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Home My WebLink About914185 PRODUCERS 88-PAID UP Re\'. 5-60, No.2 (CBG) RECEIVED 12/5/2005 at 253 PM RECEIVING It 914'185 OIL AND GAS I.JEASE BOOK: 606 PAGE: 725 JEANNE WAGNER liNCOLN COUNTY CLERK, KEMMERER, WY This Oil and Gas Lease ("Lease") is made this ~day of !\la\', 2005, by and between Chesler Bn'nl Dads, a widower, wbose address is P.O. Box 274, Mountain View, \VY 82939 ("Lessor", whl'lhl'r one or more) and Laramide Exploration, LLC, a Colorado limill'd liability cOlllnan\" whose address is 21390 East Progress Plaee, Centennial, CO 80012 ,("Lessee"). WITNESSETH, For and Consideralion of TEN DOLLARS, the co\'enanls and agreements l·onlailll·d hcreill, aud (J(her good and I',tlllable cOllsideralion the naipt aud sufticiency of which are hereby acklloll'ledged, Lessor does henby granl, dl'mise, lease alld leI exdusi\'ely unto s" id Lessee, \I ith the exdusi\'e rights for the purposes of mining, exploring h)' geoph)'sical and other methods and operalillg fur and produeillg thenfnJlu oil "II[I all gas of wh:llsol'l ,'1' lIature or kind (inl'luding coalbed gas), and layiug pipeliues, telephoue and kkgraph lines, buil,lillg lauks, plan!>, po 1\ l'r statio liS, roadll ays ,\lid strul'lures tl,creon to produee, sa\'e and tal,e earl' of said p¡'oducts (including (ll-lI'ateriug of coalhed gas lI'ells), and tll" exl'lusÍll' surface or suhsurface rights and pri\'Begl's related in any manner to any and all such 0IH'ratioJlS, aud "n)' "ud all other righls and pri\'ileges ueeessary, incident 10, or eunl'{'uieut for the operation alone or conjointly wilh ueighhoring land for such purposn, all that ce.-taiu tract or tracts of land situated in I.¡ncoln COUllt,l, W\'omiu1! {Il-scribed to wit; TOWNSHIP 19 NOHTII, RANCE 118 WEST. 6'" P.~l Section 2.J: NW/.J, N/2SW/.J, NW/.JSE/.J ¡q \1 'L·U a'HI containing 280.00 acrcs, more o,'less (ineludiug an)' interests thereiu whith Lessor may hereinafter acquire hy re\'enioll, preslTiption or olherwise)(the "Premises"). In addition to the ahol'C describcd land, tbis lease and he term "Premises" also C(J\'CTS al'creliolls 'HId allY small strips UI- pan'ds of laud 11011 or hen'ancr olllll'd by Lessor which an' l'Olltiguous or adjal'eut to Ihe abol'C,mentiolll'd lalld, and in l'onsideration of the aforelueutio,,,-t! cash I'OUIIS, Lessor ¡Ignes tu nel'nte at Lcssl'l"s re{l"est any additional or supplemenlal iJlStnlluents for a nlOrl' complete or aCl'UI.¡te (Il'srription of the land so l'(l1 erl·d. For the purpose of detl'J'miniog tbe amouut of an)' rentals and shut-in royalties hereunder, the nunlber of gross acres above specified shall be deemed correct, whdher actually more 0" less. I. II is agreed that this Lease shall remain in full force for a term of Five (5) years from the dTcetive date herenf ("Prinlary Tl''n") and as long there'lfter as oil or gas of whatsoe\'er natu'{' or kind is IJJ'oduced 1'1'0'" the Premises or on acreage pooil'd or unitized therewith, or operatiolls arc continueù as hcreinafter pro\'ided, If) at the cxpiration of the Prillulry Tenu, oil or gas is not hl'iug pnHJul'l!tl frolll the Prcllliscs or 011 acreage poolt:d ur unitized thcrc\\ith hut Lessee is then engaged ill drilling, rc\\'orking or de" all'rillg operations tIH'rculI thclI this Lease shall ('oHlinl(' in force S0 JOJlg as surh openJtions arc heing contilluously IJI'oseclltl'd. Operations shall be considered 10 he l'Ollliuuously prosecoled if not more thall nillel) (90) days sl,all elapse between the l'ompletioll or abandonmeut of one well alld the beginllillg of operatiulls for the drilling of a SllllSl'quen! wi'll. If aftl'J' disco vcr) of oil or gas on the Premises 01' on acreagc pooled or ullitized therewith, Ihe productioll thereof shollld cease from allY cause anC'r the priluary tern" this Lease shall IIOt tenninale if Lessee commences additional drilling, reworking 0" dewatering operatious wilhin ninety (90) days fr(lm date III' l'essation of prodlll,tiou 01' from date of completion of a dO')' hole. If oil or gas shall be diseo\'ered and produccd as a result of such operatiolls at or aner the e\piralion of the Primary T"rm, this Ll'ase shall continlle ill force so long as oil 0" gas is prodllCl'd from the Premises 0'- on acreage Plloled or unitized therewilh. 