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Home My WebLink About914187 PRODUCERS 88-PAID UP Rev. 5-60, No.2 (CBG) C' (\ r- 1'1 !) 9 , ! .' , ..,' RECEIVED 12/5/2005 at 2:55 PM RECEIVING II 914"187 OIL AND GAS LEAS E BOOK: 606 PAGE 729 JEAN~·E WAGNER LINCOLN COUNTY CLERf<, f<EMMERER, WY This Oil and Gas Lease ("Lease") is made this 21st day of April, 2005, by and hetll'een I\laQ!lnne R. Champlin, Ttuslee~ Champlin Family Trust dated November 9, 1987, whose address is P.O. Box 1159, Paull1a Valle\', C·\ 92061 ("I.essor", II'hether one or more) and Laramide E\pluration, LtC, a Colorado limited liahility company , whose address is 21390 Fast P.-ol!ress Place, Cenlenuial, CO 80012 ,("Lessee"). WITNESSETIl, For and Consideration of TEN DOLLARS, the covenants and agreements l'ontained hen-in, and other good and valnable consideration the receipt and sumciency of which are hereby acknoll'ledged, Lessor does herehy gr'lnt, demise, lease and kl nrlllsÏl'ely IIntu said LeSlee, I\'ilh Ihe ndusive rights for the purposes of mining, exploring by geophysical ¡\lid other melhuds and oper¡lting for aud produciug therefrom oil and all gas of whatsoever nalure or kiud (induding coalbed gas), aud laying pipelines, Ielephone and telegraph lines, building tanks, plants, power stations, roadways and slructures thereon 10 produce, save and lake care of said produl'lS (including dewatering of coalbed gas I\'ells), and the e\elusÏle surfal'e or subsurface rights and privilegl's related in auy manner 10 an)' and all such operations, and an)' and all other rights and pri\'ileges nel'essary, incident to, or l'on\'enienl 1',), Ihe openllion alone or conjointly wilh neighboring land for such purposes, all that l'ertain Iract or tral'ts uf laud situaled in Lincoln County, ..lYl'omill~ described to wit: TOWNSIlIP 19 NORTH, RANGE 118 WEST, 61h P.M. Section 28: N/2S/2 I and l'ontainillg 160.00 acres, more or less (induding all)' interesls therein \l'hkh Lessor may he,einafter acquire by ,el'ersiou, presl'ription or olher\l'ise)(the "Premisl's"). lu ,Idditinn to the abo\'e described laud, tbis lease aud the term "Premises" also l'on's aCl'relious aud auy small strips or parcels of land 11111\' or hereafter o\l'ned by Lessor whil'h are contiguous or adjacent to Ihl' above-mentioned land, alld iu l'onsideratilln of the aforenlentioned rash boons, Lessor ¡¡grees to eXCl'nk at Lessl'e's n'qnest ,Iny additional or supplemental instrumeuls for a more complrle or al'l'urak desrription of Ih,' land sO l'IJI ,·rnl. For Ihe purpose of determining the anlOunt of any rentals and shut-in royalties hereunder, the number of gruss aUes abo\'e sped tied shall I,,· ,kemed l'on-eet, whether adually more or less, 1. It is agreed that this Lease shall remain in full force for a term of Five (5) years from the dÜ'l'tive date hereuf ("Primary Term") and as long thereafter as oil or gas ofwhatsoeve,- nature or kind is produl'ed fmm the Premises or On atreage pooled or unitized therewith, or operatiollS are l'ontinued as hereinafter provided. If, at the expiration of the Primary Term, oil or gas is not being produl'ed fronl till' Premises or On aneage pooled ur unitized therewith but Lessee is theu engaged in drilling, reworking or dewatering operations thereon, then lhis L('ase shall eontiuue in fon'e so long as such operatious arc being l'Ontinuously prosecuted. Operations shall be considered to be eonlinuously prosl'cnted if not more than ninety (90) days shall elapse between the l'ompletion or abandonment of One well and the beginning of operalions for lhe drilling uf a snbseqoent well. If after disco\'ery of uil or gas on the Premises or on acreage pooled or uniliZí'd Iherewith, the production thereof should l'ease from any eause afte.