions or concerns, please contact the NA PRINCE NATURAL RESOURCE ASSET TRUST.
NA Prince Natural Resource Asset Trust Associated Memberships:
National Association of Royalty Owners
15 West Sixth Street, Suite 2626
Tulsa, Oklahoma 74119
Texas Land and Mineral Owners Association
1005 Congress Avenue, Suite 360
Austin, Texas 78701
NOTICE: LISTED BELOW IS THE NEAL PRINCE TRUST OFFICIAL OIL AND GAS CONTRACTUAL LEASE THAT HAS ONLY BEEN OFFICALLY APPROVED BY THE BOARD OF TRUSTEES
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.
NA Prince Natural Resource Asset Trust Agreement Paid Up Lease Form
With 640 Acres Pooling Provision _____________________________ nma +/-
PAID UP OIL AND GAS LEASE
THIS LEASE is made between NEAL ADAIR PRINCE and SIR ROBERT RUSSELL HANS ROBYN VANOOSTEN MORRIS, as Co-Trustees, and or their successors, of the NA Prince Natural Resource Asset Trust Agreement, dated October 18th, 1999, whose mailing address and address of record is Post Office Box 2294, Corsicana, Texas 75151, also known as the Lessor, and [COMPANY], as Lessee, whose Address of Record is [ADDRESS, CITY, STATE, ZIP], whose telephone of record is XXX.XXX.XXXX and electronic mail address is [EMAIL@DOMAIN.COM].
- In consideration of a cash bonus in hand paid and the covenants herein contained, the TRUST, known as the Lessor hereby grants, leases and lets exclusively to Lessee the following described land, hereinafter called leased premises:
- Tract 1: [THE DETAILOF THE MENTS AND BOUNDS OF SAID TRACT THAT WOULD BE LEASED FROM THE NEAL ADAIR PRINCE TRUST, AS DO ORDERED AND DIRECTED BY THE BOARD OF TRUSTEES]
in the County of [NAME], State of [STATE], containing [ No. # ] gross acres, more or less (including any interests therein which Lessor may hereafter acquire by reversion, prescription or otherwise), for the purpose of exploring for, developing, producing and marketing oil and gas and laying pipeline, building a drill site, access road, tanks, power stations and structures thereon, to produce, save and take care of said products along with all hydrocarbon and non-hydrocarbon substances produced in association therewith. The term “gas” as used herein includes helium, carbon dioxide and other commercial gases, as well as hydrocarbon gases. In addition to the above-described leased premises, this lease also covers accretions and any small strips or parcels of land now or hereafter owned by Lessor which are contiguous or adjacent to the above-described leased premises, and, in consideration of the aforementioned cash bonus, Lessor agrees to execute at Lessee’s request any additional or supplemental instruments for a more complete or accurate description of the land so covered. For the purpose of determining the amount of any shut-in royalties hereunder, the number of gross acres above specified shall be deemed correct, whether actually more or less.
- Tract 1: [THE DETAILOF THE MENTS AND BOUNDS OF SAID TRACT THAT WOULD BE LEASED FROM THE NEAL ADAIR PRINCE TRUST, AS DO ORDERED AND DIRECTED BY THE BOARD OF TRUSTEES]
- This lease, which is a “paid-up” lease requiring no rentals, shall be in force for a primary term of Three (3) years from the date hereof, and for as long thereafter as oil or gas or other substances covered hereby are produced in paying quantities from the leased premises or from lands pooled therewith or this lease is otherwise maintained in effect pursuant to the provisions hereof.