2. This is a I',\ID-LJP LEASE. In considc''¡ltion of the pa)'ment made herewilh, Lessor agrees that Lessee shall nol be obligated, except as otherwise provided henin, to commence or continue any operations during the primal')' term. Lessee ma)' at all)' lime or tinles durillg or "fieI' the Primary Term sUI'I'('nder this Lease as to all or any portion of Ihe Premises and as to any strata or stratum, by deli\'ering to Lessor 01' by lilillg for rn'urd a release or rclcast.'s, and he rdit.>\'cd of all ohligations thereafter a('cruillg as to the acreage surrcl1den~d. 3. Lessee covcnants ,wd agrees to pay royalty to Lessor as follows; (a) On oil, to deliver to the credit of Lessor, free of cost in the pipeline to which Lessl'C may connect wells on thl' Premises, the equal one- eighth (I/S"') part of all oil p.-oduecd alld sa\'ed frollllhe PJ"Cmises. (b) On gas of whatsoever nature or killd, inclllding co,dbed gas and other gases, liquid hydrocarhons and Iheir respecti\'e constituent clements, casinghead gas or other gaseous subslallces, produl'l'd from the Premises ('"Gas") Lessee shall pay, :IS rnyalty, olll'-cìghth (1/8''') of thl' net proceeds realized by Lessee fronl the sale at the well. (c) Onprodllct prodlleed from the Premises Lessee shall pay, as royalty, one-eighth (1/8''') of the net procl'l'ds realized hy Lessee from the sale at the wclL 4. "'here Cas froul a lI'ell capable of producing Cas (or from a well iu "hieh dellalerillg operations ha\'e COlIlIlIl'IICl'd), is not sold or used ,,/'tel' the expiration of the Primary Term, Lessee shall payor tender as royalty to Lessor at Ihe address set forlh ahol'C o Ill' Dollar ($1.00) pel' )ear per nctlllilleral aere, such payment or Il'uder to he made on or befoJ"C the annivcrsar)' date of this Lease next ensuing a/'ter the npiralion of nine!y (90) days from thl' date su('h well is sllllt ill or dcwakriug 0p('raliolls arl' l'lIllllHCIIC(·d and Ilh'r~afkr 011 or hl'forc the aUllh'crsary date of this L.t.·a~c during the period ~'dJdl \\1.:11 is shut in or dewatering operations arc bciug conducted. 5. If Ll'sso,' Oll'nS a Jesser interest in the PI'emises than the entire alld undi\'ided fee simple estate therein, then the rll)'alties (inclnding an,l shlll~in gas royalty) herciu prOlided for shall he paid Lessor only in the proportilln II hieh Lessor's interest hears to the whule and nndi\'ided fee. 6. Lessee shall han Ihe right to nse, free of cost, Gas, oil aod water pnHluced 1111 Ihe Prellliscs fill' Lessee's operations thereon, e\l'l')t water frllnl the wells of Lessor. 7. When I'l'qnesll'd h)' Lessor, Lessee shall hury Lessl'l"s pipeline helow plow depth. 8. No well shall be drilled nearer than 200 fect to the house or h"rll now on the Premises withollt IHitlen conselltllf Lessor. 9. Lessee shall pay for damages l'ansed b)' Lessee's operations to growing crops nn Ihe Premises. HI. Lessee shall have the right at any tÍllle 10 remo\'e all machineI')' and fistures (including casing) Ll'ssel' has placed un the Premises. 11. The rights of Ihe Lessor and Lessee hereunder may be assigned in II hole or part. No change in uWIIl..