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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.

By

W. T. HARRIS, Clerk County Court,
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, Tex.

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

3. The owner of the rights herein conveyed shall proceed with reasonable diligence and in a bona fide effort to develop and to operate the area leased and to prosecute such drilling operations with due and reasonable diligence to the usual depth at which oil is found in other wells in the same vicinity, unless it is found in commercial quantities at a less depth; and proceed with reasonable diligence and in a bona fide effort to put out the product of each producing well during the life of this lease; and with due and reasonable diligence and in a bona fide effort proceed, either voluntarily or when requested by the commissioner of the general land office, to drill such other offset well or wells as may be necessary to protect such area leased from any well or wells that may be drilled on private land in the same vicinity and within such proximity as to render offset wells reasonably necessary for the protection of the interests herein.

4. The owner of the rights herein conveyed shall have the exclusive right during the life of this lease to drill for petroleum and gas on the area leased, together with the right of way thereon for laying and the right to pay pipe lines to convey water, petroleum, steam, or gas.

5. If any statement made by the owner of this lease which was necessary to the issuance hereof was false or untrue in material matters, or should the owner hereof fail or refuse to proceed in good faith and with reasonable diligence and in a bona fide effort to develop, operate, and put out the petroleum or gas at any time during the life of this lease, or fail or refuse to make proper remittance in payment of royalty or other payments, or fail or refuse to make the proper statement, or fail to furnish the required evidence of the output and market value and other material matters relating thereto when requested, or should fail or refuse to comply with any other regulations adopted by the commissioner of the general land office which are reasonably necessary for the proper execution of the provisions of the statute relating to the subject matter herein, this lease shall be subject to forfeiture.

6. All operations in water shall be done, as far as practicable, in such manner as to prevent the pollution of such water.

7. Upon the abandonment of any well, it shall be securely plugged or closed by the owner so as to prevent the escape of salt water and the entrance of salt water or fresh water into oil or gas bearing formations.

8. All the terms and conditions herein shall extend to the heirs, successors, and assigns of the said lessee, if such heirs, successors, or assigns are entitled under the laws of the State of Texas to hold the rights conveyed herein.

In testimony whereof, witness the signature of the said J. T. Robison, commissioner of the general land office of the State of Texas, and the seal of said office, this the 2d day of December, 1919.

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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 gen

eral land office of Texas to Sam Sparks, dated the 2d day of December, 1919, as the same appears on record in the deed records of Wichita County, Tex., in volume 151, page 208.

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 LENNA DAVIS, Deputy.

STATE OF TEXAS,

County of Wichita:

I, Sam Sparks, of Travis County, Tex., do hereby certify that I am the owner of the right to prospect for oil and gas on the 981.9-acre tract of land as shown on the accompanying plat and more fully described in oil and gas permit No. - as issued by the commissioner of the general land office of Texas, and for convenience in selling and conveying oil and gas permits, do hereby adopt this accompanying plat as a true and correct subdivision of same and all conveyances will be made with reference thereto.

STATE OF TEXAS,

County of Wichita:

SAM SPARKS.

Before me, the undersigned authority, 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 4th day of May, 1919.

MARY BYMAN,

Notary Public, Wichita County, Tex.

Filed for record May 23, 1919, at 9.34 a. m.
Recorded June 22, 1919, at 12.10 p. m.

W. T. HARRIS,

Clerk, County Court, Wichita County, Tex.

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 is a true and correct copy of a plat of Sam Sparks, first subdivision, Red River Valley, Wichita County, Tex., as same appears on record in the plat record No. 2, page 35, Wichita County, Tex.

Given under my hand and seal of office at office in Wichita Falls, Tex., this 7th day of January, 1922.

[SEAL.]

W. T. HARRIS,

Clerk, County Court, Wichita County, Tex.

By DENISE CALEBURN, Deputy.

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SAM SPARKS FIRST SUBDIVISION, RED RIVER VALLEY, WICHITA COUNTY, TEX.

Scale: 1 inch

=

4,000 feet.

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