HomeMy WebLinkAbout920502
..
000190
RECEIVED 7/24/2006 at 11 :09 AÏIII
RECEIVING # 920502
BOOK: 627 PAGE: 190
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER, WY
----------- --,~ -- "-.. -. -- -- -
-- ----- -- ..-.- ---
PRODt/CERS SIHAm UP
Rev. 5..00. NO.·2 - 8pt.-Anlcnded
OIL AND GAS LEASE
AG!ŒEMBNT, Made and entered Into Ule
30th
.1 f June
\lay 0
, 20 .QQ._. by and bclwccl\..Arnol(llir....~l at!!1l2ebbic K. LiU'SQ.!ti
b.u~balld and wife.i!.@yid\.lalŒ.Jm.d as tcnªª~Q.y~ntirelle5
._ Whose po$t oCfice address is L~LlIDÇ..W:, WY 3J.1IU
or more) and
Zeuergy. Inc., whose post officI:- address is One Warren Place, 6100 S. Yale A\'e., Suile 1700 Tulsa, OK 74136, herehmflcr called Les.~ee:
WITNHSSfffH, That the Lessor. for and in consideration of 1'~.!l-ª!!!LpllltlL{UO.O..9..±.1 DOLLAl~ cash In band paid, the f\!Cellt of ~vhkb is hereby
aànowledge\l., aoolhe CQveUllnlli 1111(1 agreemcnts hereinafter cQntained, has granted, demised. lellSed IInd leI. IInd by these present$ doosgmnt, dt'IJUse,lcaseand Ict
cxclusively unto the s"id Lessee. the land hereinafter described, with Ult: exclusive righl for the purpose of mining, e1>pklrlng by gecpbysiCIIland uther Ulethods, and
operating fur and producing therefrolll Qil ¡Iud IIIl gas of whlltsoover nalure or kind, with. right.s of way aud easements for laying pipe lines. and er-:c(luH 1,)f
stnl!;;tul"e..~ thereon to pmduce, saveandwke care of said products. aUlhal ccrtaintract of laud silualed In the County of Lincoln, Slale of Wyuming, desclib¢d 3$
follows, lo-wit: .
, lwreinaner called Lessor (whether Olle
Tpwu§.hÜ?.11 Nortb....Rang.e 115 W~sl.6t.!.LE.t-.M..
Section 36: All (also described as Section 36: LOis 37,44 and 46), less and
except Ihe railroad right of way
and containing .&11Ji.L acres, more or leu.
I. 11 isagreëd 11Ial this lense shall remain in force f(lr a tenll of five (5) years from tbls date alld It~ long IIlerC'.tfter as oil or gas uf whatsoevcr u¡¡ture or Idud is
IrrooflÇcd from s/lld ICIl3<''\I prcutlses 01' 011 acreage pooled therewiUI, or drltllllg operations are coutlnued as hereinafter prQvided. If, at the expiration of thc J!limary
lcnll ~f thb lease, oil or gllS is not beblg ll((¡duced QJ! the leased pnl/uises or on acreage JX'oled thercwitIl bllt Lessee is Ihen engaged in drllllug or re-working
(pcrahul1.~ thereon. then thls lea"e shnll cQllthlUe 111 (ol1:e snlung as (lperatiOß$ are being cOlltinllollsly }Iro¡¡ecutcd un tbe lensed premises or QII acreage pool,cd
therewith; aud ol.\Crations shllll be c()usidered lu be COlltitlu\Jusly prQ.i(X."Uled if u{¡tmore IIlan nitlely (90) days sb.11I elapse between the completion or abandolUneut uf
Olll¡) well aud the begim1in& of operntior~~ for tbe drilling of II subsequcnt well. If after dis<::u\'ery of QÎ! or gas on said land or un acreage PQot~1 Ihercwidl, the
productloll thereoC should cCilSe' from any catlse II./'ler Ihe primary tenn, this leMe shall not tenninule if Lessee COnUllel1CeS additiUlIul drimog or re-worklng
opcrations within ninety (90) d;IYs fwm dale Qf ccssation of production Qr fn.\ln datc of cQlUplction of dry hole. If oîl or gas slmll be discovered IIlId produced 1L.~ II
msult of such operatious at crafter the explralion of the pnrnnr)' tcrm of this Icase, t¡js lease shall continue In force so loug as oil (]I' gas Is produced fr(HII the
leued prmlli.~es or ona<::reage J!<!0led therewith.
