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HomeMy WebLinkAbout917362 n 2I~f~~m~t':~T RECEIVED 4/1 Ôi2Ö06 at 1 :34 PM RECEIVING # 917362 BOOK: 616 PAGE: 608 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, Vv :m~lli¡ili~~m: PRODUCERS 88-PAID UP Rev. 5-60, No.2 (CRG) OIL AND GAS LEASE This Oil and Gas Lease ("Lease") is made this ~day of April, 2005, by and between Stephanie Anne Wa!!Í1er. dealin!! in her sole and separate property, whose address is 5825 Urban Street. Arvada CO 80004 ("Lessor", whether one or more) and Laramide Exploration, LLC, a Colorado limited liability company. whose address is 21390 East Pro!!ress Place. Centennial, CO 80012 ,("Lessee"). WITNESSETH, For and Consideration of TEN DOLLARS, the covenants and agreements contained herein, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Lessor does hereby grant, demlse,lease and let exclusively nnto said Lessee, with the exclusive rights for the purposes of mining, exploring by geophysical and other methods and operating for and producing therefrom oil and all gas of whatsoever nature or kind (including coalbed gas), and laying pipelines, telephone and telegraph lines, building tanks, plants, power stations, roadways and structures thereon to produce, save and take care of said products (including dewatering of coalbed gas wells), and the exclusive surface or subsurface rights and privileges related In any manner to any and all such operations, and any and all other rights and privileges necessary, Incident to, or convenient for the operation alone or conjointly with neighboring land for such purposes, all that certain tract or tracts of land situated In Lincoln County, Wvomlnl! . described to wit: TOWNSHIP 19 NORTH. RANGE 118 WEST.6'b P.M. Section 2S: N/2S!2 and containing 160.00 acres, more or less (including any Interests therein which Lessor may hereinafter acquire by reversion, prescription or otherwise)(the "Premises"). In addition to the above described land, this lease and the term "Premises" also covers accretions and any small strips or parcels ofland now or hereafter owned by Lessor which are contiguous'or adjacent to the above-mentioned land, and in consideration of the aforementioned cash bonus, Lessor agrees to execute at Lessee's request any additional or supplemental instruments for a more complete or accurate description of the land so covered. For the purpose of determining the amount of any rentals and shut-In royalties hereunder, the number of gross acres above specified shall be deemed correct, whether 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 effective date hereof ("Primary Term") and as long thereafter as oil or gas of whatsoever nature or kind Is produced from the Premises or on acreage pooled or unitized therewith, or operations are continued as hereinafter provided. If, at the expiration of the Primary Term, oil or gas is not being produced from the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling, reworking or dewatering operations thereon, then this Lease shall continue In force so long as such operations are being continuously prosecuted. Operations shall be considered to be continuously prosecuted if not more than ninety (90) days shall elapse between the completion or abandonment of one well arid the beginning of operations for the drilling of a subsequent well. If after discovery of oil or gas on the Premises or on acreage pooled or unitized therewith, the production thereof should cease from any cause after the primary term, this Lease shall not terminate If Lessee commences additional drilling, reworking or dewatering operations within ninety (90) days from date of cessation of production or from date of completion of a 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, this Lease shall continue In force so long as oil or gas Is produced from the Prenûses or on acreage pooled or unitized therewith. 2. This is a PAID-UP LEASE. In consideration of the payment made herewith, 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 the ,Premises 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 obligations thereafter accruing as to the acreage surrendered. 3. Lessee covenants and agrees to pay royalty to Lessor as follows: (a) On oil, to deliver to the credit of Lessor, free of cost In the pipeline to which Lessee may conneCt wells on the Premises, the equal one- eighth (l/8'b) part of all oil produced and saved from the Premises. "f' (b) On gas of whatsoever nature or kind, including coalbed gas and other gases, liquid hydrocarbons and their respective constituent elements, casinghead gas or other gaseous substances, produced from the Premises ("Gas") Lessee shall pay, as royalty, one-eighth (l/SIb) of the net proceeds realized by Lessee from the sale at the well. I (c) On product produced from the Premises Lessee shall pay, as royalty, one-eighth (l/S'b) ofthe net proceeds realized by Lessee fròm the sale at the well. '1 4. Where Gas from a well capable of producing Gas (or from a well in which dewatering operations have commenced), 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 above One Dollar ($1.00) per year per net minerai acre, such payment or. tepder to be made on or before the anniversary date of this Lease next ensuing after the expiration of ninety (90) days from the date such well is shut In or dew'aterlng'óperations are commenced and thereafter on or before the anniversary date of this Lease during the period such well is shut In or dewatering operations are being conducted. 