-sbi!' III' Ixssllr's inten'st (by assignment or otherwise) shall be binding on Lessee ulltill.essee has been furnished with notice, eonsistiug of cl'rtiti{'d ('opies of all reconkd instrllull'uts 01' dO{'uulents and other information lIl'l'essary to eslablish a cOBlpkte chain of record title f.-om Lessor, and then only with J'l'spect to payments thereafter n¡¡¡de. No ulher kind of notice, whether actual or eonstructil'l', shall be billding un Lesscl·. No IJlTsl'nt or futun' dilÌsion of Lessor's O\l'Ill..-ship as 10 different porliol!'; or parcels of the Premises shall operate to enlarge Ihe obligations or diminish the rights uf Lessee, and all Lessee's opera lions may be cOlldncted without regard to any such di\'ision. If all or any part of this l.ease is assigned, no leasehold owner shall be liahle for allY act or omission of any other kasehold owner. 12. Lessee, at its option, is he"eby given the right and power at all)' time and from time to time as a reenrring right, cìlber before or afler production, as to all or any part of the Premises and as to anyone Or more of Ihc formations thereunder, to pool or lIoitile tbe kasehold estatc and Ihe minl'ra¡ estate co\'ered by this Lease with olher land, lease or leases in the immediate \'icinity for the production of uil alld gas, or separately for the prodlletiuo of either, when in Lessec's jndgment it is necl'ssary 01' adl'isablc 10 do so, and iITl'spe!'ti\'e of whether anthority similar to thi, nists lIilh respect to such ,.ther land, lease or leases. Likewisl' nuits pre\'iously fOl'lned to include formations not producing oil or gas, lIIay he reformed to nclude sUl'h nllll-prodlll'ing formations. The formiug or refol'luiug of any unit shall be accomplished by Lessee csecutiug and filing of record a declaration uf sUl'h uniti/ation or reformation, which del'laration shall dcscribe the unit. Any IInit may include land upon which a lIell has theretofore been cOIII!,lelL'd or upon which operations for drilling han' theretofore been l'onllul'ueed. Production, dl-illing, reworking or dewaterillg operations or a wdl sbul ill fill' lIalll of a market any\\ here 01) a uuit which includes all or a part of this Lease shall be treated as if it wcre productioll, drill¡ng, J"(,'WOrli.illg ur dewatering operations or a weB shut i:l fer ,,','ant of a Inad~c: undcr t!::s L~:l:;~. Ii: !i::-u of flu.: rOj'aH¡~~ ('!$,-=,,·..hen~ h~rri:l ::;p;,'dH;;:d, h¡d;;~H::g :;hut-i:¡ g;::; fGy::!!ics, L~s~:):· :;h:dl n'c('h'c :'oy:dtk's on produdion from such unit only on the portion of such productiou allGc'lIed to Ihis Lease; such allocalion sh,,1I he that proporlion or Ihe unil production Ihat the tOlalnumber of sUl'face acres con'red hy this Lcase 'Iud included in the Unit bl'ars to the total numher or surrace acres ill such l!lIiL In additiou to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the Premises as to one or lHore or the formations therenndl'r 1\ ill¡ otl)er lands in the same general area by entering into a coopenJti\'e or unit plan of de\'elopment or opera lion approll'd b) any go\'ernmental aulhority and, rrolH tinJc to ..iule, wHh like approval, to HlOdify, I..'hange or tClïllinatc any su('!l plan or ngrcenlt.'Jlt and, ill surh éVl'lIt, the tCrlns, ('anditiuns alld pJ"lJ\'isioJls of this Lease shall be deemed nlOdilied to conrorm to the terms, conditions, and provisions of snch appro\'ed coopcrali VI' or uni! plan of de\'el0IJlllent or operation aud, parlieularly, all drilling and de\'elopment requirements of this Lease, espress or implied, shall he satislied by eompliauce with the drilling and development requirements of such plan or agreement, and this Lease shall not terminate or cxpire duriug the life of such plan or agreelllent. III Ihe e\'enl that the Premises or allY part thereof, shall hereafter be operated nllder any such cooperative or unit plan of developmcnt or operation I\hl'reb)' the produelion therefrom is