HomeMy WebLinkAbout916682
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RECEIVED 3/15/2006 at 10:05 AM
RECEIVING # 916682
BOOK: 614 PAGE: 389
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
0Q~~89
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PRODUCERS 88-PAID UP
Rev. 5-60, No.-2 - 8pt.-Arnended
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OIL AND GAS LEASE
AGREEMENT, Made and entered into the
151h
day of February
,20 -º2-, by and between Jack A. Smith, a single person
Whose post office address is CIO Nancy R. SlauJ;thter, 18095 W. Spencer Dr., Surprise, A:Z. 85374
, hereinafter called 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:
WITNESSETH, That the Lessor, for and in consideration of Ten and more ($10.00+) DOLLARS cash in hand paid, the receipt of which is hereby
acknowledged, and the covenants and agreements hereinafter contained, has granted, deßÚsed, leased and let, and by these presents does grant, deßÚse, lease and let
exclusively unto the said Lessee, the land hereinafter described, with the exclusive right for the purpose of ßÚning, exploring by geophysical and other methods, and
operating for and producing therefrom oil anà all gas- of whatsoever nature or kind, with rights of way and easements for laying pipe Hnes, and erection of structures
thereon to produce, save and take care of said products, all that certain tract of land situated in the County of Lincoln, State of WYOßÚilg, described as follows, to-wit:
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Township 20 North, Range 115 West, 6th P. M.
Section 6: Lots 1(31.12),2(31.11),3(31.10),4(32.85),
5(42.04), 6(41.95), E~SW~, NW~SE~
Township 21 North, Range 115 West, 6th P. M,
Section 34: SE ~ SW ~, and that part of the SE ~ lying South of the
centerline of the Oregon Short Line Railroad Company
and containing 468.51 'acres. more or less.
1. It is agreed that thIS lease shall remain in force for a term of five (5) years from March 12, 2006 and as long thereafter as oil or gas of whatsoever nature or
kind is produced from said leased preßÚses or on acreage pooled therewith, or drilling operatioilS are continued as hereinafter provided. If, at the expiration of the
primary term of this lease, oil or gas is not being produced on the leased preßÚses or on acreage pooled therewith but Lessee is then engaged in drilling or re~worldng
operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the teased preßÚses or on acreage pooled
therewith; and operations shall be considered to be continuously prosecuted if not more thànninety (90) days shall elapse between. the completion or abando.n,ment 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 OJ' on acreage pooled therewith, the
production thereof should cease from any cause after the primary term, this lease shall not terßÚnate if Lessee commences' additionat drilling or re-working operations
within ninety (90) days from date of cessation of production or from date of completion of dry 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 in force so long as oil or gas is produced from the leased preßÚses 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
portion of said land and 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 preßÚses the said Lessee covenants and agrees:
Ist. 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 preßÚses. .
2nd. To pay Lessor one-eighth (l/8) 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 preßÚses, and if used in the man~facture of gasolme a royalty .of one-~ighth (1/8), payable lnon~ly at the prevailing market rate for gas. .
3rd. To pay Lessor for gas produced from any oil well and used off the prenuses or m the manufacture of gasoline or any other product a royalty of one-eighth
(118) 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 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 such sum shall render Lessee liable for the amount due but it shall not operate to terßÚnate 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 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 shall be drilled nearer than 200 feet to the house or barn now on said preßÚses without the written consent of Lessor.
