Page:Ezzell v. Oil Associates, Inc.pdf/3

804 by appellee, leases 1,170 acres of land in Union County, Arkansas, for the sole and only purpose of having it mined and operated for oil and gas. The lease continues with the following clause: "It is agreed that this lease shall remain in force for a term of five years from this date, and as long thereafter as oil or gas, or either or both, is produced from said mine by the lessee."

In consideration of the execution of the lease, the lessee warrants and agrees to pay the lessors one-eighth part of all oil produced and used from the leased premises. The lessee also agrees to pay the lessors $250 each year, in advance, for the dry gas from each well, where dry gas only is found and further agrees to deliver to the lessors, as royalty, one-eighth of the wet gas which is produced from any oil or gas, or used off of the premises, in the same manner that oil is delivered. The lease then provides that, if no well shall be commenced on the leased land before the 18th day of December, 1920, the lease shall terminate, unless the lessee, on or before that date, shall pay, or tender to the lessors, the sum of $1,170, which shall operate as a rental and cover the privilege of deferring the commencement of the well for twelve months from that date. Another clause provides that, if the first well drilled be a dry hole, that if a second is not commenced within twelve months from the expiration of the last rental period, for which rental has been paid, the lease shall terminate, unless the lessee, on or before the expiration of said twelve months, shall resume the payment of rentals in the same amount and in the same manner as hereinbefore provided. There is also a clause by which either party has a right to assign his interest, in whole or in part. The deed was duly acknowledged, and filed for record in the clerk's office on the 23rd day of July, 1920.

A supplementary written agreement was entered into between the parties on the 18th day of June, 1920. This agreement recites the execution of the original lease, and states that it is supplemental to its terms. Among