15-01 Non-Drilling Oil & Gas Well Lease - Gibson & Assoc

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4. ROYALTIES. In consideration of the promises, the Lessee covenants and agrees: (A) To pay Lessor one-fourth (1/4th) royalty for oil produced and marketed fi.om the premises. (B) To pay to the Lessor, as royalty for the gas produced, marketed and used oft the premises, including casinghead gas Or other gaseous substance, the sum of one-fourth (1/4th) of the net amount realized by Lessee computed at the wellhead fi.om the sale of such gas substances so marketed and used, measured in accordance with Boyle's Law for measurement of gas at varying pressure, ,on the basis of l0 ounces above 14.73 pounds atmospheric pressure, at a standard base temperature of 60 degrees Fahrenheit and stipulated flowing temperature o£ 60 degrees Fahrenheit, without allowance for temperature and barometric variations, less any and all Third Party.chm-ges for marketing, gathering, transportation, compression or other like costs paid by or charged by Third Parties to Lessee to deliver the gas for sale. (C) Lessee to deduct from payments in (A) and (B) above fi-om receipts of proceeds by Lessee, Lessor's prorated share of. any tax, severance or otherwise, imposed by any government body.. 5. PAYlVIENTS. All money due under this lease shall be paid or tendered to the Lessor by check, made payable to the order of and mailed to City of Lakewood, at 12650 Detroit Avenue, Lakewood, OH 44107: Attn: and the said named person shall continue as Lessor's agent to receive any and all sums payable under this lease regardless of changes in ownership in the premises until delivery to the Lessee of notice of change of'ownership as hereinafter provided. Such payment or tender of'any payment' due under this Lease and properly addressed and mailed or delivered to the Lessor on or before the paying date shall be deemed payment as provided herein. Payments to Lessor of' royalty for gas and/or oil marketed during any calendar month to be on or about the 30th day after receipt of such funds by the Lessee..Lessee has the right to adjust the monthly payment to a quarterly payment when the monthly royalty payment is less than l~if~een and 00/100 Dollars ($15.00) per month for two (2) consecutive months. 6. SHUT-IN PAYMENT. In the event the well is a producing well and the Lessee is unable to market the production therefrom, or should production in paying quantities cease for a continuous period of six (6) months from the well, or should the Lessee desire to shut in the well, the Lessee agrees to pay the Lessor, commencing on the date seven (7) months fi-om the cessation of prOduction, o~ the shutting-in of the well, an advance royalty as shut-in payment of Fifty Dollars ($50.00) per month for each month thereai~er during which no gas or oil is produced, marketed and sold off the premises for so long as Lessee desires or until the well is .... plugged and abandoned according to law. Lessee shall remove its equipment and plug and abandon the well within one (1) year from the last shut-in payment or royalty payment. 7. FUIJT. CONSIDERATION. The consideration, land rentals or royalties paid and to be paid, as herein provided, are and will be accepted by the Lessor as adequate and full consideration for all the rights herein granted to the Lessee. 8. APPROVAL. Lessee agrees to locate and maintain production equipment and meters in or directly adjacent to the existing wellhead vault unless otherwise required by the gas