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HomeMy WebLinkAbout916581 ?~~?~~~Jf~it! 00114 , . RECEIVED 3/10/2006 at 2:43 PM RECEIVING # 916581 BOOK: 614 PAGE: 114 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY , '.j .' . : . .. '. r :~, ., PROD(JC~S'88..PAîb'ö'P ~e~,)..~, ~o.-~~.~p~:c~~P;%f'\ )¡ .' " , \'. ;'. ~~ tF>'\}f:'fi.?f:· }:' tj fj¡,~ ,<~QJt,~ND GAS LEÁSE";;' AGREj3MENT, Made and entered into the husband and wife 15~ day of . February , 20 ~, by and bem:een James M. smith and Susan M. SIIiith, Whose post office address is 2028 Hillcrest Drive, Rock Springs, WY 82901 ,hereinafi!:r call~ Lessor '(whether 'one or more) and Zenergy, Inc.. whose post office address is 'One Warren Place, 6100 S. Yale Ave., Suite 1700. Tulsa, OK 74136. hereinafter called Lessee: WITNES$ETij.~t the Lessor. for, and in consideration .of Ten and more ($10.00+) DOLLARS cash in hand paid, the receipt of which is herehy aclrnowledged, and the I:()venants and agreements hereinafter contained. \1as granted, demised;, leased and let. and by these presents øoes grant. demise, lease'and let exclusively uuto the said Le$see. the land hereinafter described. with the exclusive right for the purpose of mining. exploring by geophysical and other methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, with rights of way and easements for laying pipe lines, and erection of structures thereon to produce, ~ave and take care of said prodllcts, alIth;lt çeflain tract of lanq situated in the Coµnty of Lincoln. State of Wyoming, described as follows, to-wit: Township 20 North, Range 115 West, 6th P. M. Section 6: Lots 1(31.12), 2(31.11), 3(31.10), 4(32.85), û 5(42.04), 6(41.95), E'hSW~, NW~SE~ Township 21 North,Range 115 West, 6th P. M. Section 34: SE\4SW~, and that part of the SE~ lying South of the centerline of the Oregon Short Line Railroad Company " "--' andcotitaining 468.51 acres, more m)ess. '. , .' . ". ....', ...',. '. ..' '." ; . .'. . L It is agreed that this lease shall rem;µninJotcè fpr a te\"DlQf ffve(5) years from March 12; 2006 andas long thereafter as oil or gàS of whatsoever nature or ki¥ is prodµced f!"omsaid ~eaSed pr~riúSes 9~ P!I., a;cTçag~ }IQole¡UþerewitJ¡; I?~"tlrilling operations are.col1tinu,edas hereinaf!er, , pr,i)yided. ,If,; at ili.e.expirationof.Jh~' prunary tenn of thIS le;ise, ,oil ~r gas IS not)Xrl :lgprodtt,çe{Jq[\ the.leasÇ(1pr~mtSes or on acreage pooled therewIth but Lessee IS then engaged m drilling or re-w()rldng' operati°tlS thereon,'tJ¡en tj1is lease S~c(ll1tinuein,f0r.c¢:sø I\!~g'as pper,ati0ns ,arebeing~ntinµouslyprosecuted.O!1 tI1e"I!:3St:()pT,etµise~or on açrç¡,¡ge P99Ied, therewith; 3I1d openitipus: shall be cOnsIdered to be'c~n~úously prosecuted tf not more th~ nmety:(90) ~aysshall,elap,~~þetw~\1th~,Çor\))lIí¡n.PP9rªI>AAd91JI!1et:i.t~f' one well and the begmnmg of operations for the drillmg of a subsequent well, If after dIscovery of oil or gas on satd land or on acreage pooletl thereWlth.thtf' production thereof should cease from any cause after the primary tenn, this lease shall not terminate if Lessee commences additional drilling or re-worldng operations within ninety (90) days from date of cessation of production or from date of completion of d~ hole. If oil or gas shall be discovered and produced as a. result of such operations at or after the expiration of the primary tenn of this lease, this lease shall continue m force so long as oil or gas is produced from the leased premises or on acreage pooled therewith. 2. This is a PAID-UP LEASE. In consideration of the down cash payment, Lessor agrees that Lessee shall not be obligated, except as otherwise provided herein. to commence or continue any operations during the primary tenn. Lessee may at any time or times during .or after the primary tenn surrender this lease as to all or any portion of said land and as to any strata or stratum by delivering to Lessor or by fiJing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. . . 