2. Tllb is a l'AID-tI1> U!ASU. In Ç()1/SideratiOIl of lhe dowlI cash paymelll. Lessor ,,¡rees that Lessee shallllot be obligtucd, Cltccpt liS othelwise IJrovidcd
herein, to COnlmellCe or c!!nlIlI\lealt)' opetaduus during Ihe primary term. .tenee rua. y at allY tI~li~ or tillles duriug 01' after Ihe .primary tcnll s:lnellder this l~!lse. as
to all or any IJOllioll of saId land and as 10 auy strata or stratum by delivering to Lessor or by .fillng for recorda release or releases, alld be relteved of all obhgalnm
thereafter accruing as. 10lhe acreage surrendered.
3. In cOß$ider~tJon of tbe PTC!1lises tile said Lessce COVell¡¡llts 1I'.It.!. as¡,rees: '. , ..
ht_ To dehver to the I;r(:(1I1 of Lessor, free of Cost, 1.11 the llpe hue to whk:h Lessee lUay CQnnect wells on slIIdland, dIe e<llIal one-elght11 (118) part uf all (111
(lwduced and $avoo frvm the 11:0500. premises.
2nd. T{I {I'd! Lessor o¡¡~'eì,ghtIl (l18) of the gn)ss proceeds each )'eür, J1il)'able quarterly, for tbe gll$ from each wdl where ga£ only Is found, white the HUII~
15 being used off tile premises,Itnd .if used In IIIC~ marmfactvre oC gasoUr(: a royahy (If one-eighth (1/8), pnyaWe lIIonllll)' .11 the prevailing marke( nlte for gas.
3r\l. To pay Lessor for gas produced from any oil well alld IIsed off the premises or III the mnnllfaclure of gasoline or any Qther (Jwduct a HI)'alt1 (If oue.
eighlh {liS) of the proc<:eds, at the mouth of the well, fliryab!e III/Juthlyat Lhe .>tevalling market mte.
-I. Where g3$ f,,('I1fI a well capable t.fprodudng gas is not sold or used, Lessee mllY lay or tender ~ Hlyalty to the IOYllll)' OWI'l(.'n One Dollar per year per net
mYilllyacre retained htJrcum.h:r, ¡lith !'¡WUlcnt "r lünder hI be Jade QII or lteRlr;: \11>., alU¡\'ersary dalo' of dli. least tlellt ensuing lifter thc cof.plrathm of J;'I} o:!)'s (rom
the dute Sllcl. well is shulill and (hereaRer on or before the anniversary date of this le'1Se during tIle period slIchweU Is shut In. Lesst'e'S failure to payor tender, or
properly payor leuder. allY soch slUn shall rcnder Les$~ liable ftlr the ¡nnQ1mt due but it shnll nol operate 111 terminate this (eilse.
5. If said Le$Sor owns a less ioterest in Ihe above de.m·ibedland t!lanthe entire and undiv.ided fee simple cSlJlle therein.lhen tlte wynlties (including any shut-in
gas royalty) hereil11[(Jvíded for shalllJC paid the Lessor only in ,11m proportioll which Lessor's interest bears to Ihe whole aud uodivided fee.
6. Lessec shall have II.\C right tlluse, free of cosl, gas, o.il and waler prooucc\l on said land for I.t'ssee's operation Ulcrron, e>\cepl waler fmm thewt'Us of
Lessor.
