This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Agreement made and entered into --------- by and between A. B., of the
--------- County of --------- and State of ---------, Trustee, of ---------, hereinafter called lessor (whether one or more), and C. D., of the --------- County of ---------,
State of ---------, hereinafter called lessee,
Witnesseth, that the said lessor, for and in consideration of one dollar, cash in hand paid, receipt of which is hereby acknowledged, and of the covenants and agreements hereinafter contained on the part of lessee to be paid, kept, and performed, has granted, demised, leased, and let, and by these presents does grant, demise, lease and let, unto the said lessee for the purposes of mining any and all minerals in their entirety, and operating for oil and gas, and laying pipe lines, and building tanks, towers, stations, and structures thereon to produce, save, and take care of said products, all that certain tract of land situated in the County of ---------, State of---------, described as follows, to-wit:
Bounded on the north by the lands of ---------; bounded on the east by the lands of ---------; bounded on the south by the lands of ---------; bounded on the west by the lands of ---------, and containing ---------acres, more or less.
It is agreed that this lease shall remain in force for a term of five (5) years from this date, and as long thereafter as any mineral, oil, or gas, or any of them, is produced from said land by the lessee.
In consideration of the premises, the said lessee covenants and agrees:
(1) To deliver to the credit of lessor, free of cost in the pipe line, barrels, or tanks, to which he may connect his wells, the equal one-eighth part of all oil produced and saved from leased premises.
(2) To pay the lessor one hundred dollars each year in advance, for the gas from each well where gas only is found, while the same is being used off the premises, and lessor to have gas free of cost from any such well for all stoves and all inside lights in the principal dwelling house on said land during the same time by making his own connections with the wells at his own risk and expense.
(3) To pay lessor for gas produced from any oil well and used off the premises at the rate of one-eighth royalty for the time during which such gas shall be used.
(4) To pay to the lessor for all minerals other than oil and gas, when mined and return sales are made to the lessee, ten cents per ton or such royalties per ton, as are customarily paid in the State of ---------; this payment to be made in lieu of rentals, as in case of oil or gas.
Lessee agrees to begin a well upon said premises within One Year from this date, unavoidable accidents and delays excepted, or thereafter pay to lessors rentals as hereinafter provided until a well is completed or the property hereby granted is re-conveyed to lessors.
When requested by the lessor, lessee shall bury his pipe lines below plow depth.
No well shall be drilled nearer than 200 feet to the house or barn now on said premises, without the written consent of the lessor.
Lessee shall have the right at any time to remove all machinery and fixtures placed on said premises, including the right to draw and remove casing.
In the event a well has not been begun on the premises within one year from date hereof (unavoidable accidents and delays excepted), the lessee may thereafter pay a yearly rental of ten cents per acre, payable quarterly in advance until a well is completed, which payments for delay in completing well may be made direct to --------- or deposited to ---------credit in the ---------
Bank ---------which payments shall fully and completely extend this lease from time to time until a well is completed, and lessors agree to accept said payments of rentals when made and to mail receipts for same to lessee.
In witness whereof, etc.