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HomeMy WebLinkAbout921244 l:'T~:ijl~~~;;ì tf~~~~~~;~¡~J \ RECEIVED 8/14/2006 at 11 :24 AM RECEIVING # 921244 BOOK: 630 PAGE: 94 JEANNE WAGNER LINCOLN COUNTY CLERK, ~EMMER_ER, WY 000094 ~. ----. ~ - --- --- PRODUCERS 88-PAID UP Rev. 5-60, No.-2 - 8pt.-Amended OIL AND GAS LEASE AGREEMENT, Made and entered into the 241h day of July ,20~, by and between Arthur James Davison and Phyliss Joy Davison, husband and wife Whose post office address is 39560 GJenwood Ct., Murrieta, CA 92562 , hereinafter called Lessor (whether one or more) and Zenergy, Inc., whose post office address'ìs 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 and1tgreei11elits hereinafter contained; has granted, deßÚsed, 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 WyoßÚng, described as follows, to- wit: Township 21 North, Range 115 West, 6th P. M. Section 34: WI2 SW/4 and that part of the NE/4 SW/4 lying south of the Union Pacific Railroad right-of-way and containing 95.00 acres, more or less. 1, It is agreed that this leas~ shall remain in force for a term. of five (?). years fro~ this date a~d as long th~reafter as o,il or gas of whatso~ve! nature or k,ind is produced from said l~ased prel!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, 011 or gas IS not belOg 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 shall continue in force so long as operations are being continuously prosecuted on the leased premises or on acreage pooled therewith; and ope~ations 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 terßÚnate if Lessee commences additional drilling or re-working operations within ninety (90) days from date of cessation of production or from date of completion of dry 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 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 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 ~e ac.reage surrende~ed. ....,.-..,"'""- ....,...... ....'........"..."..-.."....1' 3, In conslderauon of the prenuses the saId Lessee covenants and a rees: .,' \f.¡~" ',¡''¡ ,i' I':':; ,'" "þ 1st. To deliver to the credit of Lessor" free of cost, in the pipe fine to which Lessee may connect wells on said land, "e .ft~lIi' e7elghth (1/8) part of ,all oil /¡ produced and saved from the. leased prenuses. 1 //~...:.: ),"': '. , . 2nd, To pay Lessor one-eighth (1/8) of the gross proceeds each year, payable quarterly, for the gas from each well Wliè.~~~~, "found/while the same IS being used off the preßÚses, and if used in the manufacture of gasoline a royalty of one-eighth (118), payable monthly at the~w~ã 'market rate for gas. 3rd, To pay Lessor for gas produced from any oil well and used off the pre~s.es or in the manufactur, e of gaSOline~" r :cagy other product a royalty of one- eighth (1/8) of the proceeds, at the mouth of the well, payable monthly at the prevadlOg 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 royal Y'owneïs Orie'Dollar per year pel 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 liahle for the amount due but it shall not operate to terßÚnate 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 preßÚses 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 preßÚses, including the right to draw and remove casing, 11, 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 LessQr, and then only with respect to payments thereafter made. No other kind of notice, whether actual or constructive, shall be hindin~ 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 oßÚssion 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 munediate 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 forßÚng or reforßÚng 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 uoder 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 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 like 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 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 s,hall 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 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 terßÚnated. 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. .'. / Ò00095 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 dower and homestead may in any way affect the pu~ses 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, II 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 arid assigns of Lessor and Lessee. 16. Anythin~ 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 title in the lands descnbed, then this lease shall cover such greater or additional after-acquired interest or tide, and Lessor agrees to give Lessee wriuen notice of any such acquisilion as soon as the same is made, in which event the royalties payable to Lessor shall be increased proportionately. IN WITNESS WHEREOF. Ihis insrrumentis executed as j)f the date first above written__.."c_ _____ ___ ".,. _ _ " rP4J~ 44/12AH'~~ Ph)IÚss Joy ~on/ STATE OF CAL\\"O~\t~' COUNTY OF ~\\J~\~E ) ) ss. ) . . ThrnDnDUALACKNOWLEDGMENT BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this () \ 2006, personally appeared Arthur James Davison and Phyliss Joy Davison, husband and wife day of Au f..u S J 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 setmy hand and affixed my notarial seal the day and year last above written. My Commission Expires: t-...\oi~' PUBl'" :'~~ 1'\ \~ ltA- ~:T B- Notary Public Address : . ...- 5..~ -1- .& NISHA PATE~ , n # 1543022 r Nófary ,Public· CaU'omla f RIverside County f ~ :~m:.. Ex~e~J~ 9.:. 2~ ~--_._.- .._.-. ~t> tE:SS: Øt4'i.\ 0 l'YIu 2..0\ ElA- ~.,. ~P~I Net¡ '!:o (Z.O , fVl4"-~1 ETA- C-A Cf'2.Sb 3 STATE OF ) ) ss. ThrnIVIDUAL ACKNOWLEDGMENT 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: "- _ __h ..._....... Notary Public Address : When recorde Antelope Land Services, LLC, P. O. Kimball, Nebraska 69145.