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HomeMy WebLinkAbout921245 ;~;~mm~;~¡¡m~~~~i II PRODUCERS 88-PAID UP Rev, 5-60, No.-2 - 8pl.-Amended RECEIVED 8/14/2006 at 11 :24 AM RECEIVING # 921245 BOOK: 630 PAGE: 96 JEANNE WAGNER . LINCOLN COUNTY CLERK',u~EfIt1MERER, WY 000096 OIL AND GAS LEASE AGREEMENT, Made and entered into the 24'" day of July , 20..QL, by and between David Eckenrode, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode, deceased, and Barbee Ann Eckenrode, his wife Whose post office address is 2898 La Cresta Circle, Minden, NV 89423 , 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, Jor and inconsideration of Ten and more ($.10.00+) DOLLARS cash in hand paid, the receipt of ~hich is hereby acknowledged, and the covenants and agreements hereinaft,~r contained, has gra.nted,. deIllised, leased and let" a!1d by thes~ presents does ,grant, deIllise, lease and let exclusively unto the said Lessee, the land hereinafter descnbed, with the exclus!ve ng~t f~r the purpose of IlliDlng, explonn~ by ~eop~yslcal and oth~r methods, and operating for and producing therefrom oil and all gas of whatsoever n~ture or kmd, WI~ ngh~ of way and ease~ents for laymg pipe li~es, and e~ecuon of structures thereon to produce, save and take care of said products, all that certam tract of land situated m the County of Lmcoln, State of WyoIlling, descnbed 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/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 lease 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 leased premises or on acreage pooled therewIth, or d~llImg operaUons are contmued aS,heremafter pro.vlded. If, at the ~xplr~u,on of the pnm~ry term of this lease, oil or gas is not being pr~uc~d on the leased preIllises ~r on acre~ge pool~ therewIth but Lessee IS then engaged, m dnlling or re-workmg operations thereon, then this lease shall contmue 10 f~rce so long as oper~tlons are bemg c~ntlnuously prosecuted on the leased preIllises, or on acreage pooled therewith; and operations shall be con~idered to be c~n~muously prosecuted If not more thary nmety (90) ~ays shall elaps~ between the completion or abandon~ent 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 production or from date of completion of drr 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 10 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, I.n consid,eration of. the down cash payment, Lessor ~grees tJ.1at Lesse~ shall not be obli~ated, except as otherwi~e provided herein, to commence or continue any operations dunng the pnmary t,erm: Lessee may at any t~e or times durmg 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 delivermg 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 10 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 (1/8) 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 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. 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 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 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 10 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 furnisbed 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 dimiDlSh the rights <?f Lessee, and all Less~e',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 OIlliSSlon 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 anr 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 unmediate vicinity for the production of oil and gas, or separately for the produ,ction 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 [and 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 anywbere on a uni~ 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, ~ssor shall re.ceive on production from the unit so pooled royalties only on th~ portion of. such pro?uction ~lIocated to this lease; such allocation shall be that proportion o~ ~e UDlt productl~n that the total number of s~rface acr~~ covered by thIS I~ase and mcluded 10 the UDlt bears to ,the total number of surface acres in such UDl(, In addition to the foregomg, Lessee shall have the nght to UDltlze, pool or comb me 'all or any part of the above descnbed 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 provisi<?ns of this le~se shall be de~n.red modified to conform ~ the terms, c(;mditions, and provis,ions, of such approv~d cooperative or unit plan of development or operation and, particularly, all dnlling and development requIrements of thiS lease, express or Implied, shall be satisfied by comp)iance 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 anvpan thçreof, shall hereafter be operated under any such cooperative or umt plan of development or operalion 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 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. I3, All express or implied covenants of this lease shall bè 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, " " I}'; .,..~;I· ¡.' \ ~ :J / 000097 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 pur{loses 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, 11 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 assigns of Lessor and Lessee. 16, Any thins 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 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 WHEREOF, this ~nstmment is executed 3J;.of the date first above written.' ~' ~.~. ',_' _ , _ßo~a_a(\( ~~~ Barbee Arm Eckenrode David Eckenr de, individually and as heir to the Estate of Virginia Leanne avison Eckenrode, deceased STATE OF Ne-vtWÚu COUNTY OF ('a./S0fJ CITy ) ) ss. ) INDIVIDUAL ACKNOWLEDGMENT BEFORE ME, the undersigned, a Notary Public, in and for said County and State, on this J.S-J- day of IlvC¡Uô r 2006, personally appeared David Eckenrode, individually and as heir to the Estate of Virginia Leanne Davison Eckenrode, deceased, and Barbee Arm Eckenrode, his wife 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 hereuht(>sët nlY hand and affixed my-notarial seal the day and year last above written. My Commission Expires: 3/:V / ;¿.oJ () . I "'·....ll'......."...... ... NOTARY PUBLIC STATE OF NEVADA County of Carson City LISA SHEPPARD ~~ Notary Public Address: '1"3 7'405 Y "-/I. Sr-e. 3 0 ~ CtL/'tSv/l ed-y N\I [}'17o~ " STATE OF COUNTY OF ) ss. INDIVIDUAL ACKNOWLEDGMENT ) 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 des'cribed 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 recordlli:@~¡!¡;:,'rJr~~ to Antelope Land Services, LLC, P,. ol¡j~~~¡¡mS7, Kimball, Nebraska 69145.