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RECEIVED 5/11/2006 at 10:37 AM
RECEIVING # 918232
BOOK: 619 PAGE: 549
JEANNE WAGNER
LINCOLN COUNTY CLE¡:RK, KEMMERER, WY
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PRODUCERS 88-PAID UP
Rev. 5-60, No,-2 - 8pt.-Amended
OIL AND GAS LEASE
AGREEMENT, Made and entered into the
20th
day of April
, 20 .QL, by and between Barbara Driskell, individually and as heir to
the Estate of Mabel Barry, Deceased, and Byron C. Driskell, her husband
Wbose post office address is 21032 Fifth Ave S, Des Moines, WA 98198-3629
, hereinafter called Lessor (whether one or more) and
Zenergy, Inc., whose pOSI office address is Onc Warren Place, 6100 S. Yale Avc" 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 ~hich is hereby
acknowledged, and the covenants and agreements hereinaft~r con~ined, has gra,nted: demised, leased and let" a!ld by thes~ presents does want, dellllse, lease and let
exclusively unto the said Lessee, the land hereinafter descnbed, WIth the exclus!ve ng~t for the purpose of lllImng, explorm~ by ~eophyslcal and oth~r methods, and
operating for and producing therefrom oil and all gas of whatsoever n~ture or kmd, WIth nghts of way and easel1!ents for laymg pIpe lines, and erectIon of structures
thereon to produce, save and take care of said products, all that certam tract of land sItuated 10 the County of Lmcoln, State of Wyommg, descnbed 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
, !~
j
and containing 627.64 acres, more or l7ss: . . . ,
I. It is agreed that thIS lease shall remalD m force for a term, of five (?), years fro~ thiS date a?d as long th~reafter as 0,11 or gas of whatsoeve! nature or kmd IS
produced from said leased premises or on acreage pooled therewith, or d~tlling operatIons are contmued as. herelDafter pro,vlded. If, at the ~xplratI.on of the pnmary
term of this lease, oil or gas is not being produc~d on the leased prellllses or on acre~ge pool~d therewith but Lessee IS then engaged m dnlling or re-workmg
operations thereon, then this lease shall contmue m force so long as operatIons are bemg contlDuously prosecuted on the leased prellllses. or on acreage pooled
therewith; and operations shall be considered to be contInuously prosecuted If not more than mnety (90) ~ays shall elaps~ between the completIon or abandorn:nent of
one well and the beginning of operations for the dnllmg ?f a subsequent well. If after dlsc~very of otl or gas on saId lan~ or on ,acreage pooled !herewith" the
production thereof should cease from any cause after the pnmary term, thiS lease shall not terllllnate If L~ssee commences a,ddltlOnal dnlling or re-workmg operatIons
within ninety (90) days from date of cessatio,n of productIon ?r from da~e of completion ~f drr hole. If 011 or gas ~hall be ~Iscovered and produced as a result of such
operations at or after the expiration of the primary term of thiS lease, thiS leas~ shall contmue m force so long as 011 or gas IS produced from the leased prellllses 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 ~erm: Lessee may at any t~e or times during or after the pnmary term, surrender this leas,e as to all or
any portion of said land and as to any strata or stratum by delivering to Lessor or by ftImg for record a release or releases, and be relieved of all obligatIon thereafter
accruing as to the acreage surrendered.
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 wbich 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 (1/8), payable monthly at the prevailing market rate for gas.
3rd. To pav Lessor for gas' produced from any oil well and used off ¡he premises or in the manufacture of gasoline or any other product a royalty of one-
eight¡ (118) oÎthe proceeds, at the mouùl of the well, payaiJh: momhiy a¡ the prevailing market rate.
4. Where gas from a well capable of producing gas is not sold or ùsed', 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 beforè 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 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 ray for damages caused by Lessee's operations to growing crops on said land.
