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HomeMy WebLinkAbout914190 PRODUCERS 88-PAI[) UP Re\'. 5-60, No.2 (CBG) RECEIVED 12/5/2005 at 300 PM RECEIVING # 914190 OIL AND GAS LEASE BOOK: 606 PAGE: 735 JEANI'JE WAGNER LINCOLN COUNTY CLERI<, KEMMERER, WY This Oil and Gas Lease ("Lease") is made this 21'1 day of April, 200S, by and betwccn Stephcn Curtis Champlin, dealiu~ in his sole and separate propel·ty, whose address is 939 \'an!!ua.!:!.!, Austin, TX 78734 ("/.l'ssor", whether one or more) and /.aramide Exploration, LLC, a Colorado limited liahility company, whose address is 21J'iO East Pro!!ress Place, Centennial, CO ¡¡OOI2 ,("Lesscc'''). \\'ITNESSETII, For and Consideration of TEN OOLL\RS, the eo\'enants and agrel'llIents cOlltained herein, and other good alld \'aluable consideration the recdpt and sufliciency of which arc hereby acknowledged, Lessor docs hereby grant, demise, tease and let exelusilely unto said Lessee, with the exclusi\'e rights for the purposes of mining, exploring by geophysical and other metllOds and operatiug for and prodncing therefrom oil and all gas of whatsoe\'er uature or kind (including roalbed gas), and laying pipelines, telephone and telegraph lines, bnilding tanks, plants, power stations, roadways and strnctnres thereon to prodnce, sa\'e and take care of said pl"Oducts (including dell atering of coal bed gas wells), and the exclusive snrrace or subsurface rights and pri\'ileges related in any manner to any and all such operations, and any and all other rights and pri\'ileges necessal")', ineidt'nt to, or eon\'enient for the operation alone or conjointly with neighboring land for such purposes, all that certain tract or tracts of land situated in Lincoln Connty, Wyomin!! described to wit: TOWNS!J/P 19 NORTH, RANGE l!S WEST. 6'" P."!' Sectio n 28: N/2S/2 '4 and containing 160.00 al'feS, more or less (including any interests therein whirh IÆssor may hl'reinafter acquire by re\'ersion, prescription or otherwise)(the "Premises"). In :Illdilion to the abon described land, this kase and the term "Premises" also co\'ers accrdions and any small strips or parcels of lalld ¡II>lI' or he"eafter owned by Lessor which are cOlltiguous or adjacent to the abo\'e-mentioned laud, aud in cousideration of the aforemeutioned cash bonus, Lessor agrees to execute at Lessee's reqnest any additional or supplemental instrument.< for a more eomplek or aecurak desuiptiun of thl' land so l'enered. For the purpose of determining the amount of any rentals and shut-in royalties hereunder, the number of gross acres aho\'e specified shall he dl'élned l'orrect, II hcther actually more or less. 1. It is agreed that this Lease shall remain in full force for a term of Five (5) years from the l'I'fecti\'e dak hen'or ("Primary Term") and as long thereafter as oil or gas of whatsoe\'er nature or kind is produced from the Premiscs or Oil acreage pooléd or onitized therewith, or operatiolls arc l'ontinued as hereinafter pro\'ided. If, at the expiratioll of the Primary Term, oil or gas is not heing produced from Ihe Premises or on acreage pooled or unitized therewith but Ll'ssee is then engaged in drilling, reworking or dewakring operations thereon, thl'n this Lease shall cootinue in force so long as such operations are being cOlltinuonsly prosecuted. Operations shall be considered tu he continuously prosecull'd if not more thall lIinety ('iO) days shall elapse betwéen the completion or abandonment of one well and the beginning of operations for the drilling of a subsequent well. If after disco\'l'ry of oil or gas on the Premises or on acreage pooled or unitized therewith, the production thereof shonld cease from any cause after the prÍluary term, this Lease shall IIOt terminate if Lessee cOII.mences additional drilling, rewo"king or dewatering operations within ninety (90) days from date or el'ssation or production or from date of completion of a dry hole. If oil or gas shall be disco\ ered and prodol'ed as a result of such operations at or after the expiration of the Primary Term, this Lease shall continue in force so long as oil or gas is produced from the Premises 0" on acreage pooled or unitized therewith. 