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In testimony whereof, I hereunto set my hand and affix the seal of said office the day last above written.

[SEAL.]

J. T. ROBISON, Commissioner of General Land Office.

Filed for record May 6, A. D. 1919, at 4.57 p. m. Recorded May 27, A. D. 1919, at 2.22 p. m.

W. T. HARRIS,

Clerk County Court, Wichita County, Tex.
By

Deputy.

THE STATE OF TEXAS,

County of Wichita:

I, W. T. Harris, clerk of the county court of State and county aforesaid, do hereby certify that the above and foregoing instrument of writing is a true and correct copy of an oil and gas prospect application, from Sam Sparks, dated the 2d day of December, 1918, as the same appears on record in the deed records of Wichita County, Tex., in volume 119, page 511.

Given under my hand and seal of office at office in Wichita Falls, Tex., this the 15th day of October, 1921. [SEAL.]

W. T. HARRIS.

Clerk County Court, Wichita County, Tex.
By LEMUEL DAVIS, Deputy.

COMMISSIONERS GENERAL LAND OFFICE, OIL AND GAS PERMIT NO. 3113, SAM SPARKS.

AUSTIN, TEX., April 30, 1919.

Whereas under chapter 83, approved March 16, 1917, Sam Sparks, of Austin, Tex., a citizen of the United States, did on the 2d day of December, 1918, at 8 o'clock a. m. file with the county surveyor of Wichita County his application wherein he made known that he desired to prospect for petroleum and natural gas that may be found within and beneath the surface thereof on certain 981.9 acres of land situated in Wichita County, the field notes of which are recorded in the surveyor's records of Wichita County in book 4, page 55, and more particularly described as follows:

"Beginning at the northwest corner of the Lucinda Meadow survey No. 6 and the NE. corner of the A. A. Durfee survey thence along the north line of said Durfee survey S. 66 30 W., 526 varas S. 42 W. 1,360 varas S. 40 W. 1,175 varas to SW. corner of said Durfee survey; thence S. 29 varas to a point on the N. line of L. Powell survey; thence along north line of said Powell survey S. 63 15 W. 954 varas to the NE. corner of T. E. & L. Co. survey No. 821; thence along north line of said survey N. 821 S. 68 30 W. 580 varas, S. 45 30 W. 186 varas, to the NE. corner of another survey in name of A. A. Durfee; thence along the north line of said Durfee survey S. 66 15 W. 1,527 varas S. 63 15 W. 1.200 varas S. 67 30 W. 1,175 varas, S. 75 30 W. 100 varas to the SE. corner of a mineral file by Porter Farrell; thence N. 42 15 W. 480 varas to NE, corner of said Farrell file, a point in the center of the channel of Red River; thence down said center of channel of Red River following its meanders as follows: N. 67 E. 1,895 varas N. 69 E. 700 varas, N. 76 E. 700 varas, N. 60 30 E. 1,000 varas, N. 47 E. 1.200 varas, N. 41 E. 1,500 varas, N. 48 30 E. 1,200 varas, N. 72 E. 1,050 varas to a point in said center of channel of Red River; thence south 607 varas to the place of beginning.”

Application of said Sam Sparks having been filed in the General Land Office December 6, 1918; and

Whereas it appears from the papers, documents, and records of the General Land Office that the area set out by said application is subject to prospect and development in the manner provided by the act aforesaid, and it further appearing from the statement in an affidavit executed by the said Sam Sparks that he does not hold or own any interest in any other permit or lease issued by the State of Texas and in good standing except interest in permits Nos. 2719, 2720, and 2776, and it further appearing that the said Sam Sparks has paid into the General Land Office the lawful sum of money for the area embraced herein as provided by said act:

Now, therefore, in consideration of the premises aforesaid and the obligations hereinafter named, I, J. T. Robinson, commissioner of the general land office of the State of Texas, do hereby issue this permit to Sam Sparks upon the following conditions, to-wit:

1. The owner hereof shall have the exclusive right to prospect for and develop petroleum and natural gas within the designated area for a term not to exceed two years, and for the second year the owner hereof shall pay another 10 cents per acre within 30 days after one year from this date.

2. The owner of this permit shall have the exclusive right to enter upon said land at all times during the life of this permit for the purpose of mining, drilling, and operating for oil and gas and to erect and maintain all structures, fixtures, pipes, pipe lines, and machinery necessary for the production, the storage, and the transportation of oil or gas.

