[Letter from Hale Schaleben to Thomas L. James, February 12, 1954] Page: 1 of 6
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HALE SCHALEBEN Y
Attorney at Law
Edinburg, Texas
February 12, 1954
Mr. Thomas L. James
Sugarland Industries
Sugar Land, Texas
Dear Mr. James:
Enclosed herewith you will find the following:
(1) Original and three carbon copies of a proposed oil and gas lease
to be executed by Laurel Boedeker, et al, as lessor, to H. R. Smith,
as lessee, covering 6,627.17 acres of land out of the Boedeker Ranch,
which is the tract upon which Chicago & Sohio had a lease which termi-
nated on or about December 30, 1953, for failure to pay the annual
delay rental.
(2) Original and three carbon copies of a proposed oil and gas lease
to be executed by Laurel Boedeker et al, for themselves and as agent
for the State of Texas, covering 681.01 acres of land.
(3) One carbon copy of a proposed letter to be executed by H. R. Smith
at the time you make delivery of the 881.01 acre lease above referred to.
You will see that the 6,627.17 acre lease provides for a primary term of
five years, a royalty to be paid the lessor of 5/32nds, which is 1/32nd
more than the usual and customary 1/8th, and it contains a provision
that the lease shall terminate unless a well is commenced within one
year of the date of the lease at a point somewhere within a radius of
7500 feet from the southwest corner of Section 15, which well shall be
drilled to a minimum depth of 10,500 Beet unless it be completed as a
commercial producer of oil or gas at a lesser depth and which lease
provides for an annual delay rental in the amount of $1.00 per acre per
annum. There is no provision in that lease with regard to the termina-
tion of the lease in the event the well is not drilled because of the
fact that the collateral agreement which will be in the form of a letter,
copy of which is enclosed herewith, provides that the lease shall be
assigned by H. R. Smith to you as trustee in the event that well is not
drilled or in the event H. R. Smith elects not tp pay rentals during the
ten year primary term of that lease. Of course, we have discussed the
matters provided for in the collateral agreement, and obviously, the
collateral agreement is executed so that the present owners of the
property can maintain in force an oil and gas lease upon the 881.01 acres
even after that property is conveyed to Ed Rachal under the purchase
contract, so that the present owners may reserve throughout the life of
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Schaleben, Hale. [Letter from Hale Schaleben to Thomas L. James, February 12, 1954], letter, February 12, 1954; (https://texashistory.unt.edu/ark:/67531/metapth1151917/m1/1/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Rosenberg Library.