7. When fC(lIested by Lessor, Lessee shaU bury Lessee's pipe lilw below plow depth. '
8. NQ weU shall be dríl!ed lIeluer tllall 2IJO reel to lhe bouse or barn HOW on said premIses wilhout the written COll5ent or Lessor.
9.. Lessee shall 11''¡)' fur damages causoo by Lcssee's operatlQus to growing crops WI said land.
1(1. Lessee shat have tlie right at any lime to remove n!lmochhtery and n;~turC$ piaced Oil said prefJIis(~s, including the ri~bltO draw and remove casing.
II. The righls of Lc:ssor and Lcsllee. hereunder may be assigned in whole or in part. No change in Qwt1<:rship of Lessor s inlerest thy assignment or othenvise)
shalll)e l.hl<1ing UII Lcsst'c until Les"ce has been furnished wilt. notice, cOll$ísting of certified copies of allrecotded instruments or ùœul1Icnt, and other InfurmatiulI
nccessary 10 c.~tablish a cOIIII)lel<: chain of reCQl"d title Irom Le55(.", all<1 thC.1I onl)'. with respect tu pnyrncuts thereaOer made. No {jlher kind of lIotkc, wheù1(~r actual
or c?lISlInctive! sl!aU be bi!l(l!n~ on Lessee. No present or future division of !--essor's ownership M (0. different porlÍOI1S or parc:ls ~If said laud s!¡¡l1lupernte tu
enlaJ&e the Qhhgatlolls or dlll1l1ush tbe rights of Lessee, aud all LesS(.'C's opcr.¡lIlOn.\ lIIay be cOIKluct(:.d without n:gnrd to any such dlVistoll. If ¡In or uuy part of this
lens¢" .~ assigned, nQ leasehold Qwner shall be liable for any act or umission of any olher le.aschQld OWller,
12. Lessee,lllil$ option; is hereby given the ri~ht and ¡JOwer IIlao. )' time and from time to timc M II reeu. rring righi, either before or afi. er 11md\H;li\111. as t(1 all
01" any part of the land described herein and as to lIuy OIIC or more of the fonnaliollS hereundeJ', to IKIOI or unilÎl.e tIu: leasehold estate and Ùle nuncral estale clwered
by IhlS lell;se willi olher land, lease or leases In the 1III\1\<':dlate vicinity ror the productiuu of oil alld gas. or separately for the production of eiUler, Wb"'._1I ill Lt'$see's
jud¡¡UICllt II is necessary or advisable to do $0, and irrespective of whether authority similar 10 Ùlis eJl!:;1.1 with respect to such other land, tense Qr leases. LU;ewlse,
units previously funned 10 indude formalÌolIs nol prooucing oil or gas, may be reformed 10 cx.c!ude stich IIQII-producing formations. The forming or reforming of
allY Ilnit shall he nccoIIJplished \1)' I-esse<: ~o\Ccuting and filing of rccQrd a dec1i1ralÌoJl or such ulliliz¡¡tÌ{\II or reformation, which dednratÎQ1t shall de,ççrlhc the unit.
Any unit lIIay hlClude lall<1 tI.fIOl\ which a wel! bas then:tofore been completed Qr 1IJI('fI which 01.\Cratil1lJ.' for drllUng have .\¡erctufore been commclI\:c::d.>rodllclloll.
