HomeMy WebLinkAbout916582
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RECEIVED 3/10/2006 at 2:44 PM
RECEIVING # 916582
BOOK: 614 PAGE: 116
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
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AGREEM~lflp,!l* apd'entered iniO the1 i 15""'" :1 ¡!ay(>f Feb'fúâty,· : "; 20 06 " ;bÿ aiid'béíWëeii'NâIlcyR.. SiàúgÌitér' andBrad U: SiauJihter;
wife and husband
Whose post office address is 18095 W. Spencer Drive, Surprise, AZ 85374
, hereinafter called Lessor (whethe£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:
WITNESSETH. That the Lessor, for apd in consideration of Ten and more ($10.00+) DOLLARS cash in hapd paid, the receipt of which is hereby
acknowledged, and the covenants and agreements h.ereinafter contained, has granted, demised, leased apd let, and by these presents does grant, demise, lease apd let
~xclusively unto the said Lessee. 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, save and take care of said products, all that certain tract of lapd situated in the County of Lincoln, State of Wyoming, described as follows. to-wit:
, Township20 North: Range 115 West, 6th P. M.
k? Section 6: Lots 1(31.12),2(31.11),3(31.10),4(32.85),
( .) 5(42.04), 6(41.95), E~SW!4, NW!4SE!4
Township 21 NorthRa:n~e 115 West, 6th P. M.
Section 34: SE ~ SW ~, and that part of the SE;4 lying South of the
centerline of the Oregon Short Line Railroad Company
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I. It IS a.g¡:eed that thjs lease shall remam Iii· forcèfor a term offiye (5) years from March 12,2006and as )OIlg thereafter, as oil or gas of whatsoever W\t¡u'e or
~,is proØÌlci:d IN¡þ.:'.~~¡d ).~ed' p~~nîi~èS; Prþ~aFìéá~e:þ~öled:tlie~~with/<?rdrilliIíg operations' are,continu..ed' :ashereinaí!er;provided; If,. att:J.1.e;c¡¡pin¡.tion ,of pie
p~~fY l.ermof~ 1~~e,~jI, or g¡!S I~ not,be!pt p~Odud:d,~n tIi~!~asëdp~~~es or on a~reage p?oled !herewIth but Lessee IS tlien engage? m dri'Ilillg or re-working
openttip~ .·thereQq, t!1,\¡n,!h~ .Ie~e "sb¥l¡ ~IItI!1ue . ,~, ·.f~rc.e:' sO,.I~1,1g.. as .o~erJlUlJns. are' bemg. ~ntu¡uoùsly: proseçuted·,{(t: th~;ll:ílSea p'Je!BlS¡m~,or~\!nra.cr!lag~'PQpl¡;g
. therewIth; and opera.uons shall be'c'onsldercil'to be continuously proSecuted If not more than nmety (90) 'days':shall elaps¡: be~een:tþ.e'çomple(IOn,or!¡¡t¡an¡1Ç1nme::nt of
,,/ one well and the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on said land or on acreage þoolèd therewiilì, the
:., production thereof should cease from any cause after the primary term, this lease shall not terminate if Lessee commences additional drilling or re-working operations
-:"" ¿'\,within ninety (90) days from date of cessation of production or from date of completion of df¥ hole. If oil or gas shall be discovered and produced as a result of such
,-,,' operations at or after the expiration of the primary term 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 term. Lessee may at any time or times during or after the primary term surrender this lease as to all or any
ponion of said land apd as to any strata or stratum by delivering to Lessor or by filing 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 (1/8) 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 qu.arteriY, for the gas from each well where gas only is found, while the same is
being used off the premises. and if used in the manufacture of gasolme 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 date of this lease next ensuinç after the expiration of 90 days from the
date such well is shut in and thereafter on 01: before the anniversary date òf this lease during the period such well ~ shut m. Lessee's failure to payor tender, or
properly payor tender, any such sum shall render Lessee liable for the amount 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 be¥s to the whole apd 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 thereon, except water from the wells of Lessor.
7. When requested by Lessor, Lessee shall bury Lessee's pipe line below plow depth.
8. No well sball be drilled nearer than 100 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 lapd.
10. Lessee shall have the rigllt at any time to remove ill machinery and fiXtures placed on said premises, including the right to draw and remove casing.
11. The rights of Lessor aIid 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 information
necessary to estahlish a complete chain of record title from Lessor, and then only with respect to payments thereafter made. No other kind 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
assigned, 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 formations 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 formed to include formations not producmg oil or gas, may be reformed to exclude such non-producinfJ: formations. The forming or reforming of any
unit shall be accomplished by Lessee executing and filing of record a declaration of such wÿtization or reformation, which declaration shall descnbe the unit. Any umt
may include lapd upon which a well has theretofore been completed or upon which o~rations for drilling have theretofore been commenced. Production, drillm$ or
reworking operations or a well shut in for want of a market anywhere on a unit whIch includes all or a part of this lease shall be treated as if it were production,
dr. illinj¡ or reworking. operations. or a well.shu.t in for W. an. tof a,;marketunder this leàse. In lieu 'of the royalties elsewhere herein specified, including shut-in gas
royalties, Lessor sh<ill receive on production from the:: unit so .pooled ,royalties only on the portion of,such production allocated .to this lease; such allocation shall be
that proportioIl of the unit prO!luctionthat the tot;ll J1umber of surface acres covered 'by this lease and included in the nnit bears to the' totalnuinber of surface acres in
sU,ch umt. In addition to the foregoing, Lessee shall have the right to unitize, pool or combine all or any part of the above described lands as to one or more of the
formations thereunder with other lands in the same general area fiy entering into a cooperative or unit plan of development or operation àpproved 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 terms, conditions and
provisions of this lease shall be deemed modified to conform to the terms, conditions. and provisIOns of such approved cooperative or unit plan of development or
operation and, particularly. all drilling apd development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and
development requirements of such/Ian or agreement, and this lease shall not terminate or expire during the life of such plan or a¡¡reement. In the event that said above
described lands or anypar:t thereo , shall hereafter be operated under an)' such cooperative or unit plan of development or operation whereby 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 her¡:µnder to Lessor, be regarded .as havmg been produced from the particular tract of land to which it is allocated apd not to any other tract of
land; and the royalty payments to be made hereunder to Lessor shall be based upon production only as so allocated. Lessor shall formally express Lessor's consent to
any cooperative or umt plan of development or operation adopted by Lessee apd approved by any governmental agency b)' executing the same upon r~uest of Lessee.