- Royalties on oil, gas and other substances produced and saved hereunder shall be paid by Lessee to Lessor as follows: (a) For oil and other liquid hydrocarbons separated at Lessee’s separator facilities, the royalty shall be One-Fifth (1/5th) of such production, to be delivered at Lessee’s option to Lessor at the wellhead or to Lessor’s credit at the oil purchaser’s transportation facilities, provided that Lessee shall have the continuing right to purchase such production at the wellhead market price then prevailing in the same field (or if there is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; (b) for gas (including casinghead gas) and all other substances covered hereby, the royalty shall be One-Fifth (1/5th) of the proceeds realized by Lessee shall be delivered to the Lessor or non operator free of the costs of production from the prevailing market rate of the sale gross proceeds thereof, less a proportionate part of ad valorem taxes and production severance, or other excise taxes; and (c) if at the end of the primary term or any time thereafter one or more wells on the leased premises or lands pooled therewith are capable of producing oil or gas or other substances covered hereby in paying quantities, but such well or wells are either shut in or production therefrom is not being sold by Lessee, such well or wells shall nevertheless be deemed to be producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well or wells are shut in or production therefrom is not being sold by Lessee, then Lessee shall pay shut-in payments of fifty dollars ($25.00) per acre then covered by this lease, such payment to be made to Lessor or to Lessor’s credit in the depository designated below, on or before the end of each said 90-day period and thereafter on or before each anniversary of the end of each said 90-day period while the well or wells are shut in or production there from is not being sold by Lessee; provided that if this lease is otherwise being maintained by operations, or if production is being sold by Lessee from another well or wells on the leased premises or lands pooled therewith, no shut-in payments shall be due until the end of the 90-day period next following cessation of such operations or production. Lessee’s failure to properly pay shut-in payment to the mineral interest owner will make this said lease here on in null and void.
- All shut-in payments under this lease shall be paid directly to Lessor. All payments or tenders may be made in U$ currency, or by U$ check or by draft as such payments or tenders to Lessor or to the depository by deposit in the U.S. Mails in a stamped envelope addressed to the depository or to the Lessor at the last address known to Lessee shall constitute proper payment. If the depository should liquidate or be succeeded by another institution or for any reason fail or refuse to accept payment hereunder, Lessor shall, at Lessee’s request, deliver to Lessee a proper recordable instrument naming another institution as depository agent to receive payments.
- If Lessee drills a well which is incapable of producing in paying quantities (hereinafter called “dry hole”) on the leased premises or lands pooled therewith, or if all production (whether or not in paying quantities) permanently ceases from any cause, including a revision of unit boundaries pursuant to the provisions of Paragraph 6 or the action of any governmental authority, then in the event this lease is not otherwise being maintained in force it shall nevertheless remain in force if Lessee commences operations for reworking an existing well or for drilling an additional well or for otherwise obtaining or restoring production on the leased premises or lands pooled therewith within 90 days after completion of operations on such dry hole or within 90 days after such cessation of all production. If at the end of the primary term, or at any time thereafter, this lease is not otherwise being maintained in force but Lessee is then engaged in drilling, reworking or any other operations reasonably calculated to obtain or restore production therefrom, this lease shall remain in force so long as any one or more of such operations are prosecuted with no cessation of more than 90 consecutive days. And if any such operations result in the production of oil or gas or other substances covered hereby, as long thereafter as there is production in paying quantities from the leased premises or lands pooled therewith. After completion of a well capable of producing in paying quantities hereunder, Lessee shall drill such additional wells on the leased premises or lands pooled therewith as a reasonably prudent operator would drill under the same or similar circumstances to (a) develop the leased premises as to formations then capable of producing in paying quantities on the leased premises or lands pooled therewith, or (b) to protect the leased premises from uncompensated drainage by any well or wells located on other lands not pooled therewith. There shall be no covenant to drill exploratory wells or any additional wells except as expressly provided herein.