2, This is a PAID-UP LEASE, In consideration of the payment made herewith, Lessor agrees Ihat Lessee shall not be obligated, except as otherwise provided herein, to commence or continue any operations during the primary term. Lessl'e may al auy time or tinles during or after the Primary Term surrender this Lease as to all or any portion of Ihe Pn'nlises and as to any strata or stratum, by deli\'eriug to Lessor or by lìlillg for record a release or releases, and be relieved of all ohligafion~ thl'fl!Hftcr accruing as to the acn:agc SUITl'Hdl'red. 3. Lessee co\'enants and agrees to pay royalty to Lessor as follows: (a) On oil, to deli\'er to the credit of Lessor, free of cost in the pipelinl' to which I.essee may conllect II ells UII Ihc Pn'mises, the equal olle- eighth (1/8"') part of all oil produced and saved from the Premises. (h) On gas of whatsoe\'er mltnre or kiwi, iuelulling coalhed gas and other gases, liquid hydroearhons and their respecti\'e constituent ell'ments, l'asinghead gas or other gaseous substanl'és, produced from the Premises ("Gas") Lessee shall pay, as ruyalty, '''Ie-eighth (1/8''') of the net proceeds reaiized by L.essee from the sale al the well. (c) On product produced from the Premises Lessec shall pay, as royalty, one-eighth (1m"') of the net pron'Cds realized hy Lessel' rrom Ihe sale at the well. 4. \Vhere Gas from a well capable of pmdncing Gas (or from a well in which dewatering operations ha\'c l'omnleHced), is not sold or used after the expiration of the Primary Term, Lessee shall payor tender as royalty to Lessor at the address set forth abon One Dollar ($I.O( ) per year per net mineral acre, such payment or tender to be made on or before the anni\'ersa,'y date of this Lease next ensuing after the l'\piration of Hiul'l)' (90) days frolll the date such well is shut in or dell atering oper:llions lIre commenced and the"eafter on or before the annh'ersary date of this I.ease during the period sUl'h II dl is shnt in or dewaterillg operations are being cOlldncted. 5. If Lessor owns :1 lesser inkrl'st in the Premises than the entire and undi\'ided fee simple l'slate therein, thell the royalties (iududing an)' shut-in gas royalty) herdn provided for shall be paid Lessor only in the proportion II hieh Lessor's interest bears to the whole and nudil'ided fee. 6. Lessee shllll ha\'e the right to USl', free of cost, Gas, oil and water prod need on the Premises for Lessee's opuations Ihl'reon, l'xCl'plllatcr from the wells of Lessor. 7. \Vhen requested by Lessor, Lessee shall bury Lessee's pipeline bl'low plow depth. 8. No well sl1ll11 be drilled lIea,'e,' thall 200 feet to the house or harll 11011' UII the ¡'remises withont writteu consellt of Lessor. 9. Lessel' shall pa)' for damages cansed b)' Lessee's operatiolls to growillg crops Oil the Premises. 10. Lessee shall have the right at any time to remo\'e all machinery and Iì\tu"es (ineludiug casillg) Lessee has placl'd OU the PrenlÍses. 11. The rights of the Lessor alld Lessee hereunder may be assigued in \I hole or part. No changl' iu ownership of I ,-"or's inll'rl'st (by assigumcnt or otherwise) shall be binding 011 Lessee until Lessee has been furnished with lIotke, eonsistillg of certilied l'opies of all recontl'd instnllnents or documellls and other infonHaliun necessary to establish a complete ch'lÍlI of record title from Lessor, alld Ihen only willi rl'Spel't to payml'lIt.