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Home My WebLink About921241 ~~m;;~!;~ili;m~~ n RECEIVED 8/14/2006 at 11 :22 AM RECEIVING # 921241 BOOK: 630 PAGE: 88 JEANNE WAGNER LINCOLN COUNTY CLERK, KEMMERER, WY 000088 .~ --'-,- - - ---.--"-. PRODUCERS 88-PAID UP Rev, 5-60, No,-2 - 8pt.-Amended - --- -- --..- ._.~ - OIL AND GAS LEASE AGREEMENT, Made and entered into the 24dt day of July , 20 ~, by and between Denise Eckenrode Gealta, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode, deceased, and John Andrew Gealta, her husband Whose post office address is 34185 Pourroy Rd., Winchester, CA 92596 , 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,.ThaLthe.-LeS8or,JQLand_.iJu.~l!siderati9!1,}?fTen and moreÆO.OO+)DOLI..,~S ~ash in hand paid, the receipt of ~hich is hereby acknowledged, and the covenants and agreements heremaft~r con~med, has gra.nteô~ âenused;leased and let" a!1itby these: presents does ,&rant, denuse¡ lease"andlc~,-- exclusively unto the said Lessee, the land hereinafter descnbed, With the exclus!ve ng~t f~r the purpose of mmmg, explonn~ by ~eop~yslcal and oth.er methods, and operating for and producing therefrom oil and all gas of whatsoever nature or kmd, WIth nghts of way and easements for laymg pipe hnes, and erectlon 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/4lying south of the Union Pacific Railroad right-of-way and contaIning 95,00 acres, more or less. ' , I. It is agreed that thiS lease: shall remain in force for a term, of five (5), years fro~ this date a~d as long the:reafter as o,il or gas of whatso~ver nature or k,ind is produced from said leased pre~llses or <?n acreage pooled therewith, or d~llhng operations are continued as. heremafter pro,vlded, If, at the ~xplr~tI.on of the pnm~ry term of this lease, oil or gas IS not bemg produced on the leased prenuses or on acreage pooled therewIth but Lessee IS then engaged m dnlhng or re-workmg operations thereon, then this lease sh~ll continue in f~rce so long as oper~tions are being c.ontinuously prosecuted on the leased premises, or on acreage pooled therewith: and operations, shall be con~ldered to be c~n~muously prosecuted If not more tha~ mnety (90) ~ays shall e!aps~ between the completion or ahandon~ent of one well and the beginnmg of operations for the dnlhng .of a subseque~t well. If after dlsc~very ,of oil or gas on said la~~ or on ,a~reage pooled ~herewlth" the production thereof should cease from any cause after the pnmary term, thIS lease shall not termmate If Lessee commences additional dnlhng or re-workmg operations within ninety (90) days from,da~e of cessatio,n of productIon ?r from da,te of completion ,?f drr hole. If oil or gas ~hall be ~iscovered and produced as a resu,1t of such operations at or after the expiration of the pnmary tt;PI! Qf. lIDs ,leaS,e" ,thIS lease ,shall contmue ,10 force so long as 011 or gas IS produced from the leased premises or on acreage pooled therewith..; " ,'" "',\ " " '. ' 2, This is a PAI!?-UP LEASE. ~ consid,eratic:Jn ofJþe down cash paYü1pgt, Lesso,r ~grees tl;tat Lesse~ shall not be obligated, except as otherwi~e provided herein. to commence or contmue any operations durmg the pr.lmary lerm, Lessee may at any tune or 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 by d~livêr'ing to Lessor 'or by filing for record a release or releases, and be relieved of all obligation thereafter accruing as to the acreage surrendered. ,',~", "i" . : , . " ,,' 3, In consideration of the premises the said Lessee cpveµants and ,agrees: .. , " ' 1st. To deliver to the credit of Lessor, free 9{ S9ßt, in the pipe line to which~~seemay c0"!1ect 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 (118) 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 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 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. S, 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 pay for damages caused by Lessee's operations to growing crops on said land. 10, Lessee shall have the right at àny time to remove all machinerr 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 m 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 any part of the land described herein and as to anyone 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 unit shall be accomplished by Lessee executing and filing 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 prü?uction ~Ilocated to this lease; such allocation shall be that proportion of the umt production that the total number of surface acres covered by thIS lease and mcluded m the unit 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,pJa,n or agreement and,.in such event, the ,terms, conditions and provisionsoLthis lease shall be deemed modified to conform to the terms, conditions, 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 implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire durin¡¡ 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 Ul11t 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 Regulation. 000089 ~>:;~ 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 pUl"{loses 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 rights 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~ succes~ors an~ assi$.ns of Lessor and Lessee:. '. 16. Anythin~ to the contrary herem notwlthstandm~, If Lessor owns a greater mterest m 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. IN WITNESS WHJRgOl:, this instrument ~~e.xecuted ~of th~ date _~rs,t above, written,. . n. , ..~~~ Denise Eckenrode Gealta, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode, deceased STATE OF edt!ffM't/L COUNTY OF (J?INir~ide ) ) ss. ) INDIVIDUAL ACKNOWLEDGMENT BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this 113 day of V ~ 2006, personally appeared Denise Eckenrode Gealta, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode, deceased, and John Andrew Gealta, 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. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal.the day and year last above written. .~ ---' -- ..-'- STATE OF My Comm;ssion Expires, lð·J'·t\l.,."-~L~-t~A~, , '@ Commlsllon # 1443324 ~otary Public · Notary PublIc· California d . :::z.a'7~2' 1J1ft.;. r L - v../ "/07 Riverside County dress. ../"(?-,? wr. ~ ¡c.A. My Comm. expires Oct 3, 2007 I' ~. ¿f'ZS7, .3 ) ) ss. INDnnnUALACKNO~EDGMENT 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 destribed 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 record