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HomeMy WebLinkAbout918120 .....,': "" 1It-.... 000092 ) PRODUCERS 88-PAID UP Rev. 5-60, No.-2 - 8pt.-Amended RECEIVED 5/8/2006 at 10:59 AM RECEIVING # 918120 BOOK: 619 PAGE: 92 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY OIL AND GAS LEASE AGREEMENT, Made and entered into the 21 day of Aoril ,20~, by and between Walter C. Miller. married and dealing in his sole and separate property Whose post office address is 1301 Doncaster Street. Irving. Texas 75062, 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, demised. leased and let, and by these presents does grant, demise, lease and let exclusively unto the said Lessee. the land hereinaft~r 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: Township 21 North - Range 115 West . Section 34: That part of the NE/4SW/4 and that part of the EI2 which lies and is situated north of the Oregon Short Line Railroad, also known as the Union Pacific Railroad. right of way. Section 26: SE/4 -....'\ Lincoln County. Wyoming and containing 402.00 acres, more or less. 1. It is agreed that this lease shall remain in force for a term of one (1) year 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 of a subsequent well. If after discovery of oil or gas on said land or on acrea¡¡e 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 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 thè premises the said Lessee covenants and a¡¡rees: 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 (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 (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 (l/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 ènsuing 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 ro pay or tender, or¡roperlY payor tender, any such sum shall render Lessee liable for the amount due but it shall not operate to terminate this lease. 5. If sai 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 Oldy 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 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 Oldy 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 ]easehold owner. 12. Lessee. at its option, is hereby given the right and power at any time and from time to time as a recurrin¡¡ 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 ullltize the leasehold estate and the mineral estate covered b,>' 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 ¡¡as. may be reformed to exclude such non-producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filmg 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. includmg shut-in gas royalties, Lessor shall receive on production from the urut 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 urut bears to the total number of surface acres in such urut. 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 umt 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 urut 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 anrl 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 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 having 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 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 Regu]ation. 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 purposes 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 rights herein granted. IS. 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 H:ì!;i:~f::~:i:;:::~; IDt~!:§:!~.~~¡:.:.;, ! - !:~p,m;!l~¡ '¡~~!t"&ig~·:tN·t ¡~t;~111~51~~1 , 091.81.20 000093 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. 16. Anything to the contrary herein notwithstanding. 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 described. 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. SEE A IT ACHED ADDENDUM TO OIL AND GAS LEASE IN WITNESS WHEREOF, this instrument is executed as of the date first above writle U/;qf/ø- C, WaIter C. Miller vn'JY , STATE OF ~~ ~ ) ) ss. ) INDIVIDUAL ACKNOWLEDGMENT COUNTY OF BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this Æ-fh day of ~--I 2006, personally appeared Walter C. Miller. a married man 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 he duly executed the same as he 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:rf.~~;~-:;~~ ~ {) ~ l {!/~\~ ~,_. .J\IoI~:;"¡;'¡¡-~~-----~ary Public ): \. ~ ¡*: C~¡¡ h'""'XAS -1_ . -.-{ // ~{ \~~>......./;¡'/ (" - i);.~~t~;~.~J:,:.. 11/1 §kJ~R(]N J. HA.RRIS Ad\' ess' Y C>;:; ""~ Of '\ .... : ~/.1i\ 'tI :t. 0 ry Publlo \lr. "....1.· . i ' \ \ ---- ~¡ \._ -) --sf: OF TEXAS { .. ",.,. .'.-. . . 1 ~...."~.,, iit \\\\\\: {~~~~."...~~.-;-'-----' ~. í'~6.;L- STATE OF OKLAHOMA ) ) §. COUNTY OF TULSA ) .. ntf BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this d day of "1Y\ ~ , 2006, personally appeared Robert M. Zinke, to me known to be the identical person who subscribed the name of Zenergy, Inc. to the foregoing instrument as its President and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such Corporation, for the uses and purposes therein set forth. GIVEN under my hand and seal the day and year last above written. My Commission Expires: . JESSICA HAYS ~otaly Pu bile State ofOldahoma TULSA COUNTY Commission # 0ð002271 Explre8: March ... 2008 . ~~-<l' ~ By: . Notary Public / 091.8120 000094 Addendum to Oil and Gas Lease DESCRIPTION OF LANDS: Township 21 North - Range 115 West Section 34: That part ofthe NE/4SW/4 and that part of the E/2 which lies and is situated north of the Oregon Short Line Railroad, also known as the Union Pacific Railroad, right of way. Section 26: SE/4 Lincoln County, Wyoming LESSOR: Walter C. Miller, a married man LESSEE: Zenergy, Inc. DATE OF LEASE: April 21, 2006 REGARDLESS OF LANGUAGE TO THE CONTRARY CONTAINED ON THE OIL AND GAS LEASE THE FOLLOWING SHALL CONTROL: 1. ROYALTY. In the lease, all 1/8 shall now read 7/32. 2. PRIMARY TERM. The primary tenn of this lease shall be 1 year from the date oflease. 3. EXTENSION OF TERM. Lessee has the right and option to extend any part of this lease for an additional one (1) year beyond 4-21-2007, by remitting to the Lessor on or before 4- 21-2007, a price per net mineral acre own~d by Lessor equal to that which was originally paid per net mineral acre for this lease in and under such lands as Lessee elects to exercise under its option. The Lessee has the right and option to exercise said one (1) year extension up to four (4) total times provided the Lessee remits said payment by the new expiration date. 4. PUGH CLAUSE. A producing oil or gas well on the land leased herein will perpetuate the lease beyond primary tenn only as to such lands as are actually contained within the pooling unitization, or spacing unit, as the case may be, for the producing well; such lands leased not included in such unit shall remain subject to the tenn and conditions of this lease, but shall be unaffected by the pooling, unitization, or spacing of and other part of parts of the lease. It is the intent of this paragraph that lands that are not producing oil or gas shall not be held by production after primary tenn except as allowed in this paragraph. However, said lease shall continue beyond primary tenn if Lessee is engaged in drilling or reworking operations in accord with the provisions ofthis lease; all of the lands under this lease shall be held by such drilling or reworking operations so long as not more than 180 days shall elapse from the completion or abandonment of one well to the commencement of the drilling of or reworking of another well. Upon failure of Lessee to maintain said continuous drilling program, this lease shall automatically tenninate as to such lands not contained within the pooling, unitization, or spacing unit and sharing in actual production. 5. RIG REQUIREMENTS. Wherever the lease requires the Lessee to commence additional drilling or reworking operations, it is also required that such drilling or reworking operations be diligently prosecuted with a rig of sufficient size and type to complete the drilling or reworking contemplated. 6. SHUT-IN. From the date of completion, Lessee shall have 240 days to begin selling gas, if a gas well, or oil, if an oil well. If no sales occur within the time frame, then the Lessee shall pay $3,000.00 pe~ month. The amount shall be prorated if the well started prodÚcing during the same month. 7. WELL INFORMATION. Lessee will provide Lessor well infonnation conceming drilling, testing and completion reports, logs, and samples. All infonnation shall be sent to attention Mr. Walter C. Miller, 1301 Doncaster Street, Irving, Texas 75062. Daily drilling reports shall be mailed on a weekly basis or Lessor may provide an email address where the reports will be emailed daily. 8. ACCESS TO LOCATION. Lessor shall have the right to access the location of any well operated by Lessee on described property provided that the Lessor contacts Lessee at least 72 hours in advance provided the Lessor has all necessary requirements to be on location. Lessor may contact the land department at (918) 488-6464. While Lessor is on location, Lessor indemnifies and waives all liability of the Lessee for Lessor being on location and any events that may cause hann to Lessor while being on the location. 9. CERTIFICATION. Lessee agrees to help provide any infonnation needed to help Lessor become H2S Certified to be on location. Lessor agrees to pay any and all expenses related to acquiring the certification.