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Home My WebLink About914186 PRODUCERS 88,PAID UP Rev. 5-60, No.2 (CBG) RECEIVED 12/5/2005 at 2:54 PM RECEIVING'# 9-14186 OIL AND GAS LEASE BOOK: 606 PAGE: 727 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY This Oil and Gas Lease ("Lease") is made this :H¡/h day of June, 2005, hy and betwí:en Todd Russcll.Davis, a married man dealing in his sole and Se(Hlrate property (indiyiduall.y and as heir of Corahell.e Davis, dl'l'eased), whose address is P.O. Box l07:\_.D.lounlain Vicw, \\Y 82939 ("Lessor", whether one or more) and Laramide Exploration, LLC, a Colorado limiled liabilitl' ('ompanl', whose address is 21.190 East Progress Place, Ccntennial. CO 80012 ,("Lessee"). \VITNESSETII, Fo,' and Consideration of TEN DOLLARS, the covenants and agreements cnntained hen'ill, and olher good and \':Iloable consideration the receipt and sufticiency of whkh arc herehy acknowledgl'd, Lessor docs hereby grant, demise, lease and Il'Ie.\<'lusivcJy unto said Lessee, with the exclusive righls for the purposes of mining, exploring by geophysieal and other nlethods and operating for alld producillg thercfrom oil alld all gas of whatsoever nature or kind (including coalbed gas), ¡!lid laying pipelines, lelephone and t"'egraph lines, bllilding tanks, planls, IJOwl'r statio os, roadwa)'s and structures thereon to produce, save and take carl' of said products (including dewatering of l'oalbed gas wells), and the l'\clusive surfacc nr subsurfacc rights nnd privileges related in nny mnnner 10 nny and nil such operations, and any and all other rights and prÏl ileges ",,,,essary, iuddcnt to, or l'on\l'nienl for the operation alone or ronjointly with neighboring land for such purposes, all that l'ertain tract or tracts of land situated iu Lineolll Connl)', _ \Vvoming , de:ócribed to wit: TO\VNSIIIP 19 NORTlI, RANCE 118 \\EST, 6'" P.1\1. Section 2-4: N\\'/-4, N/2S\V/-4, N\\'/-4SE/-4 o I and containing .l80.00 acres, more or less (including any interests therein which Lcssor may hereinafter acquirl' hy reversion, presl..-iption or otheJ'l\Ìse)(lhe "Premiscs"). In addition 10 the abo\'C descrihl'd land, this lease and the terlll "Prellliscs" also eovers ac,retions 'lIld :loY Slll:lll slrips 01 p:lrccls III' laud Ilm\ or hereafter oWlled by Lesso,' which an cuntigllous or adjacellt 10 the above-mentioned lalld, and in consider¡ltion of the aforemelltiolled c,,,h ¡WilliS, Lessor agrees to execute al Lessee's rcquest any additiollal or suppklllcutal illSt/UlIIl'lItS for a lIIore cOlllplcl, or Hecurall' dcsrriplion of thc lalld so cOHn·d. For the puqJOse of dctenninillg the alllollnt of any rentals alld shut-in loyalties herellllder, the nOlllber of gross aC/es abovc spcl'ified shall he dl'eoled conl'ct, whethe,' aetllally more or less. I. It is ngrecd that this Lease shall remaill in full force for a term of Five (5) years from the etleclin' dale heITLJf ("Primary Tcrm") nlld ns 10llg thereafter as oil or gas ofwhntsoever natu"e or killd is produced from the Premises or on aereagl' pool(Od or unitiLl'd therewith, or LJpl'ratiolls arc continued as hereinnfter pro\'ided. If, at the expiration of the Prilllary Term, oil or gas is not being produced from the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling, reworking or dewatering operatiolls Ihereoll, thcn this Lease sh:lll continue in force so long as such operntions n"e being continuously prosccull'd. Operations shall be l'onsidered ILJ he continuously prosecuted if not lIIore than lIillet)' (90) days shall elapse between the eOlllpletioll or ahandonmcnt of one well and the beginning of oper:ltiolls for the drilling of a subsequent well. If after di,co\ery of oil or gas on the Prelllises 0" on acreage pooled or ullitized therewith, the prodllction thereof should cease froll. any l':lOSl' after the primary term, this Lea,e shall not lerlllinatl' if Lessee l'ommellces additiollat drilling, reworking or dewaterillg operations within llillcI) (90) d:lYs fronl date of cessation of productioll or from da(> of l'Ulllplctioll of n dry hole. If oil or gas shall be discovered and produced as a result of such operatiolls 'II or aftl'/' the l'\piratioll uf the Prill.ary Tl'rm, this Lease shall continlle in force so long as oil or gas is produccd from the Premises or on nl'J"eage pooled or IIlIiliad therewith. 