< therl'aftl'!' made. No ,,¡he¡' Idnd of notice, whether actual or cOllstructi\'e, shall be hiuding on Lessee. No present or fulurc dilision of Lessor's o\\uership as to dillerl'ut portioos or parcels of Ihe Premises shall open,tc to enlarge the obligations or dimioish thc rights of Lessel', and alll.essce·s opcratjolls may bé conducted Il'ithout regard to ¡¡ny such di\'ision. If all or any p¡¡rt of this Lease is assigned, no leasehold 0\\ ner shall he liahle for allY act or oulÍssion of any otller lc-asl'llOld owner. 12. Lessee, at its optiou, is hereby gi\'en the right aud power al any time and from time to lime as a recurring right, eithl'!' lIerore or after produdion, as to all or any part of the Premises aud as to anyone or IlIore of the formations thereunder, to pool or unitize the leasehold l',tatc alld the miul'ral estate co\'ered by this Lease with other land, lease or leases in the immediate \'iciuity for Ihe prodnction of oil aud gas, or separately for till' productiou of either, when in I.essee's judgml'nt it is necessar)' or ad\'isable to do so, and irrl'spel'ti\'e of whetha authority similar to this exisls with respcd to snch other land, lease or lellses. Likewise uuils pre\'iously formed to illelude formations not producing oil or gas, may lie reformed to exl'iude sucll lIoll-producing formations. The forming or reforming of any ullit shall be accomplished by Lessee exel'utillg and tiliug of record a del'iaratiulI of such unitization or reformation, which deelaration shall descl"ibe the uuit. Any unit may inelude land upon which a well has theretofore heell cUUlpll'tl'd or UpOIl which openltiullS for drilling have flH!retofore heen cOBHncnced. P,.odurtion~ drilling, reworking 01' dewatering npl'ratiolls or a \\'('11 shill ill 1"01" walll of a Illarket an)'where on a Ullit which iueludes all or a part of this Lease shall he treated as if it were Jroducti"u, drillillg, reworkillg or dewatl'l'Íug operations or a well shllt in for want of a market under this Lease. In lieu of the royalties elsewhere herl'Î1I specilil'd, including shul-iu gas royalties, Lcssor shall rn,-jll' royalties Oil pmdnctioll from such unit ollly on the portioll of suel¡ production ,¡ located to this Lease; such ¡¡lIocatiou shall lie thaI proportioll of the ullit prudlll'liou that the total number of surface acres co\'e"ed by this Lease '!lid illeluded ill the Llllit bears to the totalllul\lher of surface acres ill such Llllil. III addili"u to the foregoillg, Lessee shall have the right to unitile, pool, or comhille all or any part of the Premises as 10 one or ulOrc of the fUnllali"us thereunder \lith other lallds in thl' same general a,'ea by elltering into a cooperati\'e or unit plan of de\'elopment or operation appro\'ed hy any gO\'ernmelltal authority alld, from time to time, \lith like approval, to modify, change or terminate all)' sucll plan or agreement and, ill such e\'ellt, the terms, l'Ollllitions aud prolisiulls III' this Lease shall be deemed mudiHed to conform to the terms, cOllditions, and provisions of such appro\'l'd eooperati\'e or ullit plan of develupmelll or upl'ratjun and, particularly, all drilling ¡¡nd de\'elopment requirements of this Lease, C\press ur implied, shall lie satisHcd I,y complianl'e wilh (he drilling and development requirements of such plall or agreement, and this Lease shall not terminale or e\pire durillg (he life of such plan or agreeulClIl. III the e\'ellt tllat the Premises or any part thereof, shall hereafter be operated ullder allY such ('oojJerati\'e or unit plan of dell'luplHent or operatioll "llereby the prodllction therefrom is allocated to differellt portiolls of the land co\'Cred by said piau, thell tile produl·tion allocated to allY particular tnlct of lalld shall, for the pllrpose of computing the royalties to be paid hereunde¡' to Lessor, be regarded as ha\'illg beell produl'ed from the particular tract of lalld to whieh it is allocated and IIOt to allY other traet of land; alld royalty paymen(s to be made herennder to Lessor shall he based IIpon production ollly as so allocaled. Lessor sllall formally express Lessor's ronsellt to an)' cooperati\'C or unit plan of de\'elopment or operation adopted by Lessee and approled by any go\'enllllental agency by executing the same upon reqnest of Lessee. 