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PRODUCERS 88-PAID UP
Rev. 5-60, No,-2 - 8pt.-Amended
RECEIVED 8/14/2006 at 11 :23 AM
RECEIVING # 921242
BOOK: 630 PAGE: 90
JEANNE WAGNER
LINCOLN COUNTY CLERK, KEMMERER
- -._--. ,
000090
wY
OIL AND GAS LEASE
AGREEMENT, Made and entered into the 21st day of July , 20~, by and between Dennis Eckenrode, individually and as heir
to the Estate of Vir inia Leanne Davison Eckenrode deceased and Juli Marie E ers his wife
, hereinafter calted Lessor (whether one or more) and
Whose post office address is 30300 Antelope Rd. , Apt. 10 17 , Menifee, CA 92584
Zenergy, Inc., whose post office address is One Warren Place, 6100 S, Yale Ave., Suite 1700 Tulsa, OK 74136, hereinafter calted 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 agreeme~ts hereinaft~r cont~ined, has gra.nted,. demised, leased and let" a!ld by these: presents does want, demise, lease and let
exclusively unto the said Lessee, the lan~ heremafter descnbed, With the exclus!ve ng~t f~r the purpose of mmmg. explonn~ by ~eop~yslcal and oth~r methods, and
operating for and producing therefrom Oil and alt gas of whatsoever nature or kmd, WIth nghts of way and easements for laymg 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/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 from this date and as long thereafter as oil or gas of whatsoever nature or kind is
produced from said l~ased pre~ses or <?n acreage pooled therewith, or d~illing operations are continued as, hereinafter pro.vided. If, at the ~xpirati.on of the prim~ry
term of this lease, oil or gas IS not bemg produced on the leased preffi1ses or on acreage pooled therewith but Lessee IS then engaged m dnllmg or re-workmg
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 shalt be considered to be continuously prosecuted if not more than ninety (90) days shalt 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 ~ause after the primary term, this lease sha,lt not terminate if L~ssee commences a~ditional drilling or re-working operations
within ninety (90) days from date of cessation of production or from date of completion of dry hole. If 011 or gas shalt 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 shalt 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 alt or
any portion of said land and as to any strata or stratum by delivering to Lessor or hy filing for record a release or releases, and be relieved of alt 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 welts on said land, the equal one-eighth (118) part of alt 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 welt 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 (l/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 welt, 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 Doltar 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 welt is shut in and thereafter on or before the anniversary date of this lease during the period such welt 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 shalt 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 shalt be paid the Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee.
6, Lessee shalt 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 shalt 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 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
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 any 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
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, Lessor shall receive on production from the unit 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 unit bears to the total number of surface acres in
such unit. In addition to the foregoing, Lessee shall have the right to unitize, pool or combipe all or any part of the above described lands as to one or more of the
formations thereunder with other lands in the same I:eneral area by entering into a cooperative or unit plan Of development or operation approved by any
gove~l!JI1ental autho~i~y and, fr~m time to time, with like approval, to modify, change or ter~nate any such .I~lan 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
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 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 allocated and
not to any other 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 unll 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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v
000091
14, Lessor hereby warrants and agrees to defend the titie 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 pU11>0ses 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 nghts herein 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
executé 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 assiß.ns of Lessor and Lessee.
16, Anything to the contrary herein notwithstandin~, If Lessor owns a greater interest in the lands described than is purported to be leased hereby or hereafter
acquires any additional interest or titie in the lands des Ibed, then this lease shall cover such greater or additional after-acquired interest or titie. and Lessor agrees to
give Lessee wri en notic y such acquisition 00 as the same is made, in which event the royalties payable to Lessor shall be increased proportionately.
IN W 5 , this instrument i exe ted as of the date first above written.
~¿-~¡~;:~~:::
Dennis Eckenrode, individually anâ às heir to the Estate of<;§'~p~
Virgima Leanne Davison Eckenrode, deceased t:I 6ICÁ;f'ó<{)
STATE OF tJdù(VIc~ )
COUNTY OF Rl V'Wr; \' d 'f- ~ ss.
BEFORE ME, the undersigned, a Nntary Pnblie, in and fnr said Cnunty and State, on this é).... day Of· A-uq-(éç f-.
2006, personally appeared Dennis Eckenrode, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode,
ers his wife to me known to be the identical persons described in and who executed
INDIVIDUAL ACKNOWLEDGMENT
the within and for going instrument of writing and acknowledged to me that they
and voluntary act and deed for the uses and purposes therein set forth.
duly executed the same as
their
free
My Commission Expires:
STATE OF
MyComm. expires Jun21 , 20
) ss.
)
mnnnDUALACKNOWLEDGMENT
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
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.
duly executed the same as
free and
My Commission Expires:
Notary Public
Address :
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When record
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to Antelope Land SefVlces, LLC, P. O'~¡~l!;!;¡l¡;¡@:P, Kimball, Nebraska 69145.