9. Lessee shall fay for damages caused by Lessee's operations to growing crops on said land.
10. Lessee sha1 have the right at any time to remove all machinery and fixtures placed on said preßÚses, 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 information
necessary to establish 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 dißÚnish 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 oßÚssion 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 the leasehold estate and the ßÚneral estate covered by
this lease with other land, lease or leases in the inunediate 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 sißÚlar 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-producin¡¡: formations. The forminç or reforßÚng of any
unit shall be accomplished by Lessee executing and fùing of record a declaration of such unitization or reformation, which declaration shall descnbe the unit. Any unll
may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drillinç 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,
drilling or reworking operations or a well shut in for want of a market under this lease. In lieu of the royalties elsewhere herein specified, including shut-in gas
royalties, Lessor shall 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 proportion of the unit production that the total number of surface acres covered by this lease and included in the unit bears to the total number of surface acres in
such 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 by entering into a cooperative or unit 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 terms, conditions and
provisions of this lease shall be deemed modified to conform to the terms, conditions. and provisIOns of such afproved cooperative or unit plan of development or
operation and, particularly, all drilling and development requirements of this lease, express or implied, shal be satisfied by compliance with the drilling and
development requirements of such plan 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 any part thereof, shall hereafter be operated under any 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 hereunder to Lessor, be regarded as havmg been produced from the particular tract of land- to which it is allocated and 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 and approved by any governmental agency by executing the same upon request of Lessee.
13. All express or unplied covenants of this lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and thiS lease shall not
be terßÚnated, 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 hereby warrants and agrees to defend the title to the lands herein described, and agrees that the Lessee shall have the right at any time to redeem for
Lessor, by payment, any mortgages, taxes or other liens on the above described lands, in the event of default of payment by Lessor and be subrogated to the rights of
the holder thereof, and the undersi~ned Lessors, for themselves and their heirs, successors and assigns, hereby surrender and release all right of dower and homestead
in the premises described herein, InSofar as said right of dower and homestead may in any way affect the pUT,Poses for which this lease is made, as recited herein.
Lessor agrees to execute such further assurances as may be requisite for the full and complete enjoyment of the TIghts herein granted.
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C00390
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15. Should anyone or more of the parties herefuabove named as Lessor fail to execute this lease, it shall nevertheless be binding upon all such parties who do
execute it as .Lessor. The word "Lessor, as used in this leaSe, shall mean anyone or more or all of the parties who execute this lease as Lessor. All the provisions of
this lease shall be binding on the heirs, successors and assi~ of Lessor and .Lessee.
16. Any~ to the contrary herein notwiths~, if Lessor owns a greater interest in the lands described than is PUIported to be leased hereby or hereafter
acquires any additional interest or tide in the lands descrIbed, then this lease shall cover such greater or additional after-acquired interest or tide, and .Lessor agrees to
j¡ive .Lessee written notice of any such acquisition as soon as the same is made, in which event the royalties payable to .Lessor shall be increased proportionately.
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
STATE OF
trL
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J.
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COUNTY OF ~ )
BEFORE ME, the undersigned, 11 Notary Public, in and for said County mld State, on this ~ day of ~~006,
INDIVIDUAL ACKNOWLEDGMENT
personally appeared Jack A. Smith, a sÍIij!;le person to me known to be the identical person described in mld who
executed the within.and foregoing instrument of writing .and .acknowledged to me that ~ duly executed the same as his free
.and voluntary act.and deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF, I have hereunto set my hand .and affIxed my notarial seal the day mld year last above written.
A~i"d:¿£
Notary Public
Address: &. a. ~ .~.:L '.ì ~~I 4 L
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My Commission
y ueLlc
STATE OF ARIZONA
Navajo County
BARBARA BIGLER
My Commission Expires 02/24/09
STATE OF
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) 5S.
INDIVIDUAL ACKNOWLEDGMENT
COUNTI' OF
)
BEFORE ME, the undersigned, a Notary Public, in.and for said County .and State, on this
day of
,2006,
personally appeared , to me known to be the identical person described in mld who executed the
within .and foregoing instrument of writing .and acknowledged to me that duly executed the same as free mld
voluntåry .act.and deed for the uses.and purposes. therein set forth.
IN WITNESS WHEREOF, I have hereunto set my hand .and .affixed my .notarial seal the day mld year last 11bove written.
My Commission Expires:
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Notary Public
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