13. All express or unplied covenants of this lease shall be subject to all Federal apd State Laws, Executive Orders, Rules or Regulations, and this lease shall not
be. terminated, in whole or in part, nor Lessee held liable in damages, for failure to comply therewith, if compliance is prevented by. or if such failure is the result of,
any such Law, Order, Rule or Regulation.· . '.
14. Lessor bereby warrants. aDd agrees to defend the title to the lands herein descnòed, and agrees that the. Lessee shall have the right at any time to redeem for
~sor, by payment. any mortgages. ,taxes or other!iens on the, above described lands. in the event of default of payment by Lessor' and be subrogated to the rights of
thehold~r!bereof,;apd the unáersi¡¡ned; ,Lessors., for theµ¡selves apdtheirheirs. successors and assigns; hereby surrender and release all right ofdowerapd homestead
jnthe pre¡µises !le;scqbedherein, Insofar as,said' right of dower .a¢ homestead may ,in, any way· affect thepw:P?ses for' which thislease is 'made, as recited 'herein.
~sor' agre~~.to ,¡;x\:Cutesucþ· further ,ass~!Illces as. ~y be requ,isite;for- the fuUand ;complete enjoyment ,of the nghtsherein granted." '" , : i ,'i.,"" ';, ' ..
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091.6582
C00117
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15.' Should any"oJie or IiIore {)f the parties hereinabove named as Lessor fail to execute this lease, it sball nevertheless be' binding upon all such parties who do
ex.ec~~ it!lsLes~Ç>r..:.:rI}~u~o,rd·4s,sor..Jls1LSe4 Jnthis It;II$e, sJ;y¡ll mean anyone or l!1QJ'e or all.ofthe parties,who,execlltecthisJease.as Lessor.,AlJ the pmvisions of
lliis lease sI1all be 15ïDdmg on the neil's. successors andasSI~ of Lessor and Lessee. . . . , .
"., 16, . Anythinç, (0 ,the¡;ontra¡y herein, no.tw.ith$tµ¡din~i if LeSsQr ,..QWJ,IS II greater interest in, the: lands described than is purported to be leased hen:by or hereafter
'a.cquireslffiy:addltioµ:µinterest ortitlt:.Ü,l theJaqds descnbed. tI1en tþis l~e Sball cover suchgi'þlter or additional after-acquired interest or title. and Lessor agrees to
give. Lessee,writtèn nonce of any such,acqµisition as soo.¡). as. the same.isn¡adc. in which event the royalties payable to Lessor sball be increased proportionately.
. IN WITNESI) WHEREOF. this ins~mentis executed as of the date first above written.
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Brad U. Slaughter
STATE "~F·.1J-rii~~/S )
TILl ) ss.
COUNTY OF "<Y1At:íÚ)Vfì· )
.... BEFO~ ~~.theundersigned,' àN.'å~;Public~in and for said County, and State' o~this..ó.3- dayof'(Y'(lr2.G~, 200(
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personally ap¡)éarédNancy R. Slatlghter and Brad Œ Slaûghtet. wife and husbantl,., ' : to me þown to be;the.ideptiéal
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J>~rs~~'deScribèd iri'andwho ex¢èûie(Cih~'l~hlïlli; ~dt.oregoÚlg inSt~¿q(~f w.dÍing,ånd :ackhøWl~dgê~l toIÍ1~i:ñâi;'.',; ihh '.','d\llY
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ëxecuted the' ~àffie~ as "their free and voluntary act' and deed for the usesandpurposes tliereiÍ1 set f0rfu.~ , ' '. '
. INDIVIDUAL ACKNOWLEDGMENT
IN WITNESS WHEREOF, I have hereÛ1lto set my hand and·aftìxed my notarial seal the day and
My COmmiSfl]ir' .,
, ..... FICJALSEAL
RODNEY N.BRATEK
8. NOTARYPUBLlG - State of Arizon.· a
" . MARICOPA COUNlY
. , . My Comm, Expires Oct. 4, 2008
Notary Public ,
Address: 5\X\..,,~ ~A ~
STATE 0F
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INDIVIDUAL ACKNOWLEDGMENT
COUNTY OF
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BEFORE ME; the undersigned, a Notary Public, in and for said County and State, on this _ day of ,2005,
personally appeared , to me known to be the identical person described in and who executed the
within and foregoing instrument of writing and acknowledged to me that duly executed the same as free and
voluntary act and deed for the uses and purposes. therein set forth.
IN WITNESS WHEREOF., I have heréµnt9set fuYhäßd and a~edmy notarial seal ',the day and year: lasf abov~ writt~n~
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When record
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to Antelope Land Services, LLC, P. O.t@~:!:~!::::t7 Kimball, Nebraska 69145.