13. All express or implied coveuants of this L.ease shall be subject to all federal aud Stale Laws, Exel'lIti\'e Orders, Rules or Regul¡¡tious, aud this Lease shallllot be termillated, in whole or ill part, nor Lessee held liable in damages, for failllre to compl)' there" itb if compliance is prevenll-d hy, úr if Slll'h failu"e is the result of, any such Law, Order, Rnle or Reglllation. Any dl' ay or interruption cansed by storm, nlwd, act of God or other enlll "I' rOrel' maj.-ure shall not be l'oullted agaillst Lessee. If, due to the above C¡¡USeS or au)' cause whatsoe\'er hl'yuud the cUlltrol or Lessee, Lessee is pre\'enlcd 1'1'011\ condncling : (/ l 1 "/y -' ......./: -','--1 .0'0' .,'...:'.11....; ('\ J '\..' ~,j t) ,{"\ ..)0 PRODUCERS 88-PAID UP Re\'. 5-60, No.2 (CBG) operations hereunder, such time shall not be counted against Less~e, alld this Leasc' shall be utended for a period of time ~i U;¡1 tu thc till)e' L~ss~e was so Jr~vented, anythillg in this Lease' to the eUlltrar)' notwithstandillg. 1·40 Lessor hereby agrees that Lessee shall have the right at an)' time to ndeem for Le'ssur, by pa)'ment, all)' mortgages, taxcs or other liens 011 tile Premises, ill the e\'ent of defalllt of pa)'ment by Lessor, and be subrogated tu the rights of the holdl'r thereuf, and the ulldersigned Lessors, for thelllsell'es alld their heirs, snccessors alld assigns, hereby surrender and release all right of do"er ¡Ind hOllll'stead ill the ('runises, ills<dar as said right of dower and homestc'ad may in allY \\'ay aflect the purposes for which this Lease is made, as reciteù herein. 15. Should an)' 0111' or more of the parties nameù ¡¡S Lessor h('f('in f¡¡il to execute this Le'¡¡se, it shallne\'ertheless be I,i"diug "pon all snd] parties who do e\t('ute it as 1,('5501". The word "Lessor", as used in this Ll';"l', slJaIl mean anyone Or murl' Or ,III of thl' partie's who execute' this Lease as L~ssor. All the provisions of this Lease shall be binding on the heirs, successors ¡¡nd assigns of Lessor ¡¡nd Lessee. IN WITNESS WHEREOF, this instrument is executed as of the date first abo\'e written. Sigllatl~') . t:1. /\ 'i~¡J-"J?1· ~ ~4--~ _ '> (~{//(l..tiC--- StepheìP'Curtis Champlin ACK:'WII't.EDG,\1 ENT ~~ .~......:..-;.¡:.,.............. ] /i~\;:'f.~~~,~ SOl HA L. GARCIA ~h"~Ì7'!' ¡ M ( COIl1f,II~SIOI ¡ :.:.. O_"~..I"--:.~:~ Auguot 5, 2007 ~::~~~~--;-~~ STATE OF 5e x.Q5______~) -I-- ) §. INDI\'WUAL COUNTY OF--.--:J i OJ.A S ) (For ust' ill all stall's) 00 this '2_Í\CA day of___J~Ú CU/}-..:.___._.___..__ 2005, before lIle, the undersigned Notary Puhlic iu and Ii,r ,..id couuly ,me! sU,Ie, pc'"""illy app,:c,rcd Stephen Curtis Cham13lin. rlealin!! ill his sole :wd s(' )arate )roP~r". known to Ilìe to be the pcrson(s) W!JüC:;è name(s) is subscribed to ¡hI:: forl..·gl,'¡ing iJJ,.,:t]'lIlIlt:l1t, ~ JKI ¡¡cklll)\\'k:dgl'd tll,1I IIII.' S;IJlh;; was C.\è\.'ulçd and d~li\'èn;,'d i.tS 11]~ir jh:e and \'OIUl1(31)' act for ¡he purposes therein sd f¡)rth In witnös when:of I hèft:llllto set IJI)' hand and otlicial se~11 as uf II};.: d;¡tl' II.:-reill~Jhn\'c SI.iICd. C/\tl J . CÎ. VL Notllry PUbliC~S~te of...=te ~O--S-~~- I '1LO S:rL.1l1 (I (tX~_h;;LpLL1LL A lid u\ Tx -'to/) ~)'Z5' H~sidillg At J I 1\ly Commission Expires -~/lsJ () '7 SEAL