3. In consideration of the premises the said Lessee covenants and agrees: 1st. To deliver to the credit of Lessor, free of cost, in the pipe line to which Lessee may connect wells on said land, the equal one-eighth (118) part of all oil produced and saved from the leased premises. 2nd. To pay Lessor one-eighth (118) of the gross proceeds each year, payable quarterly, for the gas from each well.where gas only is found. while the same is being used off the premises. and ifused in the manufacture of gasolIne a royalty of one-eighth (118). payable monthly at the prevailing market rate for gas. 3rd. To pay Lessor for gas produced from any oil well and used off the premises or in the manufacture of gasoline or any other product a royalty of one-eighth (1/8) of the proceeds. at the mouth of the well, payable monthly at the prevailing market rate. . 4. Where gas from a well capable of producing gas is not sold or used, Lessee may payor tender as royalty to the royalty owners One Dollar per year per net royalty acre retained hereunder. such payment or tender to be made on ,or before the anniversary da~ of this lease next ensuin$ afterthe expiration of 90 days from the date such well is shut in and thereafter on or, before the anniversary date of this lease during the period such well is shut m. Lessee's failure to payor tender, or properly payor tender, any ~uch sum shall render Lessee ,liable for the, \IßJOUDt due but it shall not operate to terminate this lease. , 5. If said Lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein. then the royalties (including any shut-in gas royalty) herein provided for shall be paid the Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee. 6. Lessee shall have the right to use, free of cost, gas. oil and water produced on said land for Lessee's operation tJ¡ereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipe line bèlow plow depth. 8. No well shall be drilled nearer than 200 feet to the house or barn now on said premises without the written consent of Lessor. 9. Lessee shall pay for damaBes caused by Lessee's operations to growing crops on said land. 10. Lessee shall have the rigllt at any time to remove all machinery and fiXtures placed on said premises, including the right to draw and remove casing. 11. The rights of Lessor and Lessee hereunder may be assigned in whole or in part. No change in ownership of Lessor's interest (by assignment or otherwise) shall be binding on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other infonuation necessary to establish a complete chain of record title from Lessor, and then only with respect to payments thereafter made. No other Idnd of notice. whether actual or constructive, shall be binding on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is a§signed, no leasehold owner shall be liable for any act or omission of any other leasehold owner. 12. Lessee. at its option, is hereby given the right and power at any time and from time to time as a recurring right, either before or after production. as to all or any part of the land described herein and as to anyone or more of the fonuations hereunder. to pool or unitize tlie leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in Lessee's judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease or leases. Likewise, units previously fonned to include fonuations not producmg oil or gas, may be refonned to exclude such non-producing formations. The formin~ or reforming of any unit shall be accomplished by Lessee executing and fùing of record a declaration of such unitization or refonuation, whIch declaration shall descnbe the unit. Any umt may include land upon which a well has theretofore been completed or upon which op<:rations for drilling have theretofore been commenced. Production, drillm~ or reworldng operations or a well shut in for want of a market an}"Vhere on a uuit whIch jncludes ~ or, a part .of ,d,ús_I~e,~J.