HomeMy WebLinkAbout919657
IV'
000400
PRODUCERS 88-PAID UP
Rev. 5-60, No.-2 - 8pt.-Amended
RECEIVED 6/26/2006 at 11 :59 AM
RECEIVING # 919657
BOOK: 624 PAGE: 400
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMER~R_, WY
OIL AND GAS LEASE
AGREEMENT, Made and entered into the
14'"
day of June
, 20 ~,by and between William Ronald Davison and Kathleen Ann
Davison, as husband and wife and tenants in the entirety
Whose post office address is Box 602, Kemmerer, WY 83101
, 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 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:
Township 21 North, Range 115 West, 6th P. M.
Section 34: W/2 SW/4 and that part of the NE/4 SW/41ying
south of the Union Pa,cific Railroad right-of-way
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and containing 95.00' , acres, more or less; .. . . . .... .' ... . ...
1. It is agree~ that thIS leas~ shall remain in force for a term. of five (~. years fro~this date !,~d as.long th~reafter as o.iI or gas of whatso~ve~ nature or ~d is
produced from saId leased prermses or on acreage pooled therewIth, or drillmg operatIOns ar.e contmuedas heremafter provIded. If, at the explral10n of the prunary
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 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 producl1on or from date of completion of dr:t 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 m 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 obli~ated, 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 pnmary 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 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 (118) part of all oil
produced and saved from the leased premises.
2nd. To pay Lessor one-eighth (l/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 pal 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) 0 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 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 fay 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.
1 I. 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 bindin~ on Lessee. No present or future division of Lessor's ownership as to different portions or parcels of said land shall operate to
enlar¡¡e the. obligations O. r diminIsh the rights C?f Lessee, and a.lI. Less~e. '.s operations m. ay bec. ond. ucted .W.itho.ut.. r.egard to any S.UCh division. If all or any part of this
lease IS assIgned, no leasehold owner shall be hable for any act or ormsslon of any other leasehold owner.. ,. .,.... , . "
12. Lessee, at its optlon, 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 an:t 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 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 producmg oil or gas, may be reformed to exclude such non-producing formations. The forming or reforming of any
Jlnit shall be accomplished by Lessee executing and ftling 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, L~ssor shall re.ceive on production from the unit so pooled royalties only on th~ portion of.such pro~uction ~llocated to this lease; such allocation shall be
that proportton of the umt productIon that the total number of surface acres covered by thIS lease and mcluded m the umt bears to the total number of surface acres in
such umt. 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
dey~lopment or operation and... particularly, all drilling and development requirements of this. lease, expr~ss or impliedf. shall ~e satisfIed by compliance with the
udrillmg-anä-developmentTeqUlrements of such' plan or agreement, and thu,lease shall not terrmnate-oT eXptredurin:j¡the Ife of su<:h plan or agreement. In the event
that said above described lands or any part thereof, shall hereafter be operated under any such cooperative or umt 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 alloc~ted and
not to any oth~r tract of land; and the ro,Yalty 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 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. ,
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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 hoider 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 pUf{>oses for ~hich 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 herem 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 assiJl.lls of Lessor and Lessee.
16. Anything .to the contrary ~ereÍ:D notwithstandin~, If Lessor I?wns a greater interest in the lands de~c.ribed than is p~rpo~ted to be l~ased hereby or hereafter
. acquires any a~dltional:Ulte~est oTtitle m;.th~.l~ds descnbed,then,tIllS}eaSf: sh~ co~er such greater or ~ddltlonal after-acquired mter~st or title, and I,t:ssor agrees to
give Lessee wntten notlce õf any such acqUlSltlon as soon as the same IS made, m WhICh event the royaltles payable to Lessor shall be mcreased proportlonately.
IN WITNESS WHEREOF, this instrument is executed as of the date fust above written.
i!iIli-_~7J~~Z_'-ø-i=R~~;C))ci;;~~hC'~'-' .
, Kathleen Ann Davison Wi1ri~ Ronald Divison
STATE OF Wyoming
)
) ss.
)
ThrnnnDUALACKNOW1EDGMENT
COUNTY OF Lincoln
BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this 16th day of June
2006, personally appe~red William Ronald Davison and Kathleen Ann Davison, as husband and wife and tenants in the entirety
to me known to be the identical persons described in and who executed the within and foregoing instrument of writing
and acknowledged to me th~:, they duly executed the same as their 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.
CC~¡ÑjQt: ROB h I Co
ission Expires
COUNTY OF
. .'__,' '~_"..-,,---,., ,....,_-c. ;,_'-'0-".:"-. ___'."._.__"_'''''-''' -....,.
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Notary Public
Address: 925 Sage Avenue, Kemmerer
WY83101
My Co
t<l.
(i!
o
(~
Li~'ICOLN
¡.:y COMMISSION tXÞIr\liB
STATE OF
)
) ss.
ThrnnnDUALACKNOW1EDGMæNT
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 :
'When recorded return to Antelope'Land S~rvlces, LLC, P. b. Box 577, ,Kimball, Nebraska 69145.
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