3. Before the expiration of 12 months from date of this permit the owner of same shall in good faith commence actual work necessary to the physical development of said area, and if petroleum or natural gas is not developed within 12 months from date hereof the owner or manager shall, on or before 30 days after the expiration of said 12 months, file in the General Land Office a sworn statement, supported by two disinterested, credible witnesses, that such actual work was begun within the 12 months aforesaid, and that petroleum or natural gas has not been discovered in commercial quantities, and that a bona fide effort to develop same was made during the 12 months preceding the filing of said statement.

4. If at any time within the life of this permit petroleum or natural gas should be developed in commercial quantities the owner or the manager of such owner shall file in the General Land Office a statement of such development within 30 days thereafter, and thereupon the owner hereof shall have the right to lease the area described herein.

5. The owner of this permit shall drill all offset wells necessary to the full protection of this area, and upon a failure to do so the issuing authority may cancel this permit and terminate all rights of the owner herein.

6. If any statement made by the owner of this permit which was necessary to the issuance thereof was false or untrue in material matters, or if the owner hereof should fail or refuse to begin in good faith the work necessary to the development of the area herein within the time required, or should the owner hereof fail or refuse to proceed in good faith and with reasonable diligence in a bona fide effort to develop the area included herein after having begun the development, or if the owner should fail to apply for a lease within 30 days after the discovery of petroleum or natural gas in commercial quantities this permit shall be subject to forfeiture by issuing authority.

7. The owner of this permit shall not take, carry away, or sell any petroleum or natural gas found on the area described herein before such owner shall have obtained a lease thereof. For development purposes the owner of this permit may have for fuel, free of charge by the State, the wood on the area

covered by this permit; provided this free use of fuel extends only on such surface as the State may not heretofore have sold to another.

8. Within 30 days after the completion of each well drilled on the area included within this permit, whether a dry well or a producing well, the owner of this permit shall cause to be delivered to the general land office a correct copy of the log of each well showing the important formations passed through, the depth at which each such formation was reached, the thickness of each such formation, the water-bearing formations and the character of water therein, whether salt, fresh, hard, or soft, the elevation to which the water rose, the number of feet of casing set in such well and where placed, its size, and the total depth to which such well was drilled.

9. Before penetrating gas formations the owner of this permit shall exercise the utmost diligence and care in preventing the unnecessary waste of gas.

10. All developments in water shall be done, so far as practicable, in such manner as to prevent the pollution of the water.

11. Upon the abadonment of any well, whether dry or producing, the owner of this permit shall securely plug such well so as to prevent the escape of salt water and so as to prevent the entrance of salt water into the oil or gas bearing formations.

12. All the terms and conditions herein shall extend to the heirs, successors, and assigns of this permit.

In testimony whereof witnes the signature of the said J. T. Robinson, commissioner of the general land office of the State of Texas, and the seal of said office, this the 30th day of April, 1919.

[SEAL.]

Commissioner General

J. T. ROBINSON, Land Office of Texas.

Filed for record May 6, A. D. 1919, at 4.56 p. m. Recorded May 25, A. D. 1919, at 8.35 a. m.

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THE STATE OF TEXAS, County of Wichita: I, W. T. Harris, clerk of the county court of State and county aforesaid, do hereby certify that the above and foregoing instrument of writing is a true and correct copy of an oil and gas permit, No. 3131, given by commissioners general land office of Texas to Sam Sparks, dated the 30the day of April, 1919, as the same appears on record in the deed records of Wichita County, Tex., in volume 119, page 495.

Given under my hand and seal of office at office in Wichita Falls, Tex., this the 14th day of October, 1921.

[SEAL.]

W. T. HARRIS,
Clerk County Court, Wichita County, Tex.
By LENNA DAVIS, Deputy.

[Sam Sparks, assignment of permit, General Oil Co.]

THE STATE OF TEXAS,

County of Wichita.

Know all men by these presents:

That whereas the commissioner of the general land office of the State of Texas, by his certain oil and gas permit No. 3131. issued by the general land office of the State of Texas, on the 30th day of April, granted a permit to Sam Sparks, based upon the said Sparks's application filed on the 2d day of Decem

ber, 1918, before the county surveyor of Wichita County, and said application and permit is referred to and made a part hereof for description, and in which permit certain oil and gas rights were granted to the said Sam Sparks, 981.9 acres of land in Wichita County, Tex., on the waters of Red River about 15 miles northwest of Wichita Falls, fully described in said permit; and

Whereas Sam Sparks, while owner of the said rights in said 981.9 acres made a map and plat, and, after having regularly dedicated said land, filed the same for record with the county clerk of Wichita County, Tex.; and

Now, therefore, know all men by these presents, that I, Sam Sparks, for and in consideration of the sum of $10 and other valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, sell, assign, and set over all my right, title, and interest in and to said oil and gas mineral permit covering lots 2, 3, 4, and 5, in block 3 out of the Sam Sparks first subdivision, Red River Valley land, Wichita County, Tex., containing 80 acres of land unto the General Oil Co., and reference is here made to said plat now of record.