5. If Lessor owns a lesser interest in the Premises than the entire and undivided fee simple estate therein, then the royalties (including any shut-in gas royalty) herein provided for shall be paid Lessor only In the proportion·which.Lessor~s ínter:,,-st bears to ,t,he who,le 1ß,d. undivided fee. 6. Lessee shall have the right to use, free of cost, Gas, oil and water produced òn the Premíses for Lesseè's operations thereon, except water from the wells of Lessor. 7. When requested by Lessor, Lessee shall bury Lessee's pipeline below plow depth. S. No well shall be drilIc:d nearer than 200 feet to the house or barn now on the Premises without written consent of Lessor. 9. Lessee shall pay for damages caused by Lessee's operations to growing crops on the Premises. 10. Lc:ssee shall have the right at any time to remove all machinery and fixtures (including casing) Lessee has placed on the Premises. 11. The r}ght.offheLessor and Lessee hereunder may be assigned in whole or part. No change in ownership of Lessor's interest (by assignment or otherwise) shall be blndlo"g on Lessee until Lessee has been furnished with notice, consisting of certified copies of all recorded instruments or documents and other Infot:mation necessary to establish a comp.lete 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 the Premises 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 Premises and as to anyone or more of the formations thereunder, to pool or unitize the leasehold estate ¡¡rid the nûneral 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 producing oil or gas, may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which_d~cIaratjon.shall describe the unit. Any unit may Include land upon which a well has theretofore been completed or upon which operations'ror drilling have there!ofõre been commenced. Production, drilling, reworldng or dewatering operations or a well shut In for want of II macket anywhere on a unit which Includes all or a part of this Lease shall be treated as If It were production, drilling, reworking or dewatering 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 royalties on production from such \!I}it .9/1ly 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 tbe total number of surface acres In such Unit. In addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the Premises 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 approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this Lease, express or implied, shall 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 agreement. In the event that the Premises 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 having been produced from the particular tract of land to which it is allocated and not to any other tract of land; and royarty 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 unit 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 implied covenants of this Lease shall be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this Lease shall not be terminated, in whole or In part, nor Lessee held liable in daß!ages, 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. Any delay or Ihterruption caused by storm, flood, act of God or other event of force majeure shall not be counted against Lessee. If, due to the above causes or any cause whatsoever beyohd the control of Lessee, Lessee Is prevented from conducting \).J "10 VI z.ol., - 05" PRODUCERS 88-PAID UP Rev. 5-60, No.2 (COG) 091.17362 . 000609 .... operations hereunder, such time shall not be counted against Lessee, and this Lease shall be extended for a period of time equal to the time Lessee was so prevented, anything in this Lease to the contrary notwithstanding. 14. Lessor hereby agrees that Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the PreßÚses, in the event of default of payment by Lessor, and be subrogated to the rights of the holder thereof, and the undersigned Lessors, for themselves and their heirs, successors and assigns, hereby surrender and release all right of dower and homestead in the PreßÚses, insofar as said right of dower and homestead may in any way affect the purposes for which this Lease is made, as recited herein. 15. Should anyone or more of the parties named as Lessor herein 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 assigns of Lessor and Lessee. IN WITNESS WHEREOF, this instrument is executed as of the date first above written. ~.~ Stephanie Ann -agner..----. STATE OF ACKNOWLEDGMENT MICHAEL A. GARCIA NOTARY PUBLIC STATE OF COLORADO MY COM~ EXPIRES 1~1£(m §. INDIVIDUAL COUNTY OF (For use In all states) o tWs )" H day of ~ .. 2005, before me. the undersigned Notal)' Public in and for said county and state, personally ~ppeared Steohanle Anne Wal!ener. deallnl! In her sole and se~araie ~rckertv. known to me to be the person(s) whose name(s) is subscribed to the foregoing instrument, and acknowledged that the same was executed and delivered as their tTee and voluntal)' act for the purposes therein set forth. In witness whereof I hereunto set y hand and official al as of the date hereinabove stated. My Conunission Expires /],.-/".. ?/Nr [-ð'OD £- SEAL ¡~:iirr::!*:~~:::~:) f ~t ~:ili:.j)l \