¡aIl be treated as if it were production. drillinB 'or reworking' oper~tions' or' a'we~'sbufin'Jò,i . ~!lDt df a' market u~der'thiS lease:,' In' 'I~eíi : of. ¡hi;\ roy;µties; elsFwh¢re bç'rein. sPecified, ,Wcludin,g ;~h~lcing~ royalties, ~ssor'sha1l re.cetve on productionfromthe urntsopooledroyalties only on th,epqrtJon 'of, such prü9µction ~oçate4,to thi$ le3$,e;such ,allocation shall ~e that proportion o~ !he urnt producti~n that the total number, of s1;1rfact: acr~ covered by thIS I~e and l :Içh\Ø~ ill the. urnt bears to. ,the total 'number, of surface acresm such urnt. In addItion to. the foregomg" Lessee shall have the nJ$no u!"~e.pool or coü;1bme all~r anyparto( the above descnbedlljDds as to one or more of the fonuations thereunder Wtth other lands m the same general area 6y entermg mto a cooperative or urnt plan of development or operation approved by any governmental authority and. from time to time. with like approval. to modify., change or terminate any such plan or agreement and, in such event. the teQDS, conditions and provis!ons of this I~e shall be d~~. mod. ified to co¡úorm. t.?the t.erms, co.nditions.. and ProVisl.?ns ~f such approved ..COOpe.. rati. 'vé, or 1;1nit P. la~ P.f devel~P!llent or operation and, particularly. all drillmg and development requirements of thtS lease. express or unphed, shill be satISfied by compliance WIth the drillmg and development requirements of such plan or'agreèment,. and this lease Shall, not te.rminate or expire during'the life of SUCh.,Plai} or agree. m. e,.Dt. In the event that said above descritied lands or any part thereof. shall hereafter be operated UDder any such cooperative or unit plan of development or ,operation w/Jereby the production therefrom is allocated to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the purpose of computing the royalties to be paid hereunder to Lessor, be 'regarded as havmg been produced from the partic~lar tract of IljDd to wIiich.Jt is allOCàted ,and not to any other tract of land; and the royalty paymeóts to be made hereunder to Lessor shall be based uponproduction0Ü\y as so allocated~I,essor,shallJormally express Lessor's consent to any cooperative or urnt plan of development or operation adopted by Lessee and approved by any governmental agency by executing the .s,ame upon r~uest of Lessee. 13. All express or unplied covenants ofthislease shall be subJect to all Federal and State Laws, Executive Orders,'Rules or R,egulations. and this lease shall not be terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if complil Dce is prevented by, or if such failure is the result of, any such Law, Order, Rule or Regulation. , .,...,' .' ..' '. , ", . . "., ,', .,..... ' 14. Lessor hereby warrants and agrees to defen~ the title to the lands ~erem descf!bed, and agrees thattJ¡e ~ssee sh¡¡)l bave the ngl!t at any time to redeem fo~ Les. Sor. bY. payment,. any. mortgag~. tax.. es.o.. r O.ther I. tens..on f!1e a.bov,e ~esçr!bed . Ian. .ds. '. m. the. e.ven! ()f~e.f! . \IItO..f. P..a. Y. m. enf.hY. . Les. ,sor..and. '.~~ S. U" brog. a. ¡ed..... to. th. e ri.ghts,' O,f !he hOI. de.r t~ereof,..an~ the. U. ndel. ~rStW1. ed oLe.' ssorS.! fi.Ö. r th..' e~. elves. and. th.' .ç.Ir.,. he..us. ' s,u. C.ces~ors aµd. '.', \lSs., .Igus.. ;, Þ. . ere. b>,. su. g-eµðer'.' and. .r.,e~eas. ~t¡ ,í\II rJ~~ O.f~o. weT imd. '. .bome. S.œ.a. ,d m'the premtSes descnbed herem. 1DS0far äS saId'ngItt of 'dower and homestead may m anywayaffecttþe P\JI'Pose$,f9rwl¡:ìc~ ~}easeISJ;nade,as,rectted,lïerem. Lessor agreè~'to'executesuch furthefassurancei¡' asmaY1k¡rect~sïté for,tl~e fulliuiil ffimþl~~;~n)jj~nt,;~f ih.