· Ihe primary term, this Le'be shall not termiuate if Lessee l'Ommenl'es additional drilling, reworking or dewatering open1tions within ninely (90) days from date of l'essation of prod"ction or from date of l'omplNion of a dry hole. If oil or gas shall be disl'ol'ered and produced as a result of sud. operations at or after the expiration of the Primary Term, Ihis Lease shall continue in force so long as oil or gas is produced from the Premises or on acreage pooled or unitized Iherewith. 2. This is a PAID-UP LEASE. In l'onsideration of the payment made herewith, Lessor agrees that Lessee shall 1101 be obligated, exrept as othenl'ise provided herein, to l'ommenee or l'ontinue any operations during the primal')' term. Ll'ssee ma)' ¡¡( auy time or times doring or after the PrinJary Terlll sun-en del' this Lease as to all or any portion of Ihe Premises and as to any strata or stralum, by delin.-ing to Lessor or by 1ïling for n'wnl a release or releases, and be relieved of all obligations thereafter ael'ruing as to the al'reage surrendered. . J. Lessee l'OI'enants and agrees to pay royalty to Lessor as follows: (a) On oil, to deliver to (he credit of Lessor, free of l'ost in the pipeline to Ilhkh Lessee ilia) l'onnel't wells un the PrellliSl's, Ihe equal one- eighth (1/8"') part of all oil prodnced and saved from the Premises. (b) On g¡IS ofwhatsol'l'er nature or kind, inl'luding coalbed gas and other gases, liquid hydrol'arhons and their respedive constituent elements, l'asinglH'ad gas or othlT gaseous substam'l's, prodncl'd from tlH' Premisl's ("Cas") Lessee shall pay, as royalty, one-eighth (1/8"') of the net procel'ds realized by Lessee from the sale at the well. (l') On product produl'eå from the Premises Lessee shall pay, as royalty, one-eighth (1I8ih) of the net prol'eeds realized by Lessee fronl the sale at the well. 4. \Vhere Cas from a well capable of pmdul'Íng Gas (o,' from a well iu whkh dewatering opera lions ha\'e conIlIlL'nced), is nol sold or used after the e\piratioll of Ihe Prima.·y Tl'nn, Lessee shall payor tender as royalty to Lessor 'II Ihe address set forlh abo\'e One Dollar ($1.00) pl'r year per net mim'ral acre, sudl payment or ttnder to be made on or before the anniversary date of this Ltase next ensning after the expiration of ninely {(HI) days frolll th,' dale sUl'h well is shut in or dewatering operations are COnHHenced and Ihereafter On or before the anniversary dale of this Lease dnring lhe IH'riod snch well is shnt in or dewatering openltions are being l'Ondul'ted, 5. If Lessor OWIIS a lesser inlen'sl in the Premises than the entire and uudivided fee simple l'state thereiu, then the royalties (indnding any shnt-in gas royalty) he"ein pro\'ided fo,' shall be paid Ll'ssor only in Ihe proporlion whkh Lessor's interest bears to the whole and uudil'ided fee. 6. Lessee shall have the right to use, free of l'OSt, Gas, oil and water produl'ed on the Premises for Lesscc's operations thereou, exeepl water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Ll'ssee's pipeline below plol\ dl'pth. 8. No well shall bl' drilled nearer tlwn 200 feet to the house or barn now on the Premises without \l'rillen eonseut of Lessor. 9. Lessee shall pay for damagl's l'ansed by Lessee's oH'ralions to growing l'rops on the Premises. 