ADDENDUM
This Addendum is part of the Oil and Gas Lease dated ______, between Barton County, Kansas, Lessor, and ______, Lessee, covering the ______Barton County,Kansas.All terms set forth herein shall be as though they appear on the face of the subject Lease and shall be considered a part thereof. In case of conflict between the terms of this Addendum and the subject Oil and Gas Lease, the terms of this Addendum shall control. Additional terms of the subject Oil and Gas Lease are as follows:
1. In the event of a shut-in gas well only on the leased premises (gas not being sold from a completed gas well), shut-in royalty shall be paid to Lessor at $15.00 per acre per year and not $1.00 per acre per year. In the event such shut-in royalty is paid for 2 consecutive years and there is no further development of the Lease, Lessee shall then release all acreage covered by the Lease, exceptinga 10 acre square tract in which the shut-in gas well is centered.
2. No unit or pool shall be declared which accords to Lessor less than 50% of the total acreage in such unit/pool.
3. No saltwater, fluids or other substances of any kind which are produced from property not covered by this Lease may be brought onto and disposed of on acreage covered by this Lease without Lessor’s express written consent, which Lessor is not obligated to give.
4. Any top soil removed for any reason shall be segregated and kept separate from other soil and shall then be replaced as top soil. All contours disturbed by any operations shall be restored to original condition as nearly as is practical.
5. In the event any acreage covered by this lease is pooled or unitized with any other lands, Lessee shall release all acreage covered by this lease and which is not included in such pool or unit at the later of 2 years from the expiration of the primary term of this lease or 2 years from the completion of the well which is located in such pool or unit.In the event Lessee completes a producing well, or wells, on such non-unitized acreage within such 2 year time period, this provision shall not apply.
6. Lessee agrees to consult with Lessor as to the placement of tanks and production equipment; location and construction of routes of ingress and egress; and location of underground pipelines.
7. It is agreed between Lessor and Lessee that all payments for oil, gas, or other products accruing to Lessor shall be without deduction for costs and expenses such as producing, gathering, storing, separating, treating, dehydrating, compressing, processing, transporting, and marketing, unless any such cost or expense directly enhances the value of the oil, gas or other product and results in receiving a better price. Any such deductions shall be based on Lessee’s actual costs and in no event shall Lessee receive a better price than Lessor.
8. Oil and gas operations may not interfere in any manner with operations of the Barton County landfill. Barton County shall make the determination if oil and gas operations are interfering with landfill operations. If such determination is made, the Lessee will cease such operations immediately. If the Lessee does not, the Lessee agrees to pay a daily fine of $500 until the interference ceases.
9. The operator shall promptly pay to Barton County reasonable costs for damages caused to County owned property.