2. This is a PAID-III' LEASE, III conside"alion of the paYlllellt made herewith, Lessor :Igrees Ihal Lessee shall IIOt be ohligaled, except as otherwise pro\'ided hereill, to commence or continue any openltions during the primary Il'rm. Lessce n¡¡¡y at any time or timl's during or after the Primary Tenn su....ender this Lease as to all or any portion of the Premises and ns to any stratn or stratum, by deli\'erillg to Lessor or by filillg for record a release or releases, and be relieved of all obligations thereafter accruing as to the acreage surrendered. . 3. Ll'ssee l'ovenants and agrees to pay .-oyalty to Lessor ns follows: (a) On oil, to deliver to the credit of Lesso,', free of cost in the pipelille to \I llidl Lessee ma) COllllcct wells 011 the Premisl's, I he l'qual olle- l'ighth (118"') part of all oil produl'ed alld savcd from the Premises. (b) On gas of \\ hatsoe\'er nature or kind, indudiug coatbed gas and other gases, liquid hydnJl'arbolls aud their respl,(·ti\'l' l'ollstituellt clclllellts, casillghcad gas or other gaseolls substallccs, produced frolll the "rl'misl's ("Gas") I,cssel' shallp:lY, as royally, nllc-eighth (118''') of the net proceeds J'Calized by Lessl'e from the s:llc at tÌi': well. (c) Ou product produced frolll the Premiscs Lessee shall pay, as royalty, oue-eighth (1/8''') of the Ilet prol'l'eds realized by Lessec from Ihe sale at the well. -4. \Vhere Gas from a well capable of produciug Gas (or from a well iu which dewal(,rillg operations have conlmenced), is not sold or used after the expirntion of the Primary Tenn, Lessce shall payor lenda as royalty to Lessor at the address sl'l forth above Onc Dollar ($1.UO) per year per net mineral acre, such JHlyml'nt or tender to be mnde on or before the annÍ\'ersary date of this Lease next ensuing after the e,'piration of ninl'ly (90) days from the date such well is shut in or dewatering operntions nre eommenl'ed and thereafter on 0,' before the anniversary (hlte of this Lease during the period sUl'h \\ ell is shut in Or dewntering operations nre being conducted. 5. If Lessor owns n lesser interest in the Premises than the entire and uudhided fee simple cstate therein, then the royalties (iucluding any sbut-in gas royalty) hl'rein pro\'ided for shall be paid Lcssor only in the proportion \\ hich Lcssor's intcrest bcars 10 the wholl' and undil'ided fee. 6. Lessee shall have the right to use, free of cost, Gas, oil and water prodnced on the Premises for Lcssl'c'S operatioos thal'on, "l'l'pt waleI' from the \Hlls of Lessor. 7. When requested by Lessor, Lessce shall bury Lessee's pipclinc bdow plow depth. 8, No well shall be drilled nearcr than 200 feet to the hoosc or barn now on the Premises withont \\Titlenl'onseut of Lessor. 9. Lcssee shall pay for damages caused by Lessce's operations to growing crops on thc Prcmises. 10. Ll'ssee shall have the right at any time to remove all nlachinery and fixtures (including casing) Lessee has plal'l'd on the Premises. 