10. Lessee shall hal'e thl' right at any time 10 remove allmal'llÍnery and fixtures (iududing casing) Lessee has plal'ed ou the PrenlÏses. II. The rights of the Lessor and Lessee hereunder may be assigned in \l'hole or part. No ehauge in olllll'rship of Lessor's intnest (by assignment 0" olherwise) shall he bindiug ou Lessl'e until Lessee has beeu fnrnished II ith notke, l'OuSisling of cerlified wpies of all rel'orlkd iostrumeots or dOl'uolents and other infolÏwHion nec,·",,,·y 10 establish a l'omplele chain of rCl'ord tille from Lessor, and then only" ilh respect 10 paynll'nts thl'reafter made. No other kind of nOliee, II hether aClual or constructive, shall he hinding on Lessee. No preseut or future divisiou of Lessnr's (",unship as 10 different portions or parl'ch of thl' Premises shall operate to enlarge the obligations or diminish the rights of Lessee, aud all Lessee's operalioll.s may he cOlldlll'ted II ilhollt rl'gard to any such division. If all or auy part of this Lease is assigned, no leasehold o\l'ner shall he liable for any ael or omission of any other kas(-huld 01\ ''''r. 12. Lessee, at its option, is hen'hy gil'en the right and power at any time and from tÌllle tu time as a reellrring right, eithl'r I,,'fur,· Or aftt'r produl'tion, as to all or an)' part of lhe Premises and ns to anyone or more of the formations thereunder, ttJ ptJol or unilize the leasl'hold estate and the mineral estate covered hy this Lease \l'ith other land, lease or leases in the immediate vidnity for the prodUl'lion of oil and gas, or separaldy for the production of either, \l'hen in Lessee's judgment it is m'cessary or adl'isahle to do so, aud irrl'speelil'e of \l'hether aUlhority similar to this nists \l'ith reSH'CI to sUl'h olher land, lease or leases. Like\lise units pre\'iousty fornll'd 10 iudude formatious uot producing oil or gas, ma)' IJe refonued to l',dude such lIon-prodndng Îonuatiuus. Tilc funllillg or r..~íunìl¡¡lg ùf aiì)' iiHit :;LaU Iii.: 'ìCt:v¡¡ìP~;:;¡h:.:d by Lcs:)cc c....:c:.::uÍi{:ri and Eling of :·'..'~'un! a de:..'!:lr~¡tlIjH of ~ut'h tH,H¡l;\(iilll or refonnation, \l'hich dedaralion shall desl'ribe (he unit. Any unit may indude land upon \l'hich a lI'ell has tt¡erelofore hel'n eompletl'll or upon II hkh operations for drilling ha\'e theretofore been commenl'l'd. Production, drilling, reworkiog or de\l'atering operations or a well shut in for lIant of a market anywhere on a llllit II hich indud,'s all or a part of this Lease shall be tn'aled as if it \l'ere production, drilling, re\l'orking or dewatering operations or a \1 ell shut in for want of a market under (his Lease. In lieu of the royalties else\lhere herein sped lied, induding shut-in gas royaliil'S, Lessor shall rel'eiv,' loy;dties on produl'tion from such unit only on Ihe portioo of SUi'll prodnl'tion allocated to this Lease; sUl'h allol'ation shall be Ihat proporlion of the nllil production that Ihe total number of surf"l'e acres l'u\'ered by this Lease and induded in the Unit I"",,·s 10 the lotal numher of surfa"e acres in sud. Unit. tn addition 10 the foregoing, Lessee shall ha\'e the right to unitize, pool, or l'ombine all or any part of tile Premises as to one or more of the fOlÏnatiuns lhereulukr willi other lands in the same general area by euteriug inlo a eooperalive ür unit plan of del'dopment or operalion appro\'('d lIy any gOl'enlnll'lItal allthority aud, from time to time, with like appl"O\'al, 10 modify, l'hallge or lermillate any sud. plan or agrl'ement and, in Slll'h e\'enl, the terms, wndiliolls alld prol'isiolls of this Lease shall be del'med moditìed to l'Onform to the tenlls, l'o,,,litiol1S, and prol'isions of sUl'h approved l'Ooperalive or ullil pia II of dc" dopll,elll or upnalion ¡1Ild, partkularly, all drilling and development requin'ments of this Lease, express or implied, shall be salisfied hy L'ulupliauce lIilh the drilliug alld developmeut requirements of sudl plan or agreement, and this Lease shall not terminate or expire duriug the life of sUl'h p/¡w or agreemeut. III the eveut that the Premises or any part thereof, shall hereafter be operated IInder any suth