~ :ngIi~ 'l1étéÌJ!~W:¡ .: ;~.!:~:", ; ." ",:' :'::', :', ,;¡~'¡' "f;'~:~;,':'~'~::""::,:,'::.,,;ij'.;;,:,j~:~:0~:i~~i~[~f~::;;:;'~.~:f;·[i::'::;~·:;;; ";;', i;';~:l~'~f,:t;~;~~,:¡:ili!f~:;¡fi~j;f~~i;{j:,:::~~!J:;~ f';.1,': =,UH .~f -~¡:~':;}. . :.:-, .'.: .!:- jft '-:'.<', ~:dt,-. :'}'. U·'·l,:~ .'~., ,j."':' ~..::i.,' ')fr,~H;';:· ~'''t_~.;:t": '·P.:·i !-;:. !..\I'7': J! Pi. :~>.·'I·r, ·.1, (..1.-,.;); ~;>.:~,..~' ,:..;~ ':,!'; ; '¡p;.! t.·;:)·,:.!, .-.! ,'I' ';', " ]':': ~._' ';'·H, ". "J ,I;. I" :jl ?"U J 1·:: '" . -\!~f ¡ i . ¡,)" ~., ..' ·,;"f'·;",;, " I ¡ '~ ~ ~ ~,. \ I '¡,~;.: . '~; ¡ ,. .' ,; . . ~ ,. 1;1' ,::::",1. : 'I ~ ;'. rL¡' ¡:" " ·-f " C00115 0916581 . ," ':!.:.¡,; -. ,'.("!. . , :.1:;".:'.-. ..! "J . .. '.. . .::, 15:: Should anyone or more of thepårties lièièínabove named as Lessor fail to execute this lease. it shan:nevëriheJ~sbe 1ÍindingµpO~' allsiicb partieswþodo execute it as Lessor. The word "Lessor, :as w¡èd in(lùslease, , shall mean anyone òr more or all of the parties who execute th!$lea,se as Less.òr. All the prQvisiollS of this lease shall be binding on the heirs .slJcCeSsors' and. a$si~ of Lessor and Lessee.·. . , . . , . ' .' ' . . .'. .: . ' '. , ' , , ~6.Anythin~.tQth~CQPtrllfY~ere~ notwithstanding, íf Lessor I!WDS a greater, interest in the lands d~~ribed than is p~to be lc;ase.(lherebyor hereafter ,acquires any addltiol J!J Interest,or title"m the lands descnòed, then $is lease shall cover such grea1eror additional after-acquIred mterest or title, and Lessor agrees to give Lessee written notice of any such acquisition as soon as the same is made, in which event the royalties payable to Lessor shall be inëreased proportionately. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. ' JUo~ 711· J~ Súsan M. Smith .:":";'J,',;';.;-..:.. . ~.-; ì' :"'~" -, ....., .. k.ø" Ø-":./d_ . . James M. Smilh ~'--....-"""""""'. ,"--- --.-""'-----. STATE OF ) ) ss. INDIVIDUAL ACKNOWLEDGMENT COUNTY OF ) , BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on thisÇÁ~dáY Df f ~Ö06, p~rs~nally appeared . ]am~s M.'Smith ~d Susan M. Sìnifu, husband'and wife' :, '., ' to, me know~ to be the aèntic~ :"...,'_.,' " ,':' .,",. ":. "" ,.,':" "', ,"·_<,::·~¡.,l:,.:.·'-:?--·'~.:__~>,--". '".~,_,..,."". _,.!of·_, . _. ", ": . . p;¢rso~ descDÞ.¢4,in)µ~,wboéxci,utedt4ewithin and foregomg iruitnÏinent of'wrltirig ~d açJmowledged to meihat . they duly :'f;, :""-"-"',_:":'.""'.'.'~.;«,";' ,'::' :.:;,',' '_ '. :'~";'- .~ !I', ,.;i....- "i",.", executed the "Sáìlie;ás·" their free and voluntary 'actand4~eØ for th~ 'u,ses and purposes therein set fottl,i~ " IN WIT~SS WHEREOF, I, bave hereimto set my band and afftxed my no seal the ðay arið year ïåst 'aÞàvewritten. yye Public. , , Address: J4m¡y{ (1')1 Ptult STATE OF, ~),-_.. ) ss. INDIVIDUAL ACKNOWLEDGMENT COUNTY OF ) BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this _ day of , 2006, personally appeared , tQ me known to be the identical person described in and who executed the within and foregoing instrument of writing andacknowleq~ed to me that duly executed the sattle as free and voluntary act and deed for the uses and purposes. therein se~ forth, IN WITNESS WHEREOF, I have hereunto set my han!! and afftxed my notarial seal ~e,day and year la~(aQovewri~eri. My CDmmissiOD:Éipfre~:, .... Notary Public Address : "ii',. ' .' : , , ." ,y'" . .. ; ", .' "~" .-; " t, - í ~ _J:'- . .~. '> 1 'f.. ~¡" .- '" t.: .': - ~... .. ;-., ':"" .... .,.;;}: ." .J.;'~,' L" '-",~ :.t·,' ;,:'.(L 'I',', ...., .:' .,' ;G~" ;' i'· ... :,: ~; :: I, '.' .':. i'4 ,- '; :.",. ..: ,,~. ...- ~;'I} When record ;ì.l¡i.'¡' ~t~fl""'1_ ò Antelope Land Services, LLC, P. O. ¡!8¡ili!ä~~r, Kimball, Nebraska 69145.