drifl¡ng ur reworking l'perahuH¡¡ or a well shut in for WaUl (If a market. nnywhere on a unit which includes all or a parI of ÙlÌs lease shaU be trcl\ted as if il Were
¡)'OdUCtiofl, drìlllng or reworking operatious or II wd shut in for want of a market under this lease. In lieu of tbe royallie:¡ clst'wltete herein slwcified, indudiug
sJI\1t-il~ gas royahìe..\. Lessur shaH receiye 0,11 product,ion ffOlII Lhe. tll.lit SI.\ pooled roy..llies only 011 .theportio.l1. 0.' f such produç(joll.aUocat<:d. 10 IIt!;S lease; such
..U(/CalJon shall be that pmporlIolI of lheulllt prodm:uon tlmt the Iota I number of surface aertS 1:ovelcd by !Jus lease and included III 11m umt bears 10 the lotal
number of surface acres in SUChlU1it. III additlOIl to IItC foregoing, ¡...essc\: shall hayc the right to unltizc, pool or t'Oll1llhiC all or alJ)' pall of the ¡¡buv!: described
lands M to Qne In 1I10re of tIle formatiolJs Ihereunder wilh olher lands in Ibc s¡une gencral arca b)' entering iuto a CQolleIalive or unit plan of development (.'1'
U1te"1'Ji. liun apl'rov<.>( by IIny gtlvenJUleHl.a.. audll!rity aud, fwm .ùme to time. with Uke approval, 10 mOdif.y, dlal.lge or Il:I"lIIinal1:. :mysuch pl.3J\ or nl!reculCnt. nud, in
sllch CVCIII. lhe ICflIlS, conditions and pfOvisifl!lS of this lease shall be deellled modìfied 10 cOliform 10 the (emlS,cOIu!itions. and !lI'(JVÍ$iolls of SlIchllpJmved
cooperati!c or UI!¡t plan 01: (~eve1('pmenl oropernlion and, particularly, all ddl.ling and developmcnt requircments of Ihls le:!se, ex.pre,~s or implied, shall be saf.Ïslïed
by <:ol.lIpliance WIIJ¡ Ihe dnlhng and development reQ.uirel11eu¡s of s\lch pla.1I or agreement. alld this letlSc sha. U I\C,t terminate tlr cxpirt! during the life of such plan or
agrecl~lent In theel/cut that ,'r~¡d al){)vc descriÞed lands or any part thereof, shllll hereaner be operated ml<1er anysllch conpcrahve or ullit plnn of develupment or
O/JC111l1011 wherchy Ihe I)fodm;.twntheref..mu Is ."ltoealcd 10 differellt POHÍtJI'S of Ihe 1;111<1 ç(,Yered by said p¡¡n, then Ihe produ,;(ì\)IJ aJlo,·ltoo 1(1 any panil..'ut¡¡r Inlct of
!¡u!Ú shnll. for Ihe J1lf1Qse of computing the w}'allies ,IQ be paid hereunder tt) Le1isor, be legarded 8$ baving been produced fr(JlJI (jIC particular Irnçt of laud to which
It IS nlloc{tte.d .and IIQt 10 any OIlier IrBct oI land; '!IId the royally ¡mymr.1I1s to be made hctcunder 10 Lessor shall be b¡¡slX! upon production <)Illy s so ulloc$.ted.
Lessor shall furu"allycxpr.::ss Le.'iSUI"·scolIscnt to anycoopcralive or unll plan of devColJUlcllt or operation adopted by 1-t'55e.: alld approved by anYlìllvernrnclltal
îlgcncy by e~eculllJg Ihe same Upoll fCl.111cSlof Lesscc.
13. AU exvress or impUed covenanls of lhls leasc shall be subject It) ail Federal alld ShlleLaws. Exenllive Orders, Rules or Regulations, and this lease s!mllnol
Ù': tenniuated, in whole ur In part, nor Lessee beld liablc In damages, fOI failure to cOlUpiy therewiUl, iJ CIIllIflli¡mce is prevented by. or if such failule Is the result
of. allY ,'ruell Law, Order. Rille or Regulation.
* LEASE 1Sl-fADE SUBJECT TO THAT CERTAIN UNRECORDED LETTER AGREEt-lliNT .BY AND
BET\vEEN ZENERGY, INC, AND AR..-"¡OLD & DEBBIE LARSON DA'fED JUNE 30, 2006.
,- ~ .
. "', -~ .
