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HomeMy WebLinkAbout918077 ?;:; ;:;~\:':.'~_': ~,;~i '~i~:::m~~~:~:::~;7 :! ~:i(n¡t~m;~¡:~;'~:¡9 v u RECEIVED 5/5/2006 at1 0:41 AM RECEIVING # 918077 BOOK: 618 PAGE: 866 JEANNE; WAGNER LINCOLN COUNTY CLERK, KEMMERER. WY PRODUCERS 88-PAID UP Rev. 5-60, No.-2 - 8pt.-Amended OIL AND GAS LEASE AGREEMENT, Made and entered into the 20'" day of April , 20 ~, by and between Florence R. Shepard, Trustee of the Florence R. Shepard Revocable Trust as amended and restated on February 1, 2002 Whose post office address is 171 Third Ave.,. #205~ Salt Lake City, UT 84103 , hereinaft~r 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, 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 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 land situated in the County of Lincoln, State of Wyoming, described as follows. to- wit: ' 7) is Township 21 North, Rang;e 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 less. I. It is agreed that thIS lease shall remain in force for a term of five (5) years from this date and as long thereafter as oil or gas of whatsoever nature or kind is produced from said leased premises or on acreage pooled therewith, or drilling operations 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 premises or on acreage pooled therewith but Lessee is then 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 o~ a~ubsequ~~~ w,ell. If aft~r_ (.Ii~c~very .of oil or gas on said la~~ or on .a~reage pooled !herewith,. the production thereof should cease !Tom any cause after',the ,p.rj~ry, lêrm, tljlS, le~e S~¡¡~l, npq,e, r~ate If Lçssee commences a.ddltlO, nal dnlllng or re-w,orkmg 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 ~e expiration of the primar~ tfrm9.,'~~· I~e, thi~ .Iease shall continue 10 force so long as oil or gas is produced from the leased premises or on acreage ooled therewIth, " .) '" ," " ' 2, ~is is a PAII?-UP LEASE. ~ consid.eratipn of.I!~o. n cash payment, Le~sor ~grees: tJ:1at Lesse~ shall not be obli¡¡ated, except as otherwi~e provided herein, to commence or contmue any operations dunng the pr~term: Lessee may ,a~a,[ y, u~e, Qr times dunng or after the pnmary term surrender thiS lease as to all or any portion of said land and as to any strata or stratum byífeliv~ring tó,Lèssor~orbfY11ingfõ;Precord a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. , . .. . . i: ¡ ~.: h Ii' 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 (Jl8) part of all oil produced and saved from the leased premises, 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 fu the manufacture of gasoline a roYal, ty 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 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 eI1!ìuing 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 fanure 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 entir, e 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 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. 11. The rights of Lessor and Lessee bereunder may be assigned 10 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 titIe 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 enlarge the obligations or dimiOlSh 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 ant one 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 unmediate 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 sucb 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, driJIin,& 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 UOlt. In addition to the foregoing, Lessee sball 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 thereund~r with other I~nds in .the saI?e ~eneral area by enter.ing into a cooperat.ive or unit plan of development or operation approved by any gove~~ental autho~l~y and, fr?m tune to tune, WIth like approval. to modIfy, change or ter~ate any such.1~lan or agreement and, in such event, the terms, condlUons and provISI~ns \If thIS le~e shaJJ be de~l1}ed modIfied to conform tf? the terms, cf?ndltlons, and provI~lons. of such approv~d cooperative<!r unit plan of dey~lopment or operatIOn and.. particularly, all dnlllOg and developmen! requITements of thIS. lease, expr~ss or .Implled,. shal! be satisfied by compliance with the ùnllln~ and develop~ent requITements of such plan or agreement, and thIS lease shall not terrrunate or eX!?lre durlO~ the life of such plan or agreement. In the event that saId above descnbed lands or any part thereof, shall hereafter be operated under any such cooperative or UOlt plan of development or operation whereby the production therefr~m is allocate? to differe.nt portions of the land covered by said pl!lli, then the production allocat~ to any particular tract of I~nd shall, for the purpose of computlOg the royalties to be paid hereunder to Lessor, be regarded as havlOg been produced from the particular tract of land to which It is allocated and not to any oth~r tract of land; and the rO'yalty pa>:ments to be made, hereunder 10 .Lessor shall be based upon production only as so allocated, Lessor shall formally express Lessor s consent to any cooperative or UOlt plan of development or operation adopted by Lessee and approved by any governmental agency by executing the same upon request of Lessee, 13,. All ex!?ress or imp!ied covenants of this lea~e sh~ll be subject to all. Federal and State La~s, I?xecutiv~ Ord~rs, Rules or Regulations, and this lease shall not be tenrunated, 10 wbole or 10 part, nor, Lessee held liable 10 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. ' :1',., ' '~; ; , '" ";,' " ",;.. ,.", !' ,.', ,. ~.. . -: ,¡ '":" 091..8077 nnr867 \.; \J \.: 14. Lessor herehy 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, hy 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 prenùses described herein, insofar as said right of dower and homestead may in any way affect the pUf{>oses 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, 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~ns of Lessor and Lessee. 16. Anythin~ to the contrary herein notwithstandin~, 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 WHEREOF, this instrument is executed as of the date first above written, ...:...- '-_.-.~-~--'-.-'-"-~':::"'~'=-' -'Florence n.. Shepard Revocable Trust as amended and restated on February 1, 2002 By STATE OF UT¡::..\~, COUNTY 06cÀL:Î tA.¿e ), ) ss. ) ,.' " ": ' " :'- ,- ;; .-' ThrnnnDUALACKNOWLEDGMENT BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this 2..l-l day of A/?2.... C. 2005, personally appeared Florence R. Shepard, Trustee of the Florence R. Shepard Revocable Trust as amended and restated on February 1 , 2002 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 her free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHERËOF, il1ave hereunto set my llimd anctaff1xéèÏ my notarial seal the day andyear last above written.- My Commission Expires: ~ dress: 3'-16O..s h{ 0rltA -1 ~ Î)J.L. STATE OF COUNTY OF ~ ....., ) ) ss. _ ThrnnnDUALACKNOWLEDGMENT ) 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 hereunto set my hand and affixed my notarial seal the day and year last above written, My Commission Expires:- ~i ','.t Notary Public Address: When recorde~~m~illm¡m~lli1o Antelope Land Services, LLC, P. O. ::¡i¡:¡!¡¡j~m;, Kimball, Nebraska 69145.