11. Thl' rights of the Lessor and Lessee hl'rcunder may be assiglll'd in whole or part. No changc in O\\uaship of Lcssnr', intaesl (by assignmcnt or othl'f\\ise) shall bl' binding on Lessee nnlil Lessee has ()l'en furnished with notÍl'e, consisting of eertitied copies of all "ecordl'd imtnllllents or documl'nls and other infonllation necessary to establish a l'olnplete chain of record title from Lessor, and then only witll fl'spect to paymellts theHafter made. No other kiud of notice, \\ hether al'lual or constructi\'e, shall be binding on Lcssee, No pn'scnt or fnturc division or Ll~sst)r's o\lncrship as to difrcrcnt portions or parcds of the Premiscs shall operate to enlarge the ohligations or diminish the rights of Lessee, aud all Lcssee's opcrations I]J¡IY IH' condllckd without n'gard to any such division. If all or any part of this Lease is assigned, no leasehold owuer shall be liable for auy act or omission of any other leasehold 0\1 nero 12. Lessee, at its option, is hereby given the right and power 'II any time and from time to time as a recnrring right, either I)('fore or after production, as to all or any part of the Premises and as to anyone or more of the formations therennder, to pool or unitize the leasehold estate and the mineral estate coveJ"Cd by this Lease with other Innd, lease or leases in the inunediate vicinily for the production of oil and gas, or s'paratcly ror Ihe prodnction of dlhl>r, when in Lesscc's judgnH'nt it is nccessary or advisablc 10 do so, and irrl'Spl'cti\'l' or whethcr authority similar to this exists \\ ith rcspeet to such olhcr land, lease or leases. Likewise nuits previously fOrllll'd to include fonllatiulls uot produrillg oil or gas, may he rl'foJ'/lIed to exclllde snch non-producing formations. The forming or reforming of any unit shall be accomplishcd by Lcssl'e e\l'eutillg alld tiling of reeord a dl'claration of such uoili/.ation or reformation, which declarntion shall describe the unit. '\ny nnit may inclllde land upon which a \\l'll has Ihercto/Ùre beell mmpleled or upon \\ hkh operatiolls for drilling have theretofo,'e bel'n conl/nenl'ed. Produetion, drilling, n'workjng or dewateriug operations or a \\l'll shut in for \I ¡wt of a market anywhere on a unit which iucludes all or a part ûf this Lca~'-' shall be in:atl'd as if it wcre productioll, drHliug, I·c\,"orkillg OJ' dC\\'ilkriug ()p~J"a(ÌoJls ur a welt shut ill for wallt 01':1 market under this Lease. Inli('u of the royalties elsewhere herein specitil'd, including shut-in gas royalties, Lessor shall receÍ\'e ro) allies on productiun from such unit only on the portion of sUl'h production allocated to this Lease; such allocation shall he that proportion of the uuit production that the total ulllnber of surface neres covered hy this Lease (lnd included in the Unit bears to the total number of surface acres in such Unit. lu addition to the foregoillg, Lessee shall have the right to unitize, pool, or combille all or any part of the Premises as to one or IlIore of the fonll,ltions tlll'/'l'ullder wilh other Innds in the same genernl area by entcriug into a cooperative or unit plan of de\'l'lopment or operation appJ'/J\l'd by auy gOl'erttmental authority 'Iud, from time to time, with lik(' approl'al, to modify, change or terminatl' auy sllch plan or agreement and, iu such event, the terms, conditions aud provisions of this Lease shall be deemed modilil'd to conform to the terms, conditions, ¡¡¡HI pro\Îsions of snch approved cooperativc or nnit plan of denloptnent or operation and, particularly, all drilling nnd de\dopment relnirements of this I.ease, express or implied, shall be satislil'd hy l'ompliance wilh thl' drilling and development requirements ofsnch plan or agreement, and this Lense shall not terminate or expire dllring the life ofsnch plan or agreement. In tile e\'ent that the Premises or any pari thl'l"eof, sll¡11I h('reafter be opcrated nnder any such cooperative or nnit plan of developmcnt or uperation whereby the produl'tion therefrom is allocated to different portions of the Innd covered by snid plnn, then the production allocated to nny particular tract of land shall, for the pnrpose of computing the roynlties to be paid hereunder to Lessor, be regarded as having been produccd from the particular trad uf land to \\ hich it is allocated alld not to any other trnct of Innd; and royalty payments to be made herennder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to any coopernti\'e or unit plan of development or operation adoptcd by I.essce aJILI apprllved by any govcl'J'l1Iental agency by exeenting the same upon request of Lessee. 