- Lessee shall have the right but not the obligation to pool all or any part of the leased premises or interest therein with any other lands or interests, as to any or all depths or zones, and as to any or all substances covered by this lease, either before or after the commencement of production, whenever Lessee deems it necessary or proper to do so in order to prudently develop or operate the leased premises, whether or not similar pooling authority exists with respect to such other lands or interests. The unit formed by such pooling for an oil well which is not a horizontal completion shall not exceed 80 acres plus a maximum acreage tolerance of 10%, and for a gas well or a horizontal completion shall not exceed 640 acres plus a maximum acreage tolerance of 10%; provided that a larger unit may be formed for an oil well or gas well or horizontal completion to conform to any well spacing or density pattern that may be prescribed or permitted by any governmental authority having jurisdiction to do so. For the purpose of the foregoing, the terms “oil well” and “gas well” shall have the meanings prescribed by applicable law or the appropriate government authority, or, if no definition is so prescribed, “oil well” means a well with an initial gas-oil ratio of less than 100,000 cubic feet per barrel, and “gas well” means a well with an initial gas-oil ratio of 100,000 cubic feet or more per barrel, based on a 24-hour production test conducted under normal producing conditions using standard lease separator facilities or equivalent testing equipment; and the term “horizontal completion” means an oil well in which the horizontal component of the gross completion interval in facilities or equivalent testing equipment; and the term “horizontal completion” means an oil well in which the horizontal component of the gross completion interval in the reservoir exceeds the vertical component thereof In exercising its pooling rights hereunder, Lessee shall file of record a written declaration describing the unit and stating the effective date of pooling. Production, drilling or reworking operations anywhere on a unit which includes all or any part of the leased premises shall be treated as if it were production, drilling or reworking operations on the leased premises, except that the production of which Lessor’s royalty is calculated shall be that proportion of the total unit production which the net acreage covered by this lease and included in the unit bears to the total gross acreage in the unit, but only to the extent such proportion of unit production is sold by Lessee. Pooling in one or more instances shall not exhaust Lessee’s pooling rights hereunder, and Lessee shall have the recurring right but not the obligation to revise any unit formed hereunder by expansion or contraction or both, either before or after commencement of production, in order to conform to the well spacing or density pattern prescribed or permitted by the governmental authority having jurisdiction, or to conform to any productive acreage determination made by such governmental authority. In making such a revision, Lessee shall file of record a written declaration describing the revised unit and stating the effective date of revision. To the extent that any portion of the leased premises is included in or excluded from the unit by virtue of such revision, the proportion of unit production on which royalties are payable hereunder shall thereafter be adjusted accordingly. In the absence of production in paying quantities from a unit, or upon permanent cessation thereof, Lessee may terminate the unit by filing of record a written declaration describing the unit and stating the date of termination. Pooling hereunder shall not constitute a cross-conveyance of interests.
- If Lessor owns less than the full mineral estate in all or any part of the leased premises, the royalties and shut-in royalties payable hereunder for any well on any part of the leased premises or lands pooled therewith shall be reduced to the proportion that Lessor’s interest in such part of the leased premises bears to the full mineral estate in such part the leased premises.
- The interest of either Lessor or Lessee hereunder may be assigned, devised or otherwise transferred in whole or in part, by area and/or by depth or zone, and the rights and obligations of the parties hereunder shall extend to their respective heirs, devises, executors, administrators, successors and assigns. No change in Lessor’s ownership shall have the effect of reducing the rights or enlarging the obligations of Lessee hereunder, and no change in ownership shall be binding on Lessee until 60 days after Lessee has been furnished the original or certified or duly authenticated copies of the documents establishing such change of ownership to the satisfaction of Lessee or until Lessor has satisfied the notification requirements contained in Lessee’s usual form of division order. In the event of the death of any person entitled to shut-in royalties hereunder, Lessee may pay or tender such shut-in royalties to the credit of decedent or decedent’s estate in the depository designated above. If at any time two or more persons are entitled to shut-in royalties hereunder, Lessee may pay or tender such shut-in royalties to such persons or to their credit in the depository, either jointly or separately in proportion to the interest which each owns. If Lessee transfers its interest hereunder in whole or in part Lessee shall be relieved of all obligations thereafter arising with respect to the transferred interest, and failure of the transferee to satisfy such obligations with respect to the transferred interest shall not affect the rights of Lessee with respect to any interest not so transferred. If Lessee transfers a full or undivided interest in all or any portion of the area covered by this lease, the obligation to pay or tender shut-in royalties hereunder shall be divided between Lessee and the transferee in proportion to the net acreage interest in this lease then held by each.
- Lessee may, at any time and from time to time, deliver to Lessor or file of record a written release of this lease as to a full or undivided interest in all or any portion of the area covered by this lease or any depths or zones there under, and shall thereupon be relieved of all obligations thereafter arising with respect to the interest so released. If Lessee releases all or an undivided interest in less than all of the area covered hereby, Lessee’s obligation to pay or tender shut-in royalties shall be proportionately reduced in accordance with the net acreage interest retained hereunder.
