KNIGHTS OF COLUMBUS HALL, Plainville, KS 67663 - Rooks County

LEGAL DESCRIPTION: N/2 OF 9-9-17

LAND LOCATION: From the intersection of Hwys 183 and K-18 in Plainville, Kansas, go 4 miles North to Road T, and 3 miles East to the NW corner of the property. SIGNS WILL BE POSTED!

MANNER OF SALE This real estate will be offered in one tract. Auction procedure and increments of bidding are at the discretion of the auction company.

TERMS: 10% down day of sale, balance to be paid on or before October 26, 2012, or upon such terms as may be acceptable to the Seller. Personal and corporate checks are acceptable for the down payment with the final payment to be made in certified funds. All funds will be held by the auction company in their trust account or by an identified title/escrow company. Bidding is not contingent upon financing. Financing, if necessary, needs to be arranged and approved prior to the auction. All bids are subject to Sellers confirmation. Announcements made day of sale take precedence over printed material and previously made oral statements.

MINERAL RIGHTS: Mineral rights are believed to be 100% intact on the NW/4. Mineral rights on the NE/4 are held by production under the current oil and gas lease. All of the Sellers interest in the mineral rights, together with their 2.5% interest in and to the royalty production, will transfer to the Buyer at closing. Buyer is responsible for conducting his own verification of ownership of the mineral rights.

CROPS: All 2012 crops are subject to the tenants rights under the current cash Farm Lease Agreement. Tenant will plant the property to wheat this fall.

FSA INFORMATION: Cropland Acres 303.6

Base Acres DCP Yield

Wheat 149.8 33

Grain Sorghum 75.0 39

100% of all FSA payments associated with the 2012 crop year will be retained by the tenant under the current cash Farm Lease Agreement.

CLOSING: Closing will be on or before October 26, 2012.

POSSESSION: Date of closing, subject to the tenants rights.

REAL ESTATE TAXES & ROYALTY TAXES: Seller has paid taxes for all of 2011 and prior years. Taxes for 2012 will be prorated to the date of closing. (2011 real estate taxes = $681.68 and 2011 royalty taxes = $705.40).

ACREAGES: Acreage figures are considered to be approximate and are from reliable sources, based on (USDA) FSA figures. All FSA information is subject to change. FSA acres may not be the same as deeded acres. Acreages are not covered by title insurance.

ACCEPTANCE OF BIDS: The successful bidder will be required to enter into a real estate purchase contract immediately following the auction. Copies of the contract will be available prior to the sale.

EVIDENCE OF TITLE: Seller will provide title insurance on the real estate to the Buyer in the amount of the purchase price with the premium to be paid one-half by the Buyer and one-half by the Seller. Title evidence will be provided on sale day.

INSPECTIONS: Each potential bidder is responsible for conducting their own independent inspections and due diligence concerning pertinent facts about the property. Neither Seller nor Farm & Ranch Realty, Inc., its agents or representatives, are making any warranties about the property, either expressed or implied.

EASEMENTS: This sale is subject to all rights-of-way and easements, whether recorded or not, and to a current oil and gas lease of record.

AGENCY: Farm & Ranch Realty, Inc., its agents and representatives, are the Exclusive Agents of the Seller.

AUCTIONEERS NOTE: This land is owned by the Winifred Mainquist heirs who do not live in the area. It is farmed by Ron Hrabe who would like to continue farming it for a new owner. He would like to lease it on a cash lease basis, but would consider a crop share lease. He will plant the land to wheat this fall and harvest it next year.

The Mainquist family owns 2.5% of the royalty income (3 producing wells and SWD well on this land) and are letting their share of the production go with the surface of the land. Seller owns all of the mineral rights under the NW/4 which are believed to be intact, and when the current production ceases, the mineral rights under the NE/4 will revert to the surface owner (100%). The land is located in an area of developed oil production. GREAT PROPERTY FOR AN INVESTOR OR OWNER/OPERATOR BUYER!!