~JÌ~~m~ir:~1
0920502
000191
14. l.essor b~n:by warrao!$ and agre.e5 to defend tile tide to.the lands he!eio déScrit::<-Xl, and agrees that the Lessee shall have the right at any time to redeen;' for
Lessor. by payment, allY mortgages. lues or other lieus on the above dl:$cnlx:d lands, UI the event of default of payment by Lessor and be subrogattXl to the rIghts
of the ho!d~ tbere;:¡f. and IlIe u~ersignt:d l.~ssol'1i, for tI!emseh'es and their heirs, successOrs a!'à assigns. b~rebY surrender and relea:;e all.right of. dower and
hOI~lesl¢<<ld I,n die premises described herem, II1sofaras $aId right of dower an~. homestead may JII any way atfeçt the IJtlrpos~ for wh.lcl! tillS !ease IS Jllilde, as
re<;IIOO herem. Lessor agrees to e)lecute~'t.idl l'urùter assurances as may be requisite for the fuU and complete ttýoymeffi of the nglus herem grantt.>d.
15. Should anyone or more of the panies hereina~ve namoo as Le1sor faU to execUle tltis lease, it sha!t ne\'erthcl~$ be \>¡ndìng upon a11 such parties w!¡~ do
e)leCllle It WI Lessor. 'I1\e word "Lessor,· as used In thIS Jeas<:, slull mean allY Qlle or more or all of the parlies who execUte thIs lease as l.essor. All the prOYISIOnS
of this lease shaU be binding on 11le heirs. $uc«$sors and assigns of Lessor and Less~_
16. Anythin$ It) tbe cQlltrary herein notwithstanding, ¡fLessor ¡)WOS a greater iHteres! in ¡he lands described than is purported to be leased hereby or lu:reafter
acquires ally additional Interest or tide In the lands described. Ùten this lease shall çover such greater or addiúona! after-acquired inlerest or title, and I..t.."Ssor agrees
In give Les$ée writtenllótke of Jlu}' such acquLo¡Jlion as .'10011 WI the Same is made, in which event lire royalties payable to Lessor sllaU he increased proporlioruuely.
IN WITNESS WHEREOF, d¡jsinstf1ll11elllls eXl."Cuted as of the date firstulmve written.
,-'~ ¿~5"'-
Debbie K. Larson
~~.~
Arnold N. Larson
__"__H_
STATE OF ._....J!y.2~!!lg
)
) ss.
)
INDIVIDUAL ACKNOWLEDGMENT
COUNTY OF ---1incQln
BEFORE ME, Ihe undersigned, a Notary Public, in and for said County and State, on this 1 s t day of -lJ!lY..____>
2006, personally appeared._...Ar.nold N.µtr,<iQ..n and Q~.hic K. LJ!f!9.!L....htt'ªQl!n(! alld.JVifc. indivi~lu~!Jy and aUilll1\tltsJ?Y...lhç
ÇJtl.!rçJ.lç,§.....__.___to me known to be the identical persons described in and who executed the within and foregoing
¡nstrumt~nt of writing a.nd acknowledged to me that ~thcL........ dulyexecutcd the same as --.th~L-.Jree. and voluntary act and
deed for the uses and purposes therein set forth.
IN WITNESS WHEREOF, I bave hereunto set my hand and affixed my notarhd seal tl¡e da)! and year last above written.
~~.~~~~~..r~
K. R. ,ISTI STEWART - NOTARY PUBLIC I'.'
My Còmmissk 1 Expire.s:--D _00..9_____.__
County of ;,. State of
Lincoln· Wyoming
M Commission Expires October 4. 2009 "1
'. ~,-,_./
-~~~._-----
Notary Public
Address: !lac) ~~k~~1J3/6)
STATE OF
....
)
) 5S.
INDIVIDUAL ACKNOWLEDGMENT
COUN'tx OF
)
BEFORE ME, the undersigned, a Notary Public, in tUld for said County and State, 011 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 tIle same as
free and voluntary act and deed for the uses and purposes. therein set forth.
IN WITNESS WHEREOF, I havehereul1to set my hand and affixed my nota.rial seal the day and year last above written.
~-Iy Commission Expires:
..------
Notary Public
Address :
:1
'in~ Kimball, Nebraska 69145.