- In exploring for, developing, producing and marketing oil, gas and other substances covered hereby on the leased premises or lands pooled or unitized therewith, in primary and/or enhanced recovery, Lessee shall have the right of ingress and egress along with the right to conduct such operations on the leased premises as may be reasonably necessary for such purposes, including but not limited to geophysical operations, the drilling of wells, and the construction and use of roads, canals, pipelines, tanks, water wells, disposal wells, injection wells, pits, electric and telephone lines, power stations, and other facilities deemed necessary by Lessee to discover, produce, store, treat and/or transport production. Lessee may use in such operations, free of cost, any oil, gas, water and/or other substances produced on the leased premises, except water from Lessor’s wells or ponds. In exploring, developing, producing or marketing from the leased premises or lands pooled therewith, the ancillary rights granted herein shall apply (a) to the entire leased premises described in Paragraph 1 above, notwithstanding any partial release or other partial termination of this lease; and (b) to any other lands in which Lessor now or hereafter has authority to grant such rights in the vicinity of the leased premises or lands pooled therewith. When requested by Lessor in writing, Lessee shall bury its pipelines below ordinary plow depth on cultivated lands. No well shall be located less than 200 feet from any house or barn now on the leased premises or other lands used by Lessee hereunder, without Lessors consent, and Lessee shall pay for damage caused by its operations to buildings and other improvements now on the leased premises or such other lands, and to commercial timber and growing crops thereon. Lessee shall have the right at any time to remove its fixtures, equipment and materials, including well casing, from the leased premises or such other lands during the term of this lease or within a reasonable time thereafter.
- Lessee’s obligations under this lease, whether express or implied, shall be subject to all applicable laws, rules, regulations and orders of any governmental authority having jurisdiction including restrictions on the drilling and production of wells, and the price of oil, gas and other substances covered hereby. When drilling, reworking, production or other operations are prevented or delayed by such laws, rules, regulations or orders, or by inability to obtain necessary permits, equipment, services, material, water, electricity, fuel, access or easements, or by fire, flood, adverse weather conditions, war, sabotage, rebellion, insurrection, riot, strike or labor disputes, or by inability to obtain a satisfactory market for production or failure of purchasers or carriers to take or transport such production, or by any other cause not reasonably within Lessee’s control, this lease shall not terminate because of such prevention or delay, and at Lessees option, the period of such prevention or delay shall be added to the term hereof. Lessee shall not be liable for breach of any express or implied covenants of this lease when drilling, production or other operations are so prevented, delayed or interrupted.
- Top Lease Clause: In the event that Lessor, during the primary term of this lease receives a bona fide offer which Lessor is willing to accept from any party offering to purchase from Lessor a lease covering any or all of the substances covered by this lease and covering all or a portion of the land described herein, with the lease becoming effective upon expiration of this lease. Lessor hereby agrees to notify Lessee in writing of said offer immediately, including in the notice the name and address of the offer or, the price offered and all other pertinent terms and conditions of the offer. Lessee, for a period of fifteen days after receipt of the notice, shall have the prior and preferred right and option to purchase the lease or part thereof or interest therein, covered by the offer at the price and according to the terms and conditions specified in the offer.
- No litigation shall be initiated by Lessor with respect to any breach or default by Lessee hereunder, for a period of at least 90 days after Lessor has given Lessee written notice fully describing the breach or default, and then only if Lessee fails to remedy the breach or default, within such period. In the event the matter is litigated and there is a final judicial determination that a breach or default has occurred, these lease shall not be forfeited or canceled in whole or in part unless Lessee is given a reasonable time after said judicial determination to remedy the breach or default and Lessee fails to do so.
- Lessor hereby warrants and agrees to defend title conveyed to Lessee hereunder, and agrees that Lessee at Lessee’s option may pay and discharge any taxes, mortgages or liens existing, levied or assessed on or against the leased premises. If Lessee exercises such option, Lessee shall be subrogated to the rights of the party to whom payment is made, and, in addition to its other rights may reimburse itself out of any royalties or shut-in royalties otherwise payable to Lessor hereunder. In the event Lessee is made aware of any claim inconsistent with Lessor’s title, Lessee may suspend the payment of royalties and shut-in royalties hereunder, without interest, until Lessee has been furnished satisfactory evidence that such claim has been resolved.
- In the event a portion or portions of the land herein leased is pooled or unitized with other land so as to form a pooled unit or units, operations on, completion of a well upon, or production from such unit or units will not maintain this lease in force as to the land not included in such unit or units. The Lease may be maintained in force as to any land covered hereby and not included in such unit or units in any manner provided for herein; provide that if it be rental payments, rentals shall be reduced in proportion to the number of acres covered hereby and included in such units or units.
- At the end of the primary term, or (if at the end of the primary term Lessee is conducting drilling operations on the leased premises, upon cessation of such operations for more than sixty (60) consecutive days, whichever is later), this lease shall terminate as to all depths and horizons situated one hundred feet (100’) below the deepest formation drilled in any well drilled on the leased premises or on lands pooled therewith pursuant to this lease.