coopel'alive or unil plan of (kl'elopmellt or operaliun II h"relly the production therefrum is alloeMed to different portions of the land l'ol'ered by said plan, th('n the prodnttion allllcated 10 any particular tract of land shall, for the purpose of computing the l'Oyalties to be paid hereunder to Lessor, be regarded as having been produl'ed frolll the partkular tral't of land to \l'hid. il is allol'atl'd and not to any other Inll'l of land; 'Ind royalty payments to be made herl'under to Lessor shall be based upon production only as so allol'ated. 1.essor shall formally express Lessor's l'oment to any l'ooperalive or uuit pIau of dl'\'elopnH'nl or opl'ration adopled hy Lessee and appro\'ed by any govel'llnlenlal agen(')' by exel'uling the same upou request of Lessee. B. All express or implit'lll'ovenants of this I.ease shall be subject to all federal aud Slate Laws, E,el'lIti\'l' Orders, Hules or Hegulalions, aud this Lease shall not be tenninaled, in \lhole or in part, uor Lessee held liahle in danlages, for failure to l'omply there\lith if COlllpliailce is pre\ "lIll'd I>y, or if soel> f¡¡ilul'e is the resull uf, any sUl'h lAllI', Order, Rule or Hegulatiou. AllY 0'- iill,'rruplion l'allsed hy storlll, !lood, ¡¡ct ofCnd ur 0111,,1' "1('11 I' fur,,(- IIlaj('lIre PRODUCERS 88-PAlD UP Rev. 5-60, No.2 (CBG) ·t;·-_· ,- '" 'Ür-J /.~'J.LC) I n r I"i .") 0 "") d t ;j shall not be counted against Lessee. If, due to the above causes or auy cause whatsoever beyoud tbe control of Lessee, Lesse,· is prevcu!<'d from c,,,,dueling operations hereuuder, such time shall not be ('ouuted agaiust Lessee, aud this Lease shall be exteuded for a period of time e'lual to the time LessC(· \las so prevellted, anything in this Lease to the contrary notwithstanding. 14. IÆSSOI' hereby agl'ees that Lessee shall have the right at any time to redeem for Lessor, by payment, allY mortgages, (¡nes or other liens 011 the Premises, in the event of default of payment by Lessor, and be subroga!<'d to the rights of the holder thereof, ¡¡nd the undersigned '_esson, for th('II,,('/,-es and their heirs, successors and assigns,' hereby surrendu ¡¡lid release all right of dower and homeste'HI ill the Premises, illsofar as said right of drm, rand homestead may in any way ¡¡Hect the pnrposes for which this Lease is made, as recited herein. 15. Should anyone or more of (he parties named as Lessor hCl"ein fail to eX('eutl' this Leas<., it shall ne\'ertheless he binding upou all such parties \l'ho do cxecute it as Lessor. The \I'llI'd "Lessor", as uscd io this Le¡¡se, shallllleall an)' one or IllOre or all of the parties who C\el'lJte this Lease as Lessor. All the pro\'isions of this Lease shall be billdilÍg on the heil's, successors and assiglls of Lessor and Lessee. IN WITNESS WHEREOF, this instrument is executed as of the d¡¡le tint abo\'e written. Signature ACKNO\\'LFnc ,\1 ENT STAlE OF (\;J '\ J~; CA... ) (') ~\'o... ) § INn! \(IlI.\L COIINIY OF,-::?'-,v'1. ,'~~9 _9j~) . (For use ill alt slates) On tills ----.'J. _ _ddY uf ~ U iL~ . _ ___ 2005, bell,ro me, the undersiglled Notal)' Public in and ror said county and stak, per'ollally appeared ~ it. Chamolin, Trustee of th(' Chanmlin Falllilr Trust dakd Novcmber 9. 1987. kno\\'ll 10 lIIè to bè thl: IkrS¡)n(~} whos~ l1illl1¡,:(S} is .'Ì!lhsnibed h) III..: ;')reg()ing inslnlll1..:nt. <lIìd a('knowledged that the same \Va:; exeL'ut~d and ddiver\:d as their lì'¡,;¡; (¡lid \'olunt¡u)! act fur tile lidf }ÜSèS therein sèI fUrl¡ In witness wher-eu!" I hneunto S~( my halKI anJ (lni\:j~¡ :::.<.:al as of the cia!.: hêrein3bove stated. My C\\J1l1nission Expires 0-QX-, '1 j. .~cC;J , ~-i2 \ , " --l- .\.rLø- .... 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