To have and to hold the same unto the aforesaid General Oil Co. the said oil and gas rights so far as the same relates to the said lots 2, 3, 4, and 5 in block 3 out of said subdivision.

In witness whereof, I hereunto set my hand at Wichita Falls, Tex., this the 31st day of July, A. D. 1919.

THE STATE OF TEXAS,

County of Wichita:

SAM SPARKS.

Before me, the undersigned authority a notary public, in and for Wichita County, Tex., on this day personally appeared Sam Sparks, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed.

Given under my hand and seal of office this the 31st day of July, A. D. 1919.
[SEAL.]
WALTER NELSON,
Notary Public, Wichita County, Tex.

Filed for record September 25, A. D. 1919, at 5.08 p. m.
Recorded October 3, A. D. 1919, at 2.30 p. m.

W. T. HARRIS, Clerk County Court,

By

Wichita County, Tex. Deputy.

THE STATE OF TEXAS,

County of Wichita.

I, W. T. Harris, clerk of the county court of State and county aforesaid, do hereby certify that the above and foregoing instrument of writing is a true and correct copy of an assignment of permit from Sam Sparks to General Oil Co., dated the 31st day of July, A. D. 1919, as the same appears on record in the deed records of Wichita County, Tex. (Vol. 130, p. 597.)

Given under my hand and seal of office at office in Wichita Falls, Tex., this 14th day of October, A. D. 1921.

[SEAL.]

W. T. HARRIS, Clerk County Court,
Wichita County, Ter.

By IVA HOLBERT, Deputy.

[Commissioner general land office. Permit. Oil and gas lease No. 3131.

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GENERAL LAND OFFICE, Austin, Tex., December 2, 1919.

Whereas on the 30th day of April, 1919, the commissioner of the general land office of the State of Texas did issue to Sam Sparks oil and gas permit No. 3131, covering a mineral survey of 981.9 acres, situated in Wichita County, Tex., about 18 miles north, 35 west of Wichita Falls, Tex.; and

Whereas it appears from the papers, documents, and records of the general land office that petroleum has been produced in commercial quantities on the area set out in said permit No. 3131, and upon formal request for lease and payment of $2 per acre on this area. lease is hereby issued to the said Sam Sparks.

Now, therefore, know all men by these presents: For and in consideration of the premises aforesaid and the obligations hereinafter named the State of Texas, acting by and through J. T. Robison, commissioner of the general land office of said State, under the laws of said State, does hereby grant and lease unto Sam Sparks, the area hereinbefore set out, for a term of 10 years, with the right of renewal or renewals, together with the right to enter upon said land at all times during the life of this lease for the purpose of mining, drilling, and operating for petroleum or gas, and to erect and maintain all buildings, structures, fixtures, pipes, pipe lines, and machinery necessary for the production, the storage, and the transportation of petroleum or gas upon the following conditions, to wit:

1. In addition to the $2 per acre already paid on each acre included herein the owner of the right herein conveyed shall pay a like sum annually hereafter in advance on the area included herein, which shall be paid on or before the expiration of such year during the life of this contract, and in addition thereto, the owner of the rights herein conveyed shall pay to the State of Texas, at the general land office of Texas, at Austin, Tex., a sum of money equal to a royalty of one-eighth of the value of the gross production of petroleum and shall pay a sum of money equal to 10 per cent of the value of all gas sold. Payments of royalty shall be made monthly and on or before the 15th day of each succeeding month during the life of this lease. Payments shall be made either in cash or by exchange on some bank in Austin, Tex., or by post-office money order or by express money order. When payments are made the owner of this lease or the manager for such owner shall accompany the remittance with a sworn statement of the amount produced during the next preceding month and the market price of the output and a copy of any pipe or pipe lines or tank receipt, check, or memoranda of amount paid out or into such lines or tanks. The books and account and the receipts and discharges of all lines, pipe lines, and tanks and gas lines and gas pipes connected with the operation under this lease and pertaining to the production, transportation, and marketing of the output shall be open to the examination and inspection at all times by the commissioner of the general land office or his representative, or any other representative of the State authorized by the governor or attorney general.

2. The value of any unpaid royalty or royalties and any sum or sums due to the State upon this lease shall become a prior lien upon all production of petroleum or natural gas produced upon the area leased to secure the payment of any royalties and sums due the State.

32141-23-10

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