- Notwithstanding anything contained herein to the contrary, this Lease covers only oil, gas, and other hydrocarbons and only the rights to the depths drilled or the stratigraphic equivalent thereof, but down to and including 100 feet depth before the deepest depth drilled completed and producing, vertically and horizontally all depths below or specifically reserved by the Lessor, herein. This lease does not include coal, lignite, iron ore, or other hard minerals.
- This lease shall terminate at the end of the primary term except as to lands included within a pooled unit, or if such lands are not pooled, as to 40 acres for each oil well and 640 acres for each gas well (or such larger amounts as may be prescribed or permitted for oil well and gas well spacing under the field rules set by the Texas Railroad Commission) then being drilled or reworked or then producing in paying quantities. As to each well then being drilled or reworked, this lease, as to the stated acreage with respect thereto, shall continue so long as the drilling or reworking operations are continued with no cessation of more than 90 consecutive days. As to tracts upon which the drilling or reworking operations result in production, as to tracts producing at and after the end of the primary term, this lease shall continue as to each tract so long as production continues from the tracts or units with no cessation of more than 90 consecutive days. Each tract retained under the provisions of this paragraph shall be as nearly in the form of a square as is practical.
- Lessee agrees to and does by these presents indemnify and hold harmless Lessor, his heirs and assigns, from and against any and all damages, claims, liabilities, loss, cost and expenses, including attorney’s fees, arising out of any environmental spill, correction or treatment of the above described property, or any waste thereon. Lessee further agrees to pay the surface owner the reasonable value of the actual damages resulting to the surface of the land, fences, roads, tanks and other structures and improvements, livestock, trees, grass and crops caused by operations hereunder, and further agrees to restore the surface of the land to as near its original condition as may be reasonably done after the completion of each operation conducted hereunder.
- Within sixty (60) days after the execution of same, Lessor shall be provided with executed copies of Unit Agreements executed by Lessee, or dissolution of any said units. It is agreed upon by all parties that the Lessee acknowledges and agree that said party will be bound by the terms that if such dissolution occurs from such Unit Agreement or Leasehold outright, that the holder of such Leasehold will file a Release of this said Lease in the County Clerks Office of Cherokee County, Texas and said Leaseholder will notify the Lessor of the Instrument Filed of such dissolution filed within said County enabling the Lessor to maintain an updated current status of this said Paid-Up Oil and Gas Lease which this bearer holds.
- Lessee hereby acknowledges and agrees to notify the Neal Adair Prince Trust by Certified Letter when this lease has been Transferred, Sold or Assigned as a whole or as a partial Transfer, Assignment or a Partial Sale of said instrument to a new Lease holder within Ninety (90) days after the said Transfer, Sale or Assignment of this Lease. This Certified Letter will be issued by the Assignor, Transfer or Seller clearly stating the successors Name, Address of Record, along with their Legal Telephone Contact Number of the successor Leaseholder and the County Clerk’s Recording Stamp information (i.e.: Volume and Page of said Assignment) regarding the transfer of ownership of this Leasehold.
- The Lessee hereby acknowledges and agrees to notify within 45 days the Neal Adair Prince Trust using the United States Postal Service Certified Mail method of communication, by which any of the Leaseholder(s) of this said Lease has changed their going concern business address of record as fully disclosed to the Internal Revenue Service, other than the address by which is fully noted on this Lease. This provision grants the right to the Lessor the accessibility to the Leaseholder by means of Certified Mailings to inquiry on any issues as legally permitted by Law and as long as this Lease remains in force and effect until such time this Lease expires.
- The rental amount provided for in Paragraph No. 3, preceding, is sole for the calculation of royalty payments for shut-in gas wells under Paragraph No. 3 preceding.
- Notwithstanding the provision of Paragraph No. 3, proceeding, relative to a shut-in gas well, it is understood and agreed that Lessee shall not be entitled to hold this lease under the Shut-In Gas Clause provision therein set out for a period longer than two (2) years from time of shut-in.
- All sums due Lessor under this lease are payable to the Neal Adair Prince Trust, 425 East 58th Street, Suite 10-D, New York, New York 10022-2300, unless otherwise notified by the Neal Adair Prince Trust to the Lessee by Certified Letter of such address of record change as fully noted.