allocated to different portions of the land con'red by said plan, then the production allocated to any parlicular tract or land shall, for the purpose of computing the royalties to be paid hl'rl'under to Lessor, be regarded as haviug heen produced from tl,,· partkular tract of land 10 I\hkh il is allocaled alld not to any otl,{'r tract of land; and roy¡¡Jty payments 10 be made hereuuder to L,'ssor shall bl' bascd UpOIl production only as so allocalL'd. Lessor shall formally espress Lessor's {'Ollsent to any ('ooperative or unil plan of deI'Clopmenl or opera lion adoptcd by Lessee and appnJ\cd by all)' go\'eI'lJJul'ntal agency by executing the same npon reqoest of Lessee. 13. All express or illlplied eo\'ellants of this Lcase shall he suhjed to all Federal and State Lal\s, Executi\'e Orders, Hu"'s or Regul:uiolls, and this Lease shall not be terminated, in I\hole or in part, nor Lessee held liable ill damages, for railure to compl) thcrcl\ith if eompliallce is prel'l'lIted b)', Or if sllch f,¡ilure is the result of, any soch La\\', Ordl'r, Hule or Regulation. Any delay or iuterruptioueaused by storol, flood, Ht of Cod or other "I'l'Ut of roree IIlajl'ure shalluot he counted '¡gainst Lessee. If, due to the abo\'e causes or any cause whatsoe\'er hcyoud the coutrul or Lessee, Lessee is pre\'elltcd frolll eonducting PRODUCERS 88-PAID UP Rev, 5-60, No.2 (CUC) d :':; :-~" ({:11. S 5 I' n r ¡.., ~, e ~..J '~) '\..,: t .":.., U operations h('I'('uIHler, such ¡ilne shall not bc counted against Lesst'e, and this Lease shall he esteuded for a period of time e'lual to the time Lessee \\'as so preveutt'd, anything in this Lease to the contrar)' notwithstanding. 1-1. Lessor h('rehy agl'ees that Lessee shaJ have the right at au)' time to redeem for I.e"or, by payment, any mortgages, tases or olht'r liellS on the Prenoises, in the event of defanlt of payment by Lessor, ¡¡nd be suhrogatt'd to the rigllts of the huldt'r thereof, aud the nndersigned Lessors, for thelllselves ;11,,1 their heirs, snccessors and assigns, hereby snrrender and release all right uf do\\'er aud humestead in the Premist·s, insotar as said right of dower and homestead may in any \\'ay affect the purpos('s for which this Lease is m;"le, ;IS redted herein. 15. Should auy one or more of the parties named as Lessor herein fail 10 ('.\Cl·ule this Lease, il shall nevertheless he [¡¡nding npon all soeh parties who do nee ute it ¡IS I.es-snr. The Ilord ""Lessor", as used in this Lea,,', .\hallllleau auy nul' or iIIore nr allnf Ihe parties II ho eseeule lids Least' as I.l·sSOL .\11 the provisions of this Lease shall he binding on the heirs, successors alld assigns ot Lessor alld Lessee. IN WITNESS WII EREOr, this instrnment is cscented as of Ihe datc lirst ahon wriltcn. SignatHn~ d~~{)~ Chester Brent Davis -~.,- --~-,-- AC K .'(¡\\'LEDC~I ENT STATE OF -.W---L(-i2>CrLÎ...l'3.5---- __: COUNTY OF----'4J'''I-t_ 2~_) ~. INDI\'IDUAL (For usc ill all staIL's) 011 this _23 _dtl) oj --œ-4-L.l_~___~ 2(¡05, bd(11c IlIe I¡~ lIIlI~I:)igllÇd Nut.H) PublIC III .lIId Inl ~,lld COUll!) dld sLit\.: pl.:l~(Jlldl) dpp~,Hcd rll~,ir.~i Dlelll D,\ "_--<1 '-'li~ klllJlll1 to llIe I" be the pelSoll(,) \.¡I1O,e l1a",o(,) " subseilbed 10 the 1;)"g"llI~ "1> I 1l1l11""t , alld ,"kl1";;.kdg~~.~,,t the '.Il11e II <is e ,"dlled "lid del" o,,,d ,Is th"" lìee ,11)(1 \OIUIII,JI) del h" Ihe JlJlp"'Ö ther"lIl ,et t"rth 111 II Itlle» II h",eof I hereullto ,et 111) h.lllt! ,111, "ni".d ,""t .IS "llh" ddle h9(O'".lh"~ ded ~N 6~µ Notd') Public 101 St:,k "f~'t ¡4µ_1~~ My Commissioll E'pirö .-i..2..::...2 / - tJ l'.e------ J11 û L1..tl~~_VU!_1Ll____ Röj¡jng :\1 SEAL !,,¡ j"/)/L ¡jr',\ I :iJ¡Ü; - ,,!; ;'!);.¡i'/ i ;uhf H,~ -1; f f ¡I:-! I'i ~J J.li l.~ U;'~ ,i')!ii. i v/'(. ;i.i!¡.'\,i \'.11 \,:ULH',lLj ,¡;jl' /2-;¿/-(JV