13. All express or implied covenants of this Lease shall be snbject to all Federal and Stall' I.aws, Exel'ntÎ\'e Ordl'l"s, nnll'S (,I' Regnl:dions, and lhis Lease shall not be tl'l"minated, in whole or in part, nor I.essee held liable in damages, for failun' to comply thl'n'\lith if "'¡llIplian('e is prl'\l'ntl'¡\ hy, Or if ,,"'h failurc is the rcsuJt of, uny suda Law, Order, Hull' or Regulation. Any delay or Îult:rruptioll (.'aused hy storm, 1100d\ act ur God or othe!' l'\'~'liI lJf force lìlajt:ure 'f -" ¡! ~ PRODUCERS 88-PAID úeV'i/~Jl8G ReI. 5-60, No.2 (CBG)" <,.J .. (ì r: 1'1 :.' 0 : J t.; ¡ /.·0 shall not he eounted against Lessee. If, due to the ahol'e eauses or an)' cause whatsoel'er heyond the control of Lessec·, Lessc'e is prel'ented from conducting operations hueundu, SUl'l1 time sludl not be counted agaiust Lessee, and thi, Lcase shall be extended for a periud of time "Iual tu the time LC'ssee was so prel'ented, anything in this Lease to the eontrary notwithstanding. 14. Lessor herehy agrees that Lessee shall haH the right at an) time to '('deem for Lessor, by payment, any mortgages, taxes or other liens on the Premises, in the el'ent of default of paymcnt by Lessor, and be subrogated to the rights of the hulder thereof, amllhc undersigned Lessurs, for themsell'es and thdr hdrs, successors auJ assigl1s~ he.·elly surrcnder alld rcJ(,<lse aU right of dower and hOll1cstead in tilt PrclHisl'.') ¡usura!" as said right of dù\\'cr and homestead may in any way affect the pnrposes for which this Lease is mack, as recited herein. 15. Should anyone or mOI'e of the parties named as Lessor herein fail to exeeute this Lease, it shallnel'erthekss he binding UpOIl all soch parties who do execute it as I,'ssnr. The \\ord "Lðsor", as used in this Lease, shall mean anyone or more or all of the parties who execute this Lease as Lessllr. .\11 thc' prol'isions of this Lease shall he hinding on the heirs, suc'eessol's and assigns of Lessor and Lessee. IN WITNESS WHEREOF, this instrument is exec'uted as of the date lìrst ahOl'e written. Signature ~- ACKNOWLI"IJCxIENT STATE OF I . ìl./\ C(\\t-~-_LClQ,. » §. ~ -:J P';[JI\lIJlIAL COUNTY OF ---Ut.D- .__ ._._) (For OSl' io all slates) On this ;. ,º\~~~_day .of ~-ju L.~" .., 200S, bel,,,'':. Ilk .Ihe ond.:rsig-ned NOI:,,) Public' ili and I(¡r said coulil)' ,Ii III slate, persoll:"I)' appearèd Todd RusseHDavls. a,!Œl!III..""'J !lli!!ldt.l]illg,JJ1 his sok and selli!.IiJ~ )fi)1èrtv .!11.Ì!.D!.luallv and~.l\¡';lr¡)1 (orabelk f)¡IV:-,. tk,!,-'~l!~,~~lL_ known!u me to b<: tht P":¡::'l)I1(:-') '.dlu,:;,,: n;uJlc(s) IS slIbscnböJ w 111<: foregoing instrument, and :.Icknowltdgçd that ¡he sam~ was ~.\èculed and ddiver¡,:d as t!leil free ;:md voluntary a..:l IlII the purpùsl:S htr¡,;in seI f()rth In \\'illJL'sS whcr1..'uf I hl:feUIJlU s('t my hand allo ollici;¡ seal as of tilt: dale hertinilhove stated. My COlllllli"¡",, E\pires ~U.2---¡àaD_ . ~QÓ~~~~ No 'II)' I'll ,lie 1(,1 State of._ Mgy1\-~j-_.--- -1"i)1y-<-.J..1.Q\.0------ RçSIi.lin~/. ht SEAL ~ .... ,~ --' .. rAMIE SIDOOWr\Y COUNTY Of .' STATE 01' UltH" WYOi'.ÌlNU MI' ('()I~!.m.~,iUI EAi'B-'U: (,( 'n)l)( H \8 ':ìJ;..'6 I" ...........~...~ ....¡,~~ o.<-J. ."_......'--,.~_.....-..-~~........ ..........~ NOT^RY PUBLIC