- The Lessee agrees and acknowledges that this lease shall be void and null, unless the counter-execution signature by of Lessee on the provided Two (2) Original Paid-Up Oil & Gas Lease within Thirty (30) days of Lessor’s date of execution of said lease.
- The Lessee agrees and acknowledges that this lease shall be null and void, unless Lessor receives the bonus consideration due to the Lessor’s address of record within Thirty (30) days of Lessor’s date of execution of said lease.
- Notwithstanding anything contained herein to the contrary, whenever the fraction of one-eighth (⅛th) appears herein regarding royalty, it is hereby deemed changed to One-Fifth (1/5th).
- The Legal Lease Owner hereby accepts and acknowledges that if any commercial production is derived from this Contractual Agreement, then all sums will be issued to the Trust on, or before, each calendar year end, regardless of the sum amounts. Furthermore, if said Lease owner produces commercial qualities of production from this said Mineral Tract or Pooled Unit, the Lessor has the Absolute Legal Right to be paid directly by the purchaser if the said Lessee fails to provide the sum amounts to the Lessor on a yearly basis, by which said Lessor will notify the Operator and the Purchaser, with the intent of the Lessor said election, is to be conveyed in written form, and said communication will be delivered by the United States Postal Services Certified Mail method of delivery to both parties of concern.
- Notwithstanding any other provisions of this Lease, Lessor shall not be required to pay, and Lessor’s royalty shall not be reduced on account of or charged with, directly or indirectly, any costs of making the products produced hereunder ready or available for market, including but not limited to the cost of transporting, treating, compressing, dehydrating, or processing oil, gas, or other gaseous or liquid hydrocarbons, it being the duty of Lessee to make same marketable and transport same to the purchaser thereof free of all costs to Lessor, excepting only taxes applicable to Lessor’s share of production which may be paid by Lessee.
- All royalties that may become due hereunder are to be paid to Lessor. Accounting and payment to Lessor of royalties from production of oil and gas herein provided shall commence no later than ninety (90) days after the end of the calendar month in which a well completion report is filed with the governmental agency having jurisdiction. Thereafter, unless otherwise specifically provided herein, all accountings and payments of royalties shall be made on or before the last day of the second calendar month following the calendar month in which the production occurred. Unless otherwise expressly provided herein or by state law, any royalties provided for in this Lease which are suspended or not paid to Lessor within the time period specified therefore shall accrue interest at the lesser of (i) eighteen percent (18%) per annum or (ii) the highest rate permitted by applicable law from the due date until paid. Acceptance by Lessor, its successors, agents, or assigns of royalties which are past due shall not act as a waiver or estoppel of such person’s right to receive or recover any and all interest due thereon under the provisions hereof, unless the written acceptance or acknowledgment by Lessor to Lessee expressly so provides.
- This Lease is executed and delivered by Lessor and accepted by Lessee without representation or warranty of title, or the status of the leased premises, by Lessor, either express or implied, and is expressly made subject to all valid and subsisting reservations, restrictions, easements, covenants, conditions, liens, rights-of-way and other encumbrances and rights filed in the records of the office(s) of the County Clerk(s) of the county or counties in which the leased premises are located, and all encroachments, protrusions, overlapping of improvements and other matters visible on the ground. Lessee, at its option and only after calling the matter to the attention of Lessor in order that Lessor may pay the same if it desires, may discharge in whole or in part any tax, mortgage, or other lien upon the leased premises or any part thereof, or may redeem the same from any tax sale or adjudication, and shall be subrogated to such lien with the right to enforce the same. If Lessor owns an interest in the oil, gas or other hydrocarbons on, in, or under said land less than the entire fee simple estate, then all payments to be made to Lessor hereunder shall be reduced in the proportion that its interest bears to the whole and undivided fee and in accordance with the nature or estate of which Lessor is seized. Lessee acknowledges that a portion of the leased premises may be subject to a prior oil and gas lease. This Lease shall be subordinate and subject to any prior lease for as long as, and to the extent that, the prior lease remains in force and effect according to its terms.
IN WITNESS WHEREOF, this lease is executed to be effective as of the date first written above, but upon execution shall be binding on the signatory and the signatory’s heirs, devisees, executors, administrators, successors and assigns, whether or not this lease has been executed by all parties hereinafter named as Lessor.