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HomeMy WebLinkAbout917456 RECEIVED .v13/2006 at 9:39 AM RECEIVING # 917456 BOOK: 616 PAGE: 802 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY CQ0802 PRODUCERS 88-PAID UP Rev. 5-60, No.-2 - 8pt.-Arnended OIL AND GAS LEASE AGREEMENT, Made and entered into the 30th day of March ,20 -º2-, by and between Dixie F. Hansen, also known as Dixie June Hansen. a married woman dealing in her sole and separate property Whose post office address is 565 Wyandotte Ave, Sandy, UT 84070-3518 , 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+) DÓLLARS éash in hand paid, the receipt of which is herèby acknowledged, and the covenants and agreements hereinafter contained, has granted, demised, leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee, the land hereinafter desCribed, with the exc1us!ve rig~t f~r the purpose of mining, explorin~ hy ~eop~ysical and oth~r methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kind, With nghts 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 Wyoming, described as follows, to- wit: Township 21 North. Range 115 West, 6th P. M. Section 36: All (also described as Section 36: Lots 37,44 and 46), less and except the railroad right of way , "-"~ and containing 627.64 acres, more or I~ss: . . . . I. It is agreed that thIS lease shall remam III force for a term of five (5) years from thIs date and as long thereafter as Ollar gas of whatsoever nature or kind IS produced from said leased premises or on acreage pooled therewith. ' or drilling operations are continued as hereinafter P.roVided. I. f, at the expiration of the primary term of this lease, oil or gas is not being produced on the leased premises or on acreage pooled therewith but Lessee is the } engaged in drilling or re-working operations thereon, then this lease shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and 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 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 pooled therewith, 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 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 premises or on acreage pooled therewith. 2. This is a PAIq..-J.œ.LE4SE.,I;nco~ider¡ltion. of.-the do~ncash,p"Yment, Lessor ~grees tJ;1at Lesse~ shall not be oblit!ated, except as otherwi~e provided herein, to commence or cont ue. any-. ) eratílt{¡fI.during tlie''þ'riirlar , 'tentl"l'..es ee may at any tIme or times dunng or after the pnmar term surrender thIS lease as to all or any P?rtion of said la fal\d as,~any stra~ià.~h¡ttatl.ìm. .bi,~eIiVStin. g to Lessor or by filing for recorda release or releases, an:lbe relieved of all obligation thereafter accruing as to !he ac! ",ge"¡,sun:en~ered., ?I'.~ ,'..' ':,~::: ';' . :.....",. 3. In conslderatt 'of the prl'lrlíYès The saId Lésseecovenants antfbirees: 1st. To delive t ':the ,credit oI.Lessot{fr'efof.cost;in'!þe-'pW.uine to which Lessee may connect wells on said land, the equal one-eighth (1/8) part of all oil produced and sa o'irftlte-Te\TS"êìtþl'~êr:--:---·--~ 2nd. To pay Lessor one-eighth (1/8) 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 premises, and if used in the manufacture of gasoline a royalty of one-eIghth (1/8), 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 mO\lth of the well, payable monthly at the prevailing market rate. 4. Where gas from a well capable of producins gas is not sold or used, Lessee may payor tender as royalty to the royalty owners Onc 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 ensuing 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 in. 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 onJy 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 premises without the written consent of Lessor. 9. Lessee shall pay for damages caused by Lessee's operations to growing crops on said land. 10. Lessee shall have the right at any time to remove all machinery and fIXtures placed on said premises, including the right to draw and remove casing. II. The rights of Lessor and Lessee hereunder may be assigned m 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 bindin¡¡ on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to enJarge the obligations or dimirush 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 the leasehold estate and the mineral estate covered by this lease with other land, lease or leases in the 1ß1Inediate 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-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 declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling 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 onJy 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 UnIt. 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 ~eneral area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with hke 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 drillin~ and develop~ent. requirements of such plan or ag~eemen~, and this lease shall not terminate or eXp'ire durin¡¡ the life. of such plan or agreem~nt. In the event that smd above describeu lands or -any pan thereof, shall herealter be operaled under any such cooperative or UnIt plan ot 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 n0119 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 cooperatlve 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 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. ' t¡1;';·i· ·.·.·~.~,¡I.·il I':·'o",o,.".""..¡ ~j:::::::::~~:8!:~;. .... 0917456 C00803 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 undersigned 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 pur{loses 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 nghts herein granted. 15. Should anyone or more of the parties hereinabove named as Lessor fail to execute this lease, 11 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¡¡ns of Lessor and Lessee. . ' 16. Anythin~ to the contrary herein notwithstandinl¡, If Lessor owns a greater interest in the lands described than is purported to be leased hereby or hereafter acquires any addItional interest or title in the lands descnbed, then this lease shall cover such greater or additional after-acquired interest 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 increased proportionately. IN WITNESS WlJEBEOF.! this ~trument is exeSHted as of the da~e first above written. Dixie F ansen, also known as Dixie June Hansen, a married woman dealing in her sole and separate property ~~,~~ STATE OF I'~' I·" ..,. _J~Jft-~ ) )ss. ) INDIVIDUAL ACKNOWLEDGMENT, COUNTY OF BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this 1; day of ~, 2006, personally appeared Dixie F. Hansen, also known as Dixie June Hansen, a married woman dealing in her sole and separate property 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 she duly executed the same as her 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 notar' eal the day and year last above written. My Commission Expires: -oc( Address : @ ÄWNYAL.REDMONO , NOTARY pUBlIC -ITATE OF UTAH IJ 9311 S. HIGHLAND DR. " SANDY UT 84093 .: m 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 , 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 hereunto set my hand and affixed my notarial seal the day and year last above written. My Commission Expires: Notary Public Address : I~ ". When recorde¿r.;:~j~:\t~;;:~!¡;::::~;) Antelope Land Services, LLC, P O. E~:~¡~~~¡~;¡¡¡;:,' Kimball Nebraska 69145 .. ·~','·'-;';'i·/:"···.';· '.' . "::.!.i.!..~~'L~-'':''''' .