10. Lessee shal 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 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 dimimsh 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
an,y part of the land described herein and a~ to any one ~r mo~e. of the formations h~reunder ~ to pool or unitize the leasehold estate a~d the mineral estate covered by
thiS lease With other land, lease or leases m the unmedtate vlcmlty for the productIOn of 011 and gas, or separately for the production of either, when in Lessee's
ju~gment .it is necessary or, advisable to ~o so, and irrespecti~e of whether authority similar to this exists with resp~ct to such. other land, lease or leases. Likewise,
un!ts prevIOusly form~ to mclude formatlon~ not producmg 011 or gas, may be ~eformed to ex~~ud~ such non-producmg f~rmatlons. ~he forming or reforming of any
un~t shall, be accomphshed by ~essee executing and f1lmg of record a declarauon of such umtlzatlon or, reformation, whIch declaration shall describe the unit. Any
umt may l!1clude land upon whIch a wel! has theretofore been completed or upon ~hlCh, op~rauons for dnlling have theretofore been commenced. Production, drilling
or, reworkmg oper~uons or a, well shut m for wa?t of a market anywhere on a umt whIch mclu~es all or a part ?f this lease shall be treated as if it were production,
dnllin,g or reworking oper~tlons or a we!l shut m for w~nt of a market u~der !Ius lease. In I!eu of the royalties, elsewhere herein specified, including shut-in gas
royalties, Lessor shall receIve on production from the umt so pooled royalties only on the portion of such production allocated to this lease; such allocation shall be
that proportion o~ ~e unit productl~n that the total number of s~rface acr~s, covered by this I~ase and included in the unit bears to the total number of surface acres in
such umt. In additIon to the foregomg, Lessee shall have the nght to umtlze, pool or combme all or any part of the above described lands as to one or more of the
formations thereunder with other I~nds in ,the sa~e ¡¡eneral area by entering into a cooperat.ive or unit plan of development or operation approved by any
gove~nmental autho~l~y and, fr~m time to time, With like approval, to modify, change or ter~nate any such plan or agreement and, in such event, the terms,
conditions and provISIOns of thIS lease shall be de~med modIfied to conform t~ the terms, c~ndltlons, 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 Imphed, shall be satisfied bv compliance with the
ùrillinl\ and ùevelop~ent requiremenlS 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 sal~ above descn~ed lands or an~ part thereof, shall hereafter be operated ~nder any such cooperative or unit plan of development or operation whereby the
production therefr~m IS allocated to dlffere,nt portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for the
purpose of computmg the royalties to be paId hereunder to Lessor, be regarded as !1avmg been produced from the particular tract of land to which it is allocated and
not to any oth~r tract of land; and the royalty pa~ments 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 operauon adopted by Lessee and approved by any governmental agency by executing the
same upon request of Lessee.
13., All eXl?ress or imp!ied covenants of this lea~e sh~1I be subject to all Federal and State Laws, Executive Orders, Rules or Regulations, and this lease shall not
be terllllnated, m whole or m part, nor, Lessee held liable m 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. ,
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09~lS232
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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 dow~r, and homestead may in any w~y affect the purposes for ~hich this lease is made, as recited
herein, Lessor agrees to execute such further assurances as may be reqUlstte for the full and complete enjoyment of the nghts herein granted.
IS. Should anyone or more of the parties he.rein~bove named as Lessor fail to execute this lease, it s~all nevertheless b~ binding upon all such parties, ~ho 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. Anythin~.to th~ contrary ~ere!n notwithstandin~, if Lessor C?wns a greater interest in the lands de~c.ribed than is Pl!rpo~ted to be leased hereby or hereafter
acquires any addltlonal.lnterest or title In th~ ,I~nds descnbed, then thIS. lease shall co~er such greater or ~ddltIonal after-acqUired mter~st or title, and L~ssor 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 mcreased proportIonately.
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
-
~C-~d/
Byro C. Driskell
jß~.d p~
Barbara Driskell, individually and as heir to the Estate of
Mabel Barry. Deceased
STATE OF
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COUNTY OF
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INDIVIDUAL ACKNOWLEDGMENT
BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this t S I day of j/)1 ~
~t.. personally appeared Barbara Driskell, individually and as heir to the Estate of Mabel Barry, Deceased, and Byron C.
Driskell, her husband to me known to be the identical persons described in and who executed the within and
foregoing instrument of writing and acknowledged to me that they
duly executed the same as
their
free and voluntary act
and deed for the uses and purposes therein set forth. \ \', \ \ \ I i 11II1I
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IN WITNESS WHEREOF, I have hereunto,,~t~~:J;1al~C1 )$ð¿¡(f:fi;:ed my notarial seal the day and year last ahove written.
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My Commission Expires: ../ -r.....-'/;;:u ___ ,= ~~~ "_
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STATE OF
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INDIVIDUAL ACKNOWLEDGMENT
COUNTY OF
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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:
Notary Public
Address :
When recorde~:;m¡¡;t,t!!~þ Antelope Land Services, LLC, P. O. i~~::::¡:::